Market Overview

How Do Gun Stocks Respond In The Days And Weeks After Mass Shootings?

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How Do Gun Stocks Respond In The Days And Weeks After Mass Shootings?

Shares of gun makers Smith & Wesson Holding Corp (NASDAQ: SWHC), Sturm, Ruger & Company (NYSE: RGR), TASER International, Inc. (NASDAQ: TASR) and Vista Outdoor Inc (NYSE: VSTO) are all surging on Friday following the tragic shooting of five police officers in Dallas.

Unfortunately, headlines about mass shootings have become all too familiar in the United States, and the trading trends following the events have been relatively predictable. Benzinga took a look back at how Smith & Wesson and Sturm, Ruger have performed one week and one month after the five of the most recent mass shootings:

  • The Orlando nightclub shootings on June 12, 2016
  • The San Bernardino shootings on December 2, 2015
  • The Colorado Springs Planned Parenthood shootings on November 27, 2015
  • The Umpqua Community College shootings on October 1, 2015
  • The Chattanooga, Tennessee, shootings on July 26, 2015

Related Link: Gun Control Social Chatter Reaches Historic High

Not surprisingly, the stocks have delivered huge returns following the shootings, as buyers rush to stockpile guns in fear of changes to gun laws as a result of the incidents. In the week following the five shootings, Sturm, Ruger stock has delivered an average gain of 4.0 percent, while Smith & Wesson has averaged a staggering 8.9 percent gain.

If history is any indication, the stocks won’t give back Friday’s gains anytime soon either. In the one month following the shootings, Sturm, Ruger has delivered an average gain of 8.7 percent, while Smith & Wesson stock has surged an average of 16.1 percent.

Disclosure: The author holds no position in the stocks mentioned.

 

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