SWBI is on track for its worst day in two years after fiscal second-quarter results missed estimates
Shares of Smith & Wesson Brands Inc (NASDAQ:SWBI) are plummeting this morning, after the firearm manufacturer's fiscal second-quarter earnings and revenue missed estimates. The company also issued a disappointing current-quarter outlook.
In response, Craig-Hallum downgraded the stock to "hold" from "buy," with a price-target cut to $13 from $18. This marks the second downgrade SWBI has received in the last month -- with two of the three analysts in coverage now carrying a "hold" rating.
At last glance, SWBI was down 20% at $10.91 and trading at 52-week lows. On track for its worst single-session loss since Dec. 2021, today's drop has the stock careening into negative territory for the year.
Smith & Wesson stock's typically quiet options pits are bustling this morning. So far, 4,008 calls and 2,541 puts have been exchanged, which is already 13 times the stock's average daily options volume. The March 11 call is the most popular contract, with new positions being bought to open there.