Sturm Ruger (NYSE:RGR) news for Monday includes RGR stock heading higher as riots continue across the U.S.
So what exactly do riots and Sturm Ruger have to do with each other? Well, Sturm Ruger is a maker of firearms. With the unrest going on in the country, it only makes sense that more Americans are preparing for the worst and buying guns.
It’s worth noting that firearm sales were already increasing during the lockdowns caused by the novel coronavirus. The FBI reported background checks for guns are up 31.5% compared to the same time last year. With the riots taking place during these lockdowns, it looks like more gun sales are likely.
With that in mind, investors are picking up shares of RGR stock in hopes of benefiting from the increasing gun sales. That increasing trade volume is what has the stock on the rise today, reports The Motley Fool.
Sturm Ruger isn’t the only gun company that is benefiting from this news. American Outdoor Brands (NASDAQ:AOBC), formerly Smith & Wesson, is also seeing its stock gain greatly today. The company is set to benefit just like Strum Ruger from an increase in gun sales.
With no end in sight to the riots and coronavirus lockdowns, it looks like Sturm Ruger and American Outdoor Brands are likely to see increasing gun sales over the next few months. It’ll be interesting to see this reflected in their upcoming earnings reports.
RGR stock was up 9.4% and AOBC stock was up 9.6% when markets closed on Monday.
