Sturm, Ruger Sees Significant Drop in Short Interest for December

Sturm, Ruger & Company, Inc. (NYSE:RGR) experienced a notable decline in short interest for December 2023. As of December 31, the short interest totaled 1,008,066 shares, marking a 21.1% decrease from the 1,277,059 shares reported on December 15. This reduction indicates that approximately 6.6% of the company’s shares are currently sold short. Given the average daily trading volume of 563,432 shares, the days-to-cover ratio stands at 1.8 days.

In a separate analysis, Weiss Ratings reaffirmed a “sell (d+)” rating for Sturm, Ruger on December 29. Currently, one analyst has assigned a sell rating to the stock, contributing to an overall average rating of “sell,” according to MarketBeat.com.

Latest Financial Performance

On November 5, Sturm, Ruger released its quarterly earnings, revealing an earnings per share (EPS) of $0.10. This figure fell short of analysts’ consensus estimate of $0.36 by $0.26. The company reported quarterly revenue of $126.77 million, surpassing the consensus estimate of $124.22 million. The firm’s net margin stood at 0.48%, with a return on equity of 8.76%. Year-over-year, the company’s revenue increased by 3.7%, compared to the same quarter in the previous year when it earned $0.28 per share.

Analysts anticipate that Sturm, Ruger will post an EPS of $2.31 for the current fiscal year.

Dividend and Institutional Investments

In November, Sturm, Ruger announced a quarterly dividend of $0.04, which was paid on November 28. This dividend reflects an annualized payment of $0.16 and a yield of 0.4%. The company’s dividend payout ratio (DPR) currently stands at 123.08%, indicating a high level of payout relative to its earnings.

Several institutional investors have recently adjusted their stakes in Sturm, Ruger. Notably, UBS Group AG increased its holdings by 31.1% during the third quarter, acquiring an additional 122,111 shares to reach a total of 514,510 shares, valued at approximately $22.37 million. Similarly, Two Sigma Investments LP boosted its holdings by 118.7%, now owning 198,936 shares valued at $8.65 million.

Other significant movements include AQR Capital Management LLC, which raised its stake by 239.4%, and Russell Investments Group Ltd., which increased its holdings by 2,446.1% during the same period. Hedge funds and institutional investors collectively hold 64.00% of Sturm, Ruger’s stock.

Sturm, Ruger & Company, Inc., established in 1949 by William B. Ruger and Alexander McCormick Sturm, is a prominent American designer and manufacturer of firearms. Headquartered in Newport, New Hampshire, the company is known for its precision engineering and durable products, with manufacturing facilities in Newport and Mayodan, North Carolina. Its diverse product line includes a wide range of small arms such as centerfire and rimfire rifles, shotguns, semi-automatic pistols, revolvers, and various accessories.