Added to YB: 2026-03-26
Pitch date: 2026-03-23
RGR [bullish]
Sturm, Ruger & Company, Inc.
+9.92%
current return
Author Info
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Company Info
Sturm, Ruger & Company, Inc., together with its subsidiaries, designs, manufactures, and sells firearms under the Ruger name and trademark in the United States.
Market Cap
$649.6M
Pitch Price
$39.60
Price Target
46.00 (+6%)
Dividend
1.13%
EV/EBITDA
48.33
P/E
-150.64
EV/Sales
1.02
Sector
Leisure Products
Category
special_situation
Sturm, Ruger & Co. ($RGR) — A 75-Year-Old Gunmaker at Trough Earnings, and Beretta Is Betting $60M That It’s Worth More
RGR: 75-yr gunmaker at first annual loss in 20yrs ($546M rev, -$4.4M NI, 15% GM). Beretta spent $60M for 9.95% stake, filed 13D seeking 'combine companies,' nominated 4 directors (incl ex-Vista CEO & activist DiSanto) for May 29 proxy. Board rejected all proposals. Standalone ~$40 FV on $45M mid-cycle EBIT at 12x; stock at $39 pricing zero for catalyst. Bulls: channel inventory down 43%, record $285M backlog, $91M net cash (15% of mcap), CFIUS precedent strong. Bears: ASP fell $395→$322, 9pt GM gap vs SWBI, top 3 distributors now 67% of sales. Probweighted upside $45-46 (+15-18%) with 10:1 risk/reward skew.
Read full article (23 min)