AOBC stock: buy or sell?

AOBC stock price: $8.87 -2.10% At close on May 21st, 2019

Updated on:
May 21st, 2019

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American Outdoor Brands shares fell -2.10% to $8.87 today. Tuesday was the third red session in a row, sliding in full a -5.56%.

American Outdoor Brands Corporation designs, manufactures, and sells firearms worldwide. It operates in two segments, Firearms, and Outdoor Products & Accessories.

Should I buy AOBC stock?

Make a decision about when to buy or sell stocks is one of the hardest parts of being a trader or investor. Trading strategies are meant for helping you in the decision process of what stocks to choose and when is the best time to buy them. At Stocks2.com, we like to use very simple but trusted and powerful trend following trading strategies. Simple things usually work the best.

Currently, American Outdoor Brands stock doesn't match any of these trading strategies, so our recommendation is not to buy.

Buy setupElegible
New all-time highNo
New 52 week highNo
Price crossing up 200d MANo
100d MA crossing up 200d MANo
This doesn't mean AOBC will slide in coming sessions, or it will not rise higher. Simply, it doesn't match our recommended trading systems.

Is American Outdoor Brands stock a buy?

Everyday, hundreds of stock ratings are posted by financial analysts to indicate a particular stock's attractiveness. At Stocks2.com, we collected 2 ratings published for AOBC stock in the last 30 days.

Is AOBC a good stock to buy?
DateAnalyst / BrokerPrevious ratingCurrent rating
2019-3-8WedbushOutperformOutperform
2019-3-13WedbushOutperformNeutral

AOBC stock analysis

Daily outlook

Shares of American Outdoor Brands fell an awful -2.10% and closed at $8.87.

Shares of American Outdoor Brands closed today at $8.87 and fell an awful -2.10%. Since price and SMA200d lines crossed down on March, AOBC fell $-4.09 per share (-31.56%).

AOBC stock chart (daily)

Weekly outlook

Shares of American Outdoor Brands ended this week at $8.87 and dropped a terrifying -3.69%. For 4 weeks in a row, price slid and lost a -11.28%. Early May AOBC collapsed a hair-raising -5.35% in just one week.

Since early March, when AOBC stock price broke down the 40-weeks moving avarage line, it slid $-4.09 per share (-31.56%). Trading stocks that are under the 40-weeks (that is, 200-days) moving average mark is not recommended by many experts, as it indicates that the stock has not enough institutional support.

AOBC stock chart (weekly)

AOBC stock price history

AOBC stock went public on August 17th, 1999 with a price of $1.221. Since then, AOBC stock grew a 627.00%, with an average of 33.00% per year. If you had invested $1,000 in AOBC stock in 1999, it would worth $6,270.00 today.

1: Adjusted price after possible price splits or reverse-splits.

AOBC stock historical price chart

AOBC stock reached 52-week highs on September at $15.95, and all-time highs 2016-08-11 with a price of 31.19.

AOBC stock price target is $13.50

How much a stock will be priced tomorrow or next week is quite unpredictable However, banks and other financial institutions analysts, with the help of lots of data and algorithms do their best to predict the stock prices movement. The accuracy of these stock price predictions is not very high, and you should not blindly believe and make decisions only based on what this ratings or price target predictions say. Currently, only 1 price prediction for American Outdoor Brands stock was published in the last month:
AOBC stock price predictions
DateAnalyst / BrokerActionPrevious targetCurrent targetDiff
2019-3-8WedbushLowers Target$15.30$13.50-11.8%
(in average)$15.30$13.50-12.0%

Financials and fundamental analysis

Earnings date and Earnings per Share

On March, American Outdoor Brands presented its financial report, posting an astounding gain for the Earnings per Share (EPS) ratio. Analyst were expecting $0.12 per share, but American Outdoor Brands posted $0.16.
AOBC earnings date and EPS evolution
QuarterReporting dateEstimated EPSActual EPSSurprise
2017-Q2-n/a0.49n/a
2017-Q3-n/a-0.04n/a
2017-Q4-n/a0.06n/a
2018-Q12018-03-010.080.0912.5%
2018-Q22018-06-200.110.24118.2%
2018-Q32018-08-300.120.2175.0%
2018-Q42018-12-060.130.253.8%
2019-Q12019-03-070.120.1633.3%
2019-Q2-n/an/an/a
2019-Q3-n/an/an/a

Annual financial results

Compared to 2018, last anual revenues report draw a tight movement of 0.00% to $606.85 million USD. In the same way, its profit margin (compared to revenues) remained constant to 3.32%, that is $20.13 million.

