Smith & Wesson Brands, Inc. (SWBI) Is Down 23% In One Month. Here Is Why

Smith & Wesson Brands, Inc. (NASDAQ:SWBI) is among the 10 Best Small Cap Defense Stocks to Buy According to Hedge Funds. The company is a leading maker of long guns, handguns, rifles, and other shooting equipment.

An overhead aerial shot of a gunsmiths workshop, surrounded by tools of the trade.

SWBI’s shares are down 23% over the past month, with a major dip following the announcement of fourth quarter 2025 results on June 18. Net sales were reported at $140.8 million, down 11.6% year-over-year, while non-GAAP net income declined from $22.1 million in the prior year to $9 million this year. Gross margin stood at 28.8%, compared to 35.5% last year.

Smith & Wesson Brands, Inc. (NASDAQ:SWBI)’s President and CEO, Mark Smith, cited industry trends and macroeconomic challenges as the reasons behind a difficult quarter. However, the company was able to offset the bottom-line impact by leveraging its flexible manufacturing model and by ensuring disciplined cost management.

While the current market conditions suggest the headwinds are likely to persist in the near term, the management remains optimistic about Smith & Wesson Brands, Inc. (NASDAQ:SWBI) being well-positioned to succeed. New products continue to perform well, which has enabled the company to maintain its dominant position in the firearms market.

Following the results, analysts at Lake Street lowered Smith & Wesson Brands, Inc. (NASDAQ:SWBI)’s price target to $11 from $12.5, but maintained a Buy rating for its shares.

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Disclosure: None.