Jonah Bennett
President Barack Obama’s impeding executive action on gun control has caused an insane spike in gun sales, according to data from manufacturer Smith & Wesson.
In fact, the sales have been so explosive that merchants are having a difficult time keeping guns in stock, the company notes. While the Dow Jones Industrial Average tanked by 1.6 percent, gun companies posted stock increases. Smith & Wesson shares finished Monday at 5.9 percent higher. Sturm Ruger, a competitor of Smith & Wesson, posted gains of 2.9 percent.
Some analysts speculate that there’s a definite link between Obama’s expected gun control announcement and increased sales, a trend which has periodically repeated itself through the Obama’s two stints in the White House. Smith & Wesson confirmed in a press release that demand has shot through the roof since Obama took office in 2009.
“We experienced strong consumer demand for our firearm products following a new administration taking office in Washington, D.C., in 2009,” Smith & Wesson said.
Data elsewhere from the FBI also support a year-long increase in gun sales, as the number of background checks reached a record high in 2015. Black Friday, in fact, saw the largest number of background checks in history. This counts as a decent proxy for gun sales.
Management at Smith & Wesson released data Monday evening predicting an uptick in sales from between $175 to $180 million, a shift upward from earlier expectations of $150 to $155 million, Business Insider reports.
Analysts are stunned at the surge and now think that earnings per share will end up as high as $0.41, rather than prior estimations of just $0.29.
Overall, Smith & Wesson stock is up 733% since 2012.
According to The Associated Press, Obama’s plan apparently includes an expansion of background checks in arenas to which they previously did not extend, namely at gun shows. The administration wants to push more unregistered sellers, who normally sell online or at gun events, to sign up as federally licensed gun dealers.
The executive action also reportedly will increase the number of inspections of gun dealers.
Obama insisted that his plan enjoys wide support from the majority of Americans and also falls within the purview of his executive authority.
Republicans have bashed what they’re calling encroachment on the Second Amendment.
GOP presidential candidate Donald Trump told CNN on Monday during an interview that, “Pretty soon you won’t be able to get guns. It’s another step in the way of not getting guns.”
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