Shares of gun plus ammunition companies jumped Wed over speculation of new weapon control laws in the wake of Tuesday’s horrific mass shooting that killed at least 19 children and two teachers at a Texas elementary college. Investors anticipate increased sales ahead of calls for stricter gun laws by Democrats.
As of Wed afternoon, Smith & Wesson Inc. and Vista Outdoors Inc. were both up around 10%, American Outside Brands Inc. +6. 5%, Sturm Ruger & Company. +5. 5%, and Ammo Inc. +5%.
Gun makers’ shares generally rise when Democrats demand stricter gun control actions after mass shootings because people buy on the concern that more rules might make owning a gun harder or even costlier. This was the case in 2012 when gun sales jumped after the shooting in Newtown, Connecticut, at Sandy Catch school.
Search trends for “ buy a gun” immediately erupted Tuesday evening after the shooting at the elementary school in Uvalde, Texas.
Even though Democrats and President Biden have vowed to get tough on weapons, Senate Majority Leader Charles Schumer (D-N. Y. ) was out Wednesday, indicating new gun control measures would be hard to pass simply because there isn’t enough Republican support. Still, some fear the Biden administration will get difficult on guns via professional fiat.