Crypto Whales Are Loading Up — Are You?
New research shows the biggest crypto buyers are back. And this time? They could hold for the possibility that Bitcoin will surpass $100,000 in 2024. You don’t want to miss the next massive crypto bull run like we saw in 2020 and 2021. To know exactly what’s going on and what to buy… Get Access To Benzinga’s Best Crypto Research and Investments For Only $1.
Soon after it announced its intention to acquire Taylor Brands LLC, Smith & Wesson Holding Corp (NASDAQ: SWHC) announced on July 25 that it had reached a definite agreement to acquire Crimson Trace.
Wunderlich’s Rommel Dionisio maintains a Buy rating on Smith & Wesson, with a price target of $34.
ENTER TO WIN $500 IN STOCK OR CRYPTO
Enter your email and you'll also get Benzinga's ultimate morning update AND a free $30 gift card and more!
The Deal
Dionisio mentioned that Crimson Trace is an industry leader in the rapidly growing laser sighting and targeting systems category for firearms.
“This acquisition is not only expected to be accretive to FY17 EPS, but also further diversifies the company’s product portfolio in the outdoor recreational and sporting goods sector,” the analyst stated.
The total purchase price is $85 million, with Smith & Wesson utilizing cash on hand to fund the deal.
FREE REPORT: How To Learn Options Trading Fast
In this special report, you will learn the four best strategies for trading options, how to stay safe as a complete beginner, a 411% trade case study, PLUS how to access two new potential winning options trades starting today.Claim Your Free Report Here.
Future Accretion
Crimson Trace’s trailing 10-year sales CAGR was more than 10 percent, while its trailing 12-month revenue was $44 million, about 25 percent of which is contributed by Smith & Wesson, since the latter company features Crimson Trace’s laser sights in its Bodyguard line of concealed carry handguns.
Diosinio pointed out that this transaction, therefore, also includes “an element of vertical integration.”
While the acquisition is expected to be accretive to the FY17 EPS, longer term, the analyst believes that Crimson Trace could “significantly benefit from Smith & Wesson’s powerful distribution platform of distributors, firearms dealers, and sporting goods retailers.”
The FY17 revenue and EPS estimates have been raised to reflect the Crimson Trace acquisition.
Full ratings data available on Benzinga Pro.
Did you like this article? Could it have been improved? Please email feedback@benzinga.com with the story link to let us know!Crypto Whales Are Loading Up — Are You?
New research shows the biggest crypto buyers are back. And this time? They could hold for the possibility that Bitcoin will surpass $100,000 in 2024. You don’t want to miss the next massive crypto bull run like we saw in 2020 and 2021. To know exactly what’s going on and what to buy… Get Access To Benzinga’s Best Crypto Research and Investments For Only $1.