FBI Reports Record Number Gun Buyer Background Checks in July
July was the 15 month running with a record number of background checks for gun purchases in the US, according to data released by the FBI.
The agency’s National Instant Criminal Background Check System (NICS) processed 2,197,169 requests in July, about 66,000 more than in June and a 37% jump from July 2015.
“These statistics represent the number of firearm background checks initiated through the NICS,” according to a report from the Federal Bureau of Investigation. “They do not represent the number of firearms sold. Based on varying state laws and purchase scenarios, a 1-to-1 correlation cannot be made between a firearm background check and a firearm sale.”
Gun manufacturer Smith & Wesson’s (NASDAQ:SWHC) share price increased to a record 30.59 Monday, following the FBI’s announcement.
Sturm, Ruger (NYSE:RGR), America’s largest maker of firearms shares rose to 69.40 on Monday and closed Thursday at 66.40.
Gun advocates cite the recent high-profile mass shootings across the country and increased terrorist activity across the globe for the surge in demand for weapons.
Analysts have also pointed to new policy initiatives to limit gun rights in the wake of such tragedies as driver of demand.
A gun control initiative in California is gaining ground, based on financial backing, according to the LA Times, having raised $3.8-M in campaign support. The Safety for All Committee, led by Lt. Gov. Gavin Newsom, beat the 2 opposing committees who only managed to raise $467,000.
Proposition 63, which Mr. Newsom’s committee supports, would ban high-capacity ammunition magazines, mandate background checks for purchasing ammo, require lost or stolen guns be reported, and create a system for felons to voluntarily give up their guns.
|NASDAQ:SWHC||29.58||4 August 2016||-0.15||29.67||30.15||29.52||1,181,600|
|HeffX-LTN Analysis for SWHC:||Overall||Short||Intermediate||Long|
|Bullish (0.33)||Neutral (0.06)||Bullish (0.44)||Very Bullish (0.50)|
|NYSE:RGR||66.4||4 August 2016||0.22||65.89||68||65.75||354,600|
|HeffX-LTN Analysis for RGR:||Overall||Short||Intermediate||Long|
|Neutral (0.12)||Neutral (0.03)||Neutral (0.04)||Bullish (0.28)|