The Middletown Press (Middletown, CT)
Gun sales soar in March on fears of new regulations
Gun sales soared last month: 2,767,699 federal background checks for firearms purchases were run, the highest March number since the FBI began releasing data in 1998.
While there is no exact data on firearms purchases in the U.S., the FBI’s National Instant Criminal Background Check System is used as a barometer for gun sales. Adjusted for permit checks, such as concealed-carry applications, March checks were up 10.8 percent from the previous year, totaling 1,503,967. Handgun checks increased 3.9 percent, while long gun checks increased 17.3 percent.
The strong background check data sent shares of some publicly traded firearms companies climbing. Shares of Sportsman’s Warehouse, an outdoor sporting goods retailer, soared following the background check data release. Vista Outdoor also saw gains; American Outdoor Brands (formerly known as Smith & Wesson) and Sturm Ruger, however, saw small declines after an initial rally.
The industry has faced slowing sales and dwindling stock prices since the 2016 election. Under a Republican president and Congress, the risk of guncontrol legislation was minimal, and fear-based buying stalled.
Following a mass shooting at a Parkland, Fla., high school in February, a nationwide gun control debate has been under way. Congress advanced some firearm regulation measures last month, and the White House backed a bump stock ban.
Rommel Dionisio, a managing director of equity research at Aegis Capital who focuses on publicly traded firearms companies, said March’s background check numbers confirms the gun industry is showing signs of a rebound.
“The March data confirmed the reemergence of fear-based buying,” KeyBanc Capital Markets analyst Brett Andress wrote in a note sent Tuesday morning. “The primary tell being the more politically sensitive long guns rising 17.3 percent.”
In February, long-gun checks were up 3 percent nationwide.
James Hardiman, an analyst at Wedbush Securities Inc., a securities firm and investment bank, also noticed the long gun uptick. The rise, he wrote in a note, confirms that “the increased buying activity is largely due to the heightened talk of gun regulation following February’s tragic shooting in Florida.”