Gunmakers such as Smith and Wesson and Strum, Ruger and Company are getting hammered on Monday after the FBI reported lower than expected permit activity in March.
According to the FBI’s National Instant Criminal Background Check System, the number of background checks performed for firearms dropped by a little less than 100,000 from the prior month. This represents a drop of approximately 3%.
While these checks do not necessarily indicate a sale has been made, they can approximate the movement of sales.
Additionally, Smith and Wesson was downgraded by analysts at BB&T Capital Markets, Cowen and CL King. BB&T analysts cited trading activity by executives and a limited sales upside.
Shares of Smith and Wesson are down more than 16% for the day, around $23.30 a share. Ruger is down around 9.5% at $64.76.