Sturm, Ruger & Co. hit new high on 1st-qtr orders
Associated Press – 39 minutes ago
NEW YORK (AP) -- Shares of Sturm, Ruger & Co. and Smith & Wesson Holding Corp. soared Thursday, a day after Sturm Ruger said it received orders for more than a million firearms in the first quarter of this year.
THE SPARK: The Southport, Conn.-based company said it received so many orders that it was temporarily suspending acceptance of new ones.
It credited the jump to company programs in January and February with boosting retailer and distributor demand for Ruger firearms.
THE BIG PICTURE: Sturm, Ruger & Co. makes firearms for the commercial sporting market. Its products include rifles, revolvers and pistols.
The company said that despite attempts to increase production, the rate of incoming orders has exceeded its capacity to fill them on a timely basis. So it was forced to put new orders on hold. It expects to resume accepting orders by the end of May.
THE SHARES: Sturm Roger stock rose $5.63, or 13.3 percent, to close at $47.93. The stock peaked at an all-time high of $48.24 earlier in the day, topping the previous high of $46.68 set in February.
Since the beginning of this year, Sturm, Ruger & Co. shares have gained about 43 percent.
Shares of gun maker Smith & Wesson Holding Corp. rose 78 cents, or 11.3 percent, to close at $7.68, in heavy trading. Earlier, the stock jumped to $8, its highest price since December 2007.
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