Following Trump’s presidential win, gun stocks took a dive.
Immediately following Trump’s presidential win, gun stocks began to fall. Two prominent companies had notable declines: both Smith & Wesson and Sturm Ruger saw the value of their shares drop by 11.55% to $25.17 and by 12.60% to $56.20, respectively.
According to reports, Sturm Ruger’s quarterly earnings report showed a stronger-than-normal demand during the summer. This likely a result political campaigning for the presidential election.
Experts believe there could be decrease in short-term gun demand following Trump’s presidential win, meaning potential gun buyers are less concerned with potential Second Amendment regulations and therefore less likely to stock up on guns.
Wunderlich Securities Analyst Rommel Dionisio spoke about Clinton’s expected impact, had she won, telling reporters:
“Typically the fear of such legislation prompts a near term surge in consumer demand for those types of firearms, as consumers flock to stores to stock up on such firearms before the ban is potentially enacted. Naturally with the Trump victory, such consumer fears would subside, so there will likely be no near-term demand surge any time soon for firearms.”
Conversely, on the campaign trail, Trump told Americans, “The right of the people to keep and bear arms shall not be infringed upon. Period.”
Smith & Wesson has also announced it will change its name to American Outdoor Brands in a effort to distance itself from gun violence.