A massacre at Stoneman Douglas High School in Parkland, Florida saw 17 people die at the hands of a lone gunman. The shooting has reignited a firearm debate in the United States. On Tuesday, February 20, President Trump directed Attorney General Jeff Sessions to craft regulations to ban firearm modifiers. This includes “bump stock” devices, which were used by the gunman in the Las Vegas massacre in October 2017.
American Outdoor Brands Corp. (NASDAQ:AOBC) is a Nevada corporation that manufactures firearms, including handguns, sporting rifles, hunting rifles, and other related products. The stock has fallen over 5% since close on February 16. Shares have dropped 20.7% in 2018 and 47% year over year. The company is set to release its fiscal 2018 third quarter results on March 1.
The Florida teachers’ pension plan held 41,000 shares in American Outdoor Brands, which manufactures the AR-15 semi-automatic rifle that was used in the Parkland shooting.
Sturm Ruger & Company Inc. (NYSE:RGR) was up 0.62% at the bottom of the noon hour on February 21. The stock has dropped 3% since close on February 16. Shares have declined 12.7% in 2018 thus far. Sturm & Ruger also manufactures the AR-15 semi-automatic rifle, which has been the target of campaigners for firearm law reform in the aftermath of the shooting.
The fall in gun stocks also comes in the wake of Remington Outdoor Co., a 200-year old American firearms manufacturer, filing for bankruptcy. With of the 2018 midterms looming in the U.S., the firearm industry could face the threat of big changes moving forward.
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