QUOTE AND NEWS
Motley Fool  10 hrs ago  Comment 
Gun sales are picking up as scrutiny hits the industry.
Motley Fool  Apr 6  Comment 
One produces guns and bullets. The other wants to make them obsolete. Which stock comes out ahead?
Motley Fool  Apr 1  Comment 
One of the leading gunmakers offers a discounted stock and a chance to buy future growth.
Benzinga  Mar 6  Comment 
Gun stocks veered from historical trends and sold off in the wake of the latest U.S. mass shooting. Two weeks after the Parkland, Florida massacre that left 17 dead, Vista Outdoor Inc (NYSE: VSTO) fell 10.2 percent, Sturm Ruger & Company Inc...
Benzinga  Mar 5  Comment 
What Happened Sturm Ruger & Company Inc (NYSE: RGR) and American Outdoor Brands Corp (NASDAQ: AOBC) were on the rise Monday after the Federal Bureau of Investigation reported both month-over-month and year-over-year increases in February firearm...
Clusterstock  Mar 4  Comment 
Investors are scrutinizing their ownership of gun stocks following the mass shooting in Parkland, Florida. Passive index funds, which power many retirement plans, are the largest shareholders in America's three major gunmakers, according to...
Motley Fool  Mar 4  Comment 
The industry is in a slump, but Remington's problems were unique to itself.
Motley Fool  Feb 25  Comment 
RGR earnings call for the period ending December 31, 2017.
Channel News Asia  Feb 22  Comment 
Shares of gunmakers American Outdoor Brands and Sturm Ruger & Company rallied on Thursday after U.S. President Donald Trump advocated tightening background checks for guns in response to last week's high school massacre in Florida.
CNNMoney.com  Feb 22  Comment 
Sturm Ruger on Wednesday reported double-digit drops in gun sales and earnings for the quarter and the year.




 
TOP CONTRIBUTORS

Sturm, Ruger & Company (NYSE: RGR) is one of the nation's biggest gun makers and produces pistols, revolvers, rifles, and shotguns. RGR primarily sells in the U.S. through its top four distributors. Foreign sales, primarily to law enforcement and government, comprise of less than 5% of RGR's total sales. RGR has benefited from an increased consumer desire for self defense but faces significant risk from increasing steel prices, an essential raw material for the company.

Business Growth

RGR sells its products through federally-licensed, independent wholesale distributors, and its four major customers in 2010 were Jerry’s/Ellett Brothers, Davidson’s, Lipsey’s, and Sports South. The major source of growth from 2009 to 2010 was an increase in retail demand. Sales of handguns, especially those purchased for self defense, showed strong growth.

Trends and Forces

Increased Consumer Desire For Self Defense

One of the main drivers of sales for Sturm, Ruger & Company is the increased consumer desire for self defense. In response, RGR has introduced new firearms related to self defense, including the LVP pistol. Although RGR has ramped up production over the past few years, the company still has a large backlog of orders.

Increasing Steel Price Raise Raw Material Costs

As the companies that buy and process steel are raising steel prices, the raw material costs for RGR have gone up. Despite the fluctuating steel prices, RGR does have enough materials in its inventory to provide enough time to locate and obtain additional materials at the current market cost without interrupting its its manufacturing operations

Competition

Sturm, Ruger & Company competes with companies that manufacture firearms for the consumer and government markets.

  • Smith & Wesson Holding (SWHC) Smith & Wesson is a company that firearms including pistols, revolvers, rifles, handcuffs, and accessories. Its customers include individuals desiring self defense, law enforcement, and military agencies.[1]
  • Stinger Systems Inc (STYS) Stinger Systems manufactures electronic stun devices that provides temporary immobilization of dangerous persons. Its products include electrified riot shields and a projectile stun guns.[2]

References

  1. Hoover's SWHC
  2. Hoover's STYS
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