The cornerstone of Obama’s executive actions is a background check requirement for guns purchased from dealers even if they’re bought online or at gun shows.
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Smith & Wesson’s trading update said that for the three months ending 31 January it expected sales to be about $175m-$180m.
Under the changes, the US Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) is issuing guidelines meant to narrow exceptions to a system that requires sellers to check with the Federal Bureau of Investigation to determine whether buyers have criminal records, are charged with crimes or have mental health conditions that would bar them from owning a gun. The latter needs to source at least 500,000 new guns in 2017.
During December, the adjusted background checks were up 38% from the same month in 2014.
On Monday, the biggest domestic gun manufacturer by sales, Smith & Wesson Holding Corp. raised its current quarterly revenue and profit projections for the fiscal year. That accounts for about 62 percent of background checks.
Former Congresswoman and gun control advocate Gabby Giffords, who was seriously injured in a 2011 mass shooting, was also in attendance at Tuesday’s event and was greeted with a standing ovation from the White House audience.
The data is incontrovertible: under President Obama, the production of firearms in the United States has increased from less than 4.5 million units to over 10.8 million units, an increase of 140%. This boosts demand from gun enthusiasts in the short term.
Republicans in Congress and on the presidential campaign trail blasted Obama’s executive action Tuesday and vowed to fight it in the courts or repeal the moves altogether.
The mother of a child killed in the Sandy Hook shooting said she is “proud” of President Obama for tightening gun controls.
Wedbush Securities analyst James Hardiman cut his rating on Smith & Wesson Holding Corp.
Sturm, Ruger & Company (NYSE:RGR)-a competitor-also bore the news’ impact. Competitor Sturm Ruger saw its share rise 2.9% to a 52-week high.
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“In the wake of the President’s vow to “politicize” shootings, it’s hard to see today’s announcement as being about more than politics”, he said. Fears of domestic terrorism accelerated gun sales with the most popular guns being ‘concealed carry, ‘ reports Motley Fool. Gun sales were down as Obama focused less on gun control than he had in the immediate aftermath of Sandy Hook. Following the completion of the transaction, the director now directly owns 6,802 shares of the company’s stock, valued at $149,780.04.
