ADVERTISEMENT
ADVERTISEMENT

Gun stocks are soaring after the deadliest mass shooting in modern US history (AOBC, RGR)

American Outdoor Brands and Sturm, Ruger and Co. rallied nearly 4%.

Shares of major gun manufacturers rose in trading Monday following the deadliest mass shooting in modern US history.

At least 59 people were killed and 527 were injured in the shooting Sunday night in Las Vegas. A gunman identified as Stephen Paddock opened fire from the 32nd floor of the Mandalay Bay Resort and Casino, aiming into a tightly packed crowd of thousands of people who were watching a country music festival, the police said.

American Outdoor Brands (formerly Smith & Wesson) and Sturm, Ruger & Co. rallied by more than 4%.

Gun stocks tend to rally after mass shootings. Heightened conversation about potential gun-control legislation raises speculation that people would want to buy firearms sooner rather than later before any regulations could be tightened. In its annual reports, American Outdoor Brands has told investors several times that "speculation surrounding increased gun control at the federal, state, and local level and heightened fears of terrorism and crime" can affect demand for its products.

ADVERTISEMENT

Gun sales have been on the decline since last year's US election, according to several manufacturers and the FBI's database of background checks that serves as a proxy. Purchases reached a record last year, but President Donald Trump's surprise victory eased concerns that regulations would be tightened.

American Outdoor Brands fell 46% from the election through Friday's market close, while Sturm Ruger was down 19%.

JOIN OUR PULSE COMMUNITY!

Unblock notifications in browser settings.
ADVERTISEMENT

Eyewitness? Submit your stories now via social or:

Email: eyewitness@pulse.ng

Recommended articles

Here's everything to know about being a virgin on your wedding night

Here's everything to know about being a virgin on your wedding night

7 do's and don’ts of the Holy month of Ramadan

7 do's and don’ts of the Holy month of Ramadan

Top 5 sweetest celebrity mother-child relationships that stand out for us

Top 5 sweetest celebrity mother-child relationships that stand out for us

International Women's Day: 5 Nigerian female celebrities championing women’s rights

International Women's Day: 5 Nigerian female celebrities championing women’s rights

Top 5 female directors in Nollywood

Top 5 female directors in Nollywood

6 things that will break a Muslim's fast during Ramadan

6 things that will break a Muslim's fast during Ramadan

5 benefits of fasting during Ramadan

5 benefits of fasting during Ramadan

5 reasons Easter was more fun when we were children

5 reasons Easter was more fun when we were children

Dos and don’ts of supporting Muslims during Ramadan

Dos and don’ts of supporting Muslims during Ramadan

ADVERTISEMENT
ADVERTISEMENT