American Outdoor Brands presents anual results in April, and to evaluate its evolution since then, we estimate annual sales and income figures by adding results from the last 4 quarters. This is called TTM (or Twelve Trailing Months). So, American Outdoor Brands TTM sales up to January 2019 were $634.57 and earnings $16.25 M USD. When comparing this TTM figures with the last reported annuality, we can esteem American Outdoor Brands business evolution since April 2018: Annual sales up to January, compared to lastest yearly report, raised a fine 4.57%. Regarding profit margin, American Outdoor Brands stayed stable -0.76% to 3.32%

AOBC annual Sales and Income evolution
YearSalesYoYIncome/(margin)YoY
2014$627 M-$89 M14.1%-
2014$627 M0.00%$89 M14.1%0.00%
2015$552 M-11.93%$50 M9.0%-43.78%
2015$552 M0.00%$50 M9.0%-0.44%
2016$723 M30.99%$94 M13.0%89.39%
2016$723 M0.00%$94 M13.0%0.00%
2017$903 M24.94%$128 M14.2%36.07%
2017$903 M0.00%$128 M14.2%0.00%
2018$607 M-32.81%$20 M3.3%-84.26%
2018$607 M0.00%$20 M3.3%-0.01%
TTM $635 M4.57%$16 M2.6%-19.27%

Quarterly financial results

American Outdoor Brands posted $162.01 M in revenues for 2019-Q1, a 0.19% up compared to previous quarter. Reported quarter earnings marked $-5.73 million with a profit margin of -3.53%. Profit margin eased a -7.66% compared to previous quarter when profit margin was 4.12%. When comparing turnover to same quarter last year, American Outdoor Brands sales marked a slightly fine increase and inched a 2.94%. Looking back to recent quarterly results, American Outdoor Brands posted 2 negative quarters in a row.
AOBC quarterly Sales and Income evolution
QuarterSales1QoQ2Income1/(margin)QoQ2
2017-Q2$229 M-$28 M12.1%-
2017-Q3$129 M-43.71%$-2 M-1.7%-107.84%
2017-Q4$148 M15.04%$3 M2.2%-249.03%
2018-Q1$157 M6.03%$11 M7.2%252.35%
2018-Q2$172 M9.31%$8 M4.5%-32.74%
2018-Q3$139 M-19.29%$8 M5.5%-0.25%
2018-Q4$162 M16.47%$7 M4.1%-12.82%
2019-Q1$162 M0.19%$-6 M-3.5%-185.90%

American Outdoor Brands ownership

When you are planning to invest in a company, it's always worth to check its ownership structure.

Management staff in all public traded companies that hold equity is required to report every transaction to the SEC. For American Outdoor Brands, 2.35% of all outstanding shares are owned by its staff.

In case of American Outdoor Brands stock, 74.06% of its shares are held by institutions (mutual funds, pension funds, big banks and other large financial institutions). Bearish positions for AOBC stock account 0.00%, no big difference from last month.

The following table compares ownership indicators for other stocks related to American Outdoor Brands:

AOBCGDNPKRGR
Market cap$483.9 M$49.4 B$709.0 M$900.4 M
Total shares54.6 M288.2 M7.0 M17.5 M
Float shares50.0 M277.8 M5.0 M15.6 M
  - Institutional holdings (%)74.1%87.8%67.0%78.6%
  - Insider holdings (%)2.4%6.0%29.6%4.5%
Shares in short selling0.0%0.0%0.0%0.0%

AOBC summary

Tuesday, May 21st, 2019
Open$9.11
Close$8.87
Day range$8.82 - $9.11
Previous close$9.06
Session gain-2.10%
Average true range$0.26
50d mov avg$9.55
100d mov avg$11.02
200d mov avg$12.06
Daily patternlt03c
Weekly pattern lt03c

American Outdoor Brands performance

To measure stock performance is always good to compare with competitors or related stocks. We picked General Dynamics, National Presto Industries and Sturm, Ruger as the bechmarking frame for American Outdoor Brands stock.
Stock3m6m12m
AOBCAmerican Outdoor ...-30.81%-33.06%-29.21%
GDGeneral Dynamics-0.03%-2.68%-15.86%
NPKNational Presto I...-18.07%-19.57%-8.11%
RGRSturm, Ruger-11.92%-6.90%-16.65%

American Outdoor Brands competitors

One check before trading any stock is to review a list of its competitors, in this case for American Outdoor Brands. We picked 3 companies as American Outdoor Brands competitors as they are in the same industry or have similar market objectives.