On March 24 a student-led demonstration took place in Washington, D.C. calling for national gun control in the wake of the Stoneman Douglas High School shooting in Parkland, Florida. Reportedly the protest attracted over 1 million participants across the United States, and those gathering plan to use the enthusiasm to throw their weight around in the upcoming midterms.
The 200-year old gun manufacturer Remington recently filed for bankruptcy and on March 28 was granted a $75 million loan from a bankruptcy judge. Reportedly Remington was turned down by over 30 potential lenders in the wake of the shooting. The recent loan granted will allow Remington to carry itself through Chapter 11 bankruptcy and carry out a debt-cutting deal worth over $775 million.
Other firearms manufacturers have fared poorly in the wake of the shooting and public outcry. American Outdoor Brands Corp. (NASDAQ:AOBC), which manufactures the AR-15 among others, has seen its stock fall 22.9% in 2018 thus far. Shares were up 3.89% in early afternoon trading on March 29.
Sturm Ruger & Co. Inc. (NYSE:RGR) is a Southport-based firearms manufacturer. Its stock has plunged 10.1% in 2018 thus far but shares were up 5.38% in early afternoon trading on March 29.
Overall firearm sales have actually stagnated since the election of President Donald Trump, but the threat of more gun legislation has boosted sales in previous cycles. When Trump vowed to ban bump stocks in late February gun sales shot up. The threat of a Democratic landslide in the upcoming midterms, and subsequent gun legislation reform, is likely to push sales up in the latter half of 2018, which could be a boost for firearm stocks.
