Gun maker stocks surged on early Wednesday morning as President Barack Obama’s re-election has stoked fears of tighter gun control measures in his second term.
Shares of the top two U.S. gun manufacturers Smith & Wesson and Sturm Ruger exploded early Wednesday morning, reports Investor’s Business Daily.
“The re-election of President Obama should drive political firearm sales,” said Benchmark & Co analyst Mike Greene.
Obama has said he supports the right to bear arms in the past, but in the second presidential debate he said he would support an assault weapons ban if re-elected.
“The administration has not really lifted a finger in the last four years to tighten gun control legislation,” said Wedbush Securities analyst Rommel Dionisio. “There is a consumer fear that Obama will tighten gun control legislation, but whether or not they will do it this time I don’t know.”
Obama has also supported improving background checks to keep guns out of criminal hands.
The FBI recently reported adjusted firearms background checks, which is an indicator of future gun sales, jumped 18.4 percent in October and background checks for handguns up 24.8 percent from the same time last year.
“Gun owners and hunters fear that a second Obama administration with no future political campaigns to worry about will try to destroy this great American freedom,”
NRA spokesman Andrew Arulanandam said to the AP.
Reuters reports that Smith & Wesson shares were up 7.6 percent in afternoon trade on the Nasdaq, and Sturm Ruger shares were up 5.9 percent on the New York Stock Exchange on Wednesday.