Shares of U.S. firearms manufacturer Smith & Wesson Brands Inc SWBI shot higher in early trading Wednesday before cooling off a bit. A new stock repurchase program is behind the pop.
What Happened: Smith & Wesson's board authorized a new buyback of up to $50 million. The repurchases can be made on the open market, in block trades or in privately negotiated transactions from now until Sept. 19, 2024.
“With the bulk of our investment in the move of our headquarters and significant elements of our operations to Tennessee soon coming to an end, we intend to rebalance our capital allocation strategy towards returning excess capital to our stockholders. This stock repurchase program is a key element of that strategy," said Mark Smith, CEO of Smith & Wesson.
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SWBI Price Action: Smith & Wesson shares are up approximately 34% year-to-date. The stock traded as high at $12.30 following the announcement Wednesday morning before pulling back. Shares were up 1.61% at $11.96 at the time of publication, per Benzinga Pro.
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