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Sturm, Ruger & Company, Inc. (NYSE:RGR), a renowned firearms manufacturer, has announced amendments to its by-laws that could significantly impact shareholder actions. On Monday, the company’s Board of Directors approved changes to the by-laws that now allow shareholders to take action without holding a meeting, provided they have written consent from enough stockholders to meet the minimum voting requirements that would be necessary at a meeting.
Previously, the company’s by-laws permitted shareholder actions by written consent only if all shareholders entitled to vote on the matter provided their signature. The updated by-laws, effective as of May 5, 2025, streamline the process, enabling actions to be taken if the written consents represent the minimum number of votes needed for such actions at a meeting where all voting shares are present and voted. The company’s commitment to shareholder value is further evidenced by its 17-year track record of consistent dividend payments, currently yielding 2.04%.
This change, detailed in the Amended and Restated By-Laws, reflects a growing trend among corporations to facilitate more flexible shareholder decision-making processes. The amendment could potentially allow for swifter shareholder responses to company decisions and more streamlined implementation of actions that require shareholder approval. Trading near its 52-week low, InvestingPro analysis suggests the stock is currently undervalued, with eight additional ProTips available for subscribers interested in deeper insights into the company’s financial position.
Investors and market watchers may view this development as a positive step towards enhancing shareholder engagement and simplifying corporate governance procedures. With a healthy current ratio of 4.62 and sufficient cash flows to cover interest payments, the company maintains a strong financial position. The full text of the Amended and Restated By-Laws has been included as Exhibit 3.1 in the Form 8-K filed with the SEC on May 9, 2025, and is incorporated by reference into this report. For a comprehensive analysis of RGR’s financial health and growth prospects, access the detailed Pro Research Report available exclusively on InvestingPro.
The information disclosed in this article is based on the company’s recent SEC filing.
In other recent news, Sturm Ruger & Company reported its financial results for the first quarter of 2025, revealing a shortfall in both earnings and revenue compared to analyst expectations. The company posted earnings per share of $0.46, missing the forecasted $0.67, and revenue came in at $135.7 million, below the anticipated $148.6 million. These results represent a significant deviation from analyst projections. Despite the revenue shortfall, the company improved its diluted earnings per share from $0.40 in Q1 2024 to $0.46 in Q1 2025. The company’s gross margin increased from 21.5% to 22%, driven by favorable leveraging of fixed costs. Sturm Ruger remains debt-free with a strong balance sheet, holding $108 million in cash and short-term investments. The company plans to increase capital expenditures significantly, with expectations exceeding $30 million in 2025. Looking forward, Sturm Ruger is focusing on aggressive new product launches and expanding its product platforms to capture market share during the industry downturn.
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