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Firearm Manufacturers Trade Down After April Decline In Background Checks

Firearm Manufacturers Trade Down After April Decline In Background Checks
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American Outdoor Brands Corp (NASDAQ: AOBC) traded lower on Monday and Sturm Ruger & Company Inc (NYSE: RGR) traded lower after the FBI released numbers showing a 20-percent month-over-month decrease in background checks conducted through the National Instant Criminal Background Check System

What Happened

April 2018 background checks showed a year-over-year increase and highest value for the month of April since 1998. Background checks in March were close to the record level for a single month. 

Why It's Important

Although there is a strong seasonality in background checks, the month-over-month decline in April was the highest since 2014, when they declined almost 30 percent. In the last three years, the decline was around 15 percent. Despite the month-over-month decline in April, background checks are already 7 percent higher in the first four months of 2018 than in the first four months of 2017.

What's Next

The decline in background checks typically continues in May, June and July, with the exception of 2016, when they ticked higher in June. The checks usually move higher in August and are the highest in the last two months of a year.

American Outdoor Brands Corp. was down 1.48 percent at the time of publication Monday. Sturm Ruger & Co. was down 0.43 percent. 

Related Links:

Background Checks Rise In February Amid Renewed Gun Debate

Dicks Sporting Goods Will No Longer Sell Assault-Style Rifles

Posted-In: FBI NCISNews Press Releases Best of Benzinga


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