The small cap stock for firearm maker Smith & Wesson Holding Corporation was down by double-digit percentage points on Wednesday after the stock was downgraded as part of a sweeping hit on all firearm companies, Bloomberg reports.
According to the news source, Smith & Wesson was riding high and nearly hit an all-time record earlier in the year as gun enthusiasts across the country feared President Obama would buckle down on gun laws if he is re-elected. Many analysts saw this huge surge in sales as unsustainable, which led them to downgrade the company's stock, as well as many other firearm makers.
Shares of gunmakers rose even higher after the Colorado theater shooting in July, which led to further talk of gun regulation and increased background checks
Analysts at Hamann downgraded the company's shares to "Hold" from "Buy," which quickly sent the stock down 87 cents, or 8.9 percent, to $8.89, the media outlet stated.
By 3:02 pm on Wednesday, August 15, Smith & Wesson shares had fallen 12.7 percent, or $1.24, to $8.52, compared to the company's 52 week high of $10.25.