Latest news with #ToddSeyfert
Yahoo
27-05-2025
- Business
- Yahoo
With 69% institutional ownership, Sturm, Ruger & Company, Inc. (NYSE:RGR) is a favorite amongst the big guns
Given the large stake in the stock by institutions, Sturm Ruger's stock price might be vulnerable to their trading decisions A total of 15 investors have a majority stake in the company with 50% ownership Insiders have been buying lately Trump has pledged to "unleash" American oil and gas and these 15 US stocks have developments that are poised to benefit. Every investor in Sturm, Ruger & Company, Inc. (NYSE:RGR) should be aware of the most powerful shareholder groups. We can see that institutions own the lion's share in the company with 69% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company. Since institutional have access to huge amounts of capital, their market moves tend to receive a lot of scrutiny by retail or individual investors. Hence, having a considerable amount of institutional money invested in a company is often regarded as a desirable trait. Let's take a closer look to see what the different types of shareholders can tell us about Sturm Ruger. View our latest analysis for Sturm Ruger Institutions typically measure themselves against a benchmark when reporting to their own investors, so they often become more enthusiastic about a stock once it's included in a major index. We would expect most companies to have some institutions on the register, especially if they are growing. As you can see, institutional investors have a fair amount of stake in Sturm Ruger. This suggests some credibility amongst professional investors. But we can't rely on that fact alone since institutions make bad investments sometimes, just like everyone does. When multiple institutions own a stock, there's always a risk that they are in a 'crowded trade'. When such a trade goes wrong, multiple parties may compete to sell stock fast. This risk is higher in a company without a history of growth. You can see Sturm Ruger's historic earnings and revenue below, but keep in mind there's always more to the story. Since institutional investors own more than half the issued stock, the board will likely have to pay attention to their preferences. Hedge funds don't have many shares in Sturm Ruger. The company's largest shareholder is BlackRock, Inc., with ownership of 17%. Meanwhile, the second and third largest shareholders, hold 9.2% and 4.6%, of the shares outstanding, respectively. In addition, we found that Todd Seyfert, the CEO has 0.5% of the shares allocated to their name. Looking at the shareholder registry, we can see that 50% of the ownership is controlled by the top 15 shareholders, meaning that no single shareholder has a majority interest in the ownership. While it makes sense to study institutional ownership data for a company, it also makes sense to study analyst sentiments to know which way the wind is blowing. There is some analyst coverage of the stock, but it could still become more well known, with time. The definition of an insider can differ slightly between different countries, but members of the board of directors always count. Management ultimately answers to the board. However, it is not uncommon for managers to be executive board members, especially if they are a founder or the CEO. Insider ownership is positive when it signals leadership are thinking like the true owners of the company. However, high insider ownership can also give immense power to a small group within the company. This can be negative in some circumstances. Shareholders would probably be interested to learn that insiders own shares in Sturm, Ruger & Company, Inc.. In their own names, insiders own US$23m worth of stock in the US$590m company. This shows at least some alignment. You can click here to see if those insiders have been buying or selling. The general public-- including retail investors -- own 27% stake in the company, and hence can't easily be ignored. While this size of ownership may not be enough to sway a policy decision in their favour, they can still make a collective impact on company policies. I find it very interesting to look at who exactly owns a company. But to truly gain insight, we need to consider other information, too. Consider for instance, the ever-present spectre of investment risk. We've identified 2 warning signs with Sturm Ruger (at least 1 which is potentially serious) , and understanding them should be part of your investment process. If you would prefer discover what analysts are predicting in terms of future growth, do not miss this free report on analyst forecasts. NB: Figures in this article are calculated using data from the last twelve months, which refer to the 12-month period ending on the last date of the month the financial statement is dated. This may not be consistent with full year annual report figures. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
Yahoo
14-05-2025
- Business
- Yahoo
RGR Q1 Earnings Call: Flat Sales in Weak Market, Focus Remains on Innovation and Capacity
