Why AMMO Stock Is Shooting Higher Today

AMMO Inc POWW is trading significantly higher Wednesday after the company announced better-than-expected financial results. 

What Happened: AMMO Inc reported quarterly earnings of 4 cents per share, which beat the estimate for a loss of 1 cent per share. The company reported quarterly revenue of $24.2 million, which beat the estimate of $23.95 million. 

"Demand fundamentals in the US domestic ammunition market are exceedingly strong and we are seeing no indication of slowing," the company said.

The ammunition manufacturer broke ground on a new plant, which it expects to be fully operational in approximately one year.

Roth Capital analyst Matt Koranda maintained AMMO with a Buy rating and raised the price target from $9 to $11.

Price Action: AMMO reached a new 52-week high at $10.37 today before pulling back slightly. 

At last check Wednesday, the stock was up 11.30% at $9.78.