The stock of Smith & Wesson Brands, Inc. (NASDAQ:SWBI) is now priced at $24.39 and the shares are -0.25 points down or -1.01% lower compared to its previous closing price of $24.64. The stock had 1.388 million contracts set over the past session. SWBI shares’ daily volume is compared to its average trading volume at 2.142 million shares. However, it has a float of 53.97 million and although its performance was 5.04% over the week, it’s one to watch. Analysts have given the SWBI stock a yearly average price target of $23.33 per share. It means the stock’s downside potential is -4.35% with the SWBI share price recently placing at $23.13 to $24.66. However, some brokerage firms have priced the stock below the average, including one that has called $22.

The shorts are climbing into the Smith & Wesson Brands, Inc. stock, with the latest data on short interest released on July 15, 2020, showing that short interest numbers in the SWBI shares have risen. Short interest in the stock represents just 6.92% of its float, but the volume has raised by 819614. The volume of shorted shares rised to 3.734 million from 2.914 million shares over the last two weeks. The average intraday trading volume has been 2.762 million shares, which means that days to cover moved to roughly 1.35183.

In the last trading session, Smith & Wesson Brands, Inc. (NASDAQ:SWBI) raised by $1.17 over the week and gained $2.44 on its 20-day. The stock’s high in the recent session is lower when compared to its 52-week high of $25.17. The stock recorded its established 52-week high on 07/28/20.

Since 10/03/19, the stock has traded to a low of $5.41 at 350.83%, an encouraging piece of data likely to interest most investors out to exploit the stock’s recent surge. The stock has a beta allocation of 0.82. Being above 1 means that the stock’s volatility is higher than the market and traders are keenly watching it.

Looking at current readings, Smith & Wesson Brands, Inc.’s two-week RSI is 65.26. This suggests that the stock is neutral at the moment and that SWBI shares’ price movement remains stable. The stochastic readings are equally revealing at 84.91% meaning the SWBI share price is currently in oversold territory.

The technical chart shows that the SWBI stock will likely settle at between $24.99 and $25.59 per share. However, if the stock dips below $23.46, then its market would become much weaker. Any downside could see the stock price sliding to levels as low as $22.53.

Currently, the stock is trading in the green of MACD, with a reading of 0.82. Investors always pay attention to any move above or below the zero-line, mainly because the indicator points to the position of the stock’s short-term average relative to its long-term measure. A MACD -a reading above the zero line means that the short-term is above the long-term average. This scenario implies that there is an upward momentum. The opposite is true when the MACD falls below the zero-line.

Analysts at Lake Street though raised target price of SWBI stock from $24 to $28 but maintained Buy recommendation in their July 08 review.

The average rating for the SWBI equity is 2.5 and is currently gathering a bullish momentum. Of 4 analysts tracking Smith & Wesson Brands, Inc. polled by Reuters, 2 rated SWBI as a hold. The remaining 2 analysts were split evenly. However, the split wasn’t equal as a majority (2) rated it as a buy or strong buy. 0 analyst advised investors against buying the stock or to sell if they own any of the stock.

Elsewhere, the SWBI stock price is 21.03X ahead of its 12-month Consensus earnings per share estimates. The stocks P/S ratio currently stands below the group’s average of 30. Smith & Wesson Brands, Inc. has its P/E ratio at 3.5, which means that the stock is currently trading at a discount relative to the 5.4 industry average.

Zacks Consensus Estimate forecasts that the current-quarter revenues for Smith & Wesson Brands, Inc. (NASDAQ:SWBI) will decrease by about -99.91%, which will see them reach $206.98 million. The company’s full-year revenues are, however, expected to increase by about 24.81%, up from $678.39 million to $846.73 million. SWBI’s expected adjusted earnings should surge almost 1333.33% to end up at $0.43 per share, while for the fiscal year, analysts project the company’s earnings to grow by about 97.56% to record $1.62/share.

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