RGR STURM RUGER & CO INC
Price Chart
Executive Summary
Two directors at Sturm Ruger made open-market purchases totaling $230K over a 7-day window, following the Q1 2026 earnings release and the Beretta Holding strategic cooperation agreement. The buys come after a quarter where revenue grew 4.1% YoY but GAAP EPS collapsed to $0.01 ($0.27 adjusted) due to $5.7M in one-time costs for the Beretta deal and restructuring. The cluster represents 0.04% of market cap — trivial in size — but the timing (post-earnings, post-activist settlement) and the fact that both are directors (not C-suite) buying at a depressed price near $38-40 suggests confidence in the normalized earnings power once temporary expenses roll off.
Key Financial Metrics
Actionable Insight
The insider buys are small in dollar terms but directionally positive from two directors post-earnings. The key catalyst to watch is whether Q2 2026 shows the expected normalization of margins as Beretta/restructuring costs roll off. With $105M cash, no debt, and a 3.5x current ratio, the balance sheet is fortress-grade. The stock's 36x adjusted EPS is elevated but may compress if earnings recover. Monitor next 10-Q for margin improvement.
Key Facts
- Two directors purchased $230K in open-market transactions (0.04% of $636M market cap)
- Phillip Widman bought 5,000 shares at $38.00 on May 12; Bruce Pettet bought 1,000 shares at $39.89 on May 14
- Q1 2026 revenue grew 4.1% YoY to $141.4M, but GAAP EPS fell to $0.01 from $0.46 due to $3.2M Beretta deal costs and $2.5M severance
- Adjusted EPS was $0.27, down from $0.46 YoY; cash from operations was $18.8M; no debt; $105.2M cash
- Company declared $0.11 quarterly dividend (40% payout of adjusted net income)
- New products accounted for 41% of firearm sales; sell-through outpaced NICS growth (3.2% vs 1.6%)
Financial Impact
Insider purchases of $230K are trivial relative to $636M market cap; Q1 adjusted EPS of $0.27 implies ~$1.08 annualized run-rate, or a ~36x P/E at $39 — not cheap but cash-rich and debt-free
Risk Factors
- Adjusted EPS of $0.27 still represents a 41% YoY decline — core profitability is eroding even excluding one-time items
- No share repurchases in Q1 despite cash hoard; capital allocation priorities unclear
- Beretta cooperation agreement may impose strategic constraints or lead to further costs
- Firearm demand is cyclical and sensitive to election cycles and regulatory changes
Market Snapshot
Documents Analyzed
This report is based on 1 SEC document filed with EDGAR.
| Document | Accession Number |
|---|---|
| CLUSTER Data (Synthetic) | cluster-RGR-1778867114850 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
|
Jun 4, 2026
5d ago
|
8-K
| $39.39 $38.77 | ▼ −1.57% | ▲ +1.02% | $38.46 (−2.36%) |
|
May 21, 2026
19d ago
|
Insider Cluster
| $40.04 $40.21 | ▲ +0.42% | ▼ −0.16% | $38.46 (−3.95%) |
|
May 15, 2026
25d ago
|
Insider Cluster
| $39.47 $40.16 | ▲ +1.75% | ▲ +1.81% | $38.46 (−2.56%) |
|
May 8, 2026
4w ago
|
8-K
| $39.04 $37.58 | ▲ +3.74% | ▲ +3.97% | $38.46 (+1.49%) |
|
May 4, 2026
5w ago
|
8-K
| $41.77 $40.51 | ▼ −3.02% | ▼ −4.40% | $38.46 (−7.92%) |
|
May 4, 2026
5w ago
|
DEFA14A
| $40.99 $41.77 | ▲ +1.90% | ▲ +1.11% | $38.46 (−6.17%) |
|
May 4, 2026
5w ago
|
8-K
| $40.99 $41.77 | ▲ +1.90% | ▲ +1.11% | $38.46 (−6.17%) |
|
Mar 24, 2026
11w ago
|
DEFA14A
| $40.74 $43.53 | ▲ +6.85% | ▲ +6.28% | $38.46 (−5.60%) |
|
Mar 10, 2026
13w ago
|
8-K/A
| $38.44 $38.88 | ▼ −1.14% | ▼ −1.25% | $38.46 (−0.05%) |
|
Mar 4, 2026
13w ago
|
8-K
| $38.24 $37.03 | ▼ −3.16% | ▼ −2.58% | $38.46 (+0.58%) |
US Market Status
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