Smith & Wesson Stocks Surge Following Record High Background Checks
Gun manufacturer's stock prices explode after FBI releases new figures
Gun manufacturer Smith & Wesson saw a huge surge in its share price as it hit an all-time high after the FBI released information that background checks in July had also beat previous records.
Smith & Wesson, the nation’s second largest gun manufacturer, had shares close out the day in July at $30.36, up 3 percent for the day and beating the March all-time record of $29.37.
Similarly, the nation’s largest gun manufacturer, Sturm Ruger, also saw an explosive increase of sales that ended the day up 2 percent with a share price of $69.40 at the end of July. Smith & Wesson is feeling profitable enough that it recently donated $500,000 to a gun rights activist group fighting the new gun restrictions in Massachusetts.
Background checks rise dramatically in 2016
In July, the number of firearm background checks processed was 2,197,169, according to the National Instant Criminal Background Check System (NICS). This uptick in background checks represents 1,600,832 more than was processed in July 2015. The Guardian further notes that the July 2016 figure reveals there were 891,224 more background checks processed in July 2008, which was a few months before Barack Obama became president.
Smith & Wesson profits hit insane levels
Smith & Wesson announced early on this year that its annual profits reached $293.8 million, 50 percent higher than last year. Moreover, the gun manufacturer has seen a 200 percent increase in sales since Obama took office.
Not all background checks are equal
Firearm background checks mainly assist in monitoring the demand for guns and its impact on the market. A few caveats exist in measuring the statistics against those of gun sales. For one, not each and every background check results in the purchase of a firearm. Secondly, several guns can be purchased with just one background check. It’s those inconsistencies that must be taken into account.
The driving demand for firearms explained
Several mass shootings in the United States have played into fears that stricter laws on gun ownership are a very real threat. Congressional representatives are hard at work aiming to tighten laws that make it harder for people to purchase guns.
The last time a huge number of background checks was issued was in December of 2015, which tallied up to 3,314,594 checks processed. It was soon after the San Bernardino terrorist attack; 14 died and 22 were injured.
Other factors driving demand are terrorist attacks taking place domestically and abroad. Additionally, there are violent civilian and police shootings that are becoming commonplace in America’s cities.
Smith & Wesson M&P45 image courtesy of smith-wesson.com.