After NRA Reports Massive Drop in Contributions, Gun Stocks Take a Hit
Share prices for some gun manufacturers dropped after the National Rifle Association released that it had lost more than half a billion dollars in income last year.
The gun-rights organization reported $98 million in contributions in 2017, down $55 million from the year prior, according to a report on the organization’s tax records by the Daily Beast.
In the wake of the news, stock prices for gun companies fell.
Sturm, Ruger & Company, the largest gun manufacturer in the US, fell 1.3% Tuesday. American Outdoor Brand