Sturm Ruger stock holds steady as Aegis Capital reiterates $48 price target

Published 04/08/2025, 16:38
Sturm Ruger stock holds steady as Aegis Capital reiterates $48 price target

Investing.com - Aegis Capital has reiterated its Hold rating and $48.00 price target on Sturm Ruger (NYSE:RGR), citing solid new product contribution despite industry headwinds. The stock, currently trading at $32.83, shows significant upside potential according to InvestingPro analysis, which reveals the company maintains a 17-year track record of consistent dividend payments.

The firearms manufacturer reported a 4% decline in unit sell-through from independent distributors to retailers in the second quarter, matching the overall industry decline in NICS background checks. New products launched within the past two years accounted for 34% of firearm sales in Q2, up from 32% in Q1. Despite industry challenges, InvestingPro data shows the company maintains strong financial health with a current ratio of 3.96x and minimal debt exposure.

Sturm Ruger has increased its market share in recent years despite not aggressively matching competitive promotional activity. Successful recent product launches include the RXM pistol, Marlin 1894 lever-action rifles, the Super Wrangler revolver, and the American Centerfire Rifle Generation II.

The company’s new CEO has indicated plans to increase future support for capital expenditures, marketing investments, and product development to accelerate new product launches. These initiatives could potentially drive continued market share gains for the firearms manufacturer.

Earlier this month, Sturm Ruger acquired Anderson Manufacturing, a privately held manufacturer of firearms and firearm accessories based in Kentucky, for $16.4 million in cash. The acquisition provides the company with greater production capacity, expanded product offerings, and additional experienced personnel. For detailed analysis of this acquisition’s potential impact and access to 14 additional ProTips, explore the comprehensive research available on InvestingPro.

In other recent news, Sturm Ruger & Company Inc. reported its Q2 2025 financial results, which showed a mixed performance. The company posted adjusted diluted earnings per share (EPS) of $0.41, falling short of the $0.51 forecast by analysts, resulting in a 19.61% negative surprise. However, Sturm Ruger exceeded revenue expectations by reporting $132.5 million in revenue, surpassing the projected $121.99 million and marking an 8.62% positive surprise. These developments reflect the company’s varied financial performance during the quarter. Analysts had anticipated different outcomes, leading to mixed investor reactions. The earnings miss was notable, but the revenue beat provided a counterbalance to the overall financial picture. The company’s financial results highlight the importance of monitoring both earnings and revenue figures in assessing its performance. This earnings report is part of recent developments concerning Sturm Ruger.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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