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Gun Stocks Trade Higher In Wake Of Las Vegas Shooting

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Gun Stocks Trade Higher In Wake Of Las Vegas Shooting
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In the wake of the most deadly mass shooting in U.S. history in Las Vegas on Sunday night, investors once again seem concerned that the topic of gun control laws will be back in the headlines.

Shares of gun stocks American Outdoor Brands Corp (NASDAQ: AOBC), Sturm Ruger & Company Inc (NYSE: RGR) and Olin Corporation (NYSE: OLN) each traded higher by at least 3 percent on Monday, suggesting the companies may experience an uptick in buying due to widespread fears among gun enthusiasts.

Fearful Gun Buyers

Gun buyers are notoriously fearful of Washington, particularly following mass shooting events such as Sunday’s tragedy in Las Vegas that left at least 50 people dead and 500 others wounded.

These types of events tend to renew interest in gun control laws in Washington, and gun buyers tend to stockpile guns in response to fears over potential regulatory restrictions, boosting gun makers’ profits and sending gun stocks higher. In the week following five deadly shootings from mid-2015 to mid-2016, Sturm Ruger stock averaged a 4 percent gain, while American Outdoor, then known as Smith & Wesson, delivered an average gain of 8.9 percent.

Washington Responds

Gun stock traders will be watching closely for the political response from Washington in coming weeks, and any chatter of gun control may boost shares even higher. Former Democratic presidential nominee Hillary Clinton already took the opportunity to call out the National Rifle Association on Twitter, asking followers to “Imagine the deaths if the shooter had a silencer, which the NRA wants to make easier to get.”

Gun stocks plummeted after Donald Trump won the 2016 election as Americans viewed a Trump White House and a Republican Congress as no threat to existing gun laws.

Related Link: The Massacre In Las Vegas: Everything We Know

Posted-In: Gun Stocks Las VegasLong Ideas News Events Top Stories Movers Trading Ideas Best of Benzinga

 

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