Following Mass Shootings, Gun Stocks Are On The Rise

Stocks in the gun industry have risen this week, after a gunman killed more than 50 people in Las Vegas.

  • Sturm, Ruger & Co. jumped 3.5 percent on Monday. 
  • American Outdoor Brands Corp., which owns Smith & Wesson, climbed 3.2 percent. 

The shares were rising again Tuesday.

Gun sales commonly surge across the country in the weeks after mass shootings, such as in: 

  • Orlando, Florida (the Pulse Nightclub shooting)
  • San Bernardino, California (San Bernardino social services building shooting)
  • Newtown, Connecticut (the Sandy Hook Elementary School shooting)

Some of the purchases were likely by people looking for more protection, but others were due to customers worried that tougher gun laws could be on the way. 

That pushed them to buy before the window potentially closed. And gun maker stocks rise in anticipation of the higher sales.

After Republicans took control of the White House and Congress in November, gun owners were less worried about the government imposing more restrictions. That "resulted in a lack of urgency in gun buying," according to a recent research report.

The number of firearm background checks dropped 16 percent in December and has remained on a downward trend for most of 2017. 

Before the Las Vegas shooting, shares of both American Outdoor Brands and Sturm Ruger were down for the year versus a 12.5 percent gain for the S&P 500.


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