Shares of firearms manufacturer Smith & Wesson Brands (NASDAQ:SWBI) jumped in after-hours trading after the company reported earnings for its fourth quarter of Fiscal Year 2024. Earnings per share came in at $0.45, which beat analysts’ consensus estimate of $0.36 per share. It’s also worth noting that Smith & Wesson has beaten earnings estimates in six of its last nine quarters (including today’s results), as pictured below:
Sales increased by 9.9% year-over-year, with revenue hitting $159.15 million. This beat analysts’ expectations of $156.8 million.
Is SWBI Stock a Buy?
Turning to Wall Street, two analysts are covering SWBI stock, and both have Buy ratings. Five-star analyst Mark Smith has assigned a $16 price target, which implies a slight downside risk from current levels. It’s worth noting that, so far, Smith has enjoyed a 54% success rate on SWBI stock, with an average return of 32.59% per rating. However, hedge funds seem to disagree.
When it comes to “smart money,” money managers don’t seem to be all that confident in SWBI stock. Indeed, hedge funds decreased their holdings in the stock by 13,700 shares in the past quarter. As a result, they have a negative confidence signal, as indicated by the graphic below.