American firearm manufacturing company Ruger (NYSE:RGR) fell short of the market's revenue expectations in Q1 CY2025, with sales flat year on year at $135.7 million. Its non-GAAP profit of $0.46 per share was 29.2% below analysts' consensus estimates. Is now the time to buy RGR? Find out in our full research report (it's free). Revenue: $135.7 million vs analyst estimates of $148 million (flat year on year, 8.3% miss) Adjusted EPS: $0.46 vs analyst expectations of $0.65 (29.2% miss) Adjusted EBITDA: $14.3 million vs analyst estimates of $18.71 million (10.5% margin, 23.6% miss) Operating Margin: 6.2%, in line with the same quarter last year Free Cash Flow Margin: 7.4%, up from 4.1% in the same quarter last year Market Capitalization: $612.4 million Ruger's first quarter results reflected the impact of a challenging firearms market, with management citing pressure across handguns, rifles, and shotguns. CEO Todd Seyfert emphasized that while industry-wide retail sales declined, Ruger's own performance held steady, supported by demand for recent new product introductions such as the RXM pistol and the Marlin lever-action rifles. Seyfert highlighted operational improvements and the company's ability to adapt production levels to market conditions, noting, 'Our flexible manufacturing model allowed us to adjust production based on demand while maintaining our focus on safety, quality, delivery, and cost.' Looking forward, management outlined plans to accelerate new product launches and expand production capacity, even as broader consumer demand remains uncertain. Seyfert described a 'full pipeline of roadmaps for our product categories' and indicated that capital investments would support getting new models to market faster. He acknowledged industry headwinds but projected that Ruger's financial discipline and U.S.-centric supply chain would help the company maintain stability and pursue growth opportunities, stating, 'We actually feel that we have opportunity to go out in certain categories, be more aggressive, take share, and we have the balance sheet to do that.' Management attributed Ruger's flat sales to continued demand for new products and operational adaptability in a declining market. They also highlighted ongoing investments intended to improve long-term competitiveness. Leadership Transition: The quarter marked Todd Seyfert's first as CEO, following Chris Killoy's retirement. Seyfert has prioritized maintaining Ruger's culture of quality and operational discipline during the transition. Industry-wide Demand Weakness: Management pointed to a nearly 10% year-on-year decline in overall U.S. retail firearm unit sales, with Ruger's results outperforming this trend by remaining flat. Seyfert noted, 'Although the firearms industry may be cyclical, Ruger does not have to be.' New Product Contribution: New product sales made up 31.6% of quarterly revenue. High-demand launches included the RXM pistol, second-generation Ruger American rifle, and Marlin lever-action rifles, indicating ongoing customer interest in recently introduced models. Flexible Manufacturing and Supply Chain: Ruger's U.S.-based manufacturing footprint and sourcing insulated the company from immediate tariff impacts. The company increased raw material inventories to buffer against potential supply disruptions and cost increases. Capital Investment Plans: Management discussed higher capital expenditures—potentially exceeding $30 million for the year—to support faster new product introductions, capacity expansion, and manufacturing upgrades. Seyfert stated, 'We will be more aggressive in terms of the pace of the launches.' Management expects near-term performance to be shaped by ongoing market headwinds, but plans to pursue growth through accelerated product launches, operational investments, and market share gains. Accelerated Product Launches: The company plans to increase the pace of new firearm introductions, aiming to capture customer interest and respond quickly to shifting market preferences. This approach is designed to offset weak industry demand. Capacity Expansion and Efficiency: Planned investments in production capacity and manufacturing upgrades are intended to improve output and reduce production bottlenecks. Management believes this will position Ruger to capitalize on future market recovery and consumer trends. Monitoring Industry Risks: Management acknowledged risks from persistent weak consumer demand, potential supply chain disruptions, and the impact of tariffs. While immediate effects are limited, the company is closely watching input costs and inventory dynamics to maintain margin stability. Rommel Dionisio (Aegis Capital): Asked if higher capital spending signals a more aggressive pace of new product launches. Seyfert confirmed, 'We will be more aggressive in terms of the pace of the launches.' Rommel Dionisio (Aegis Capital): Inquired about marketing and sales investment impact on profitability. Seyfert said near-term spending would be capital-focused, with expense increases tied to future growth in new product introductions. Rommel Dionisio (Aegis Capital): Questioned which product categories offer the most significant launch opportunities. Seyfert declined specifics but stated the pipeline is robust across all platforms. Mark Smith (Lake Street): Asked about the RXM pistol's effect on average selling price (ASP). Seyfert noted a short-term impact from the ramp-up, expecting stabilization as production levels out. Mark Smith (Lake Street): Probed confidence behind capacity expansion amid weak demand. Seyfert cited a combination of strong new product roadmaps and the ability to invest aggressively due to Ruger's solid balance sheet. Looking ahead, the StockStory team will be monitoring (1) the pace and commercial reception of new product launches across Ruger's core and emerging platforms, (2) the effectiveness of capital investments in boosting production efficiency and meeting demand, and (3) any signs of improvement or further deterioration in broader U.S. firearms market trends. Updates on supply chain stability and tariff impacts will also be important indicators of future performance. Ruger currently trades at a forward EV-to-EBITDA ratio of 11.3×. Should you double down or take your chips? See for yourself in our free research report. 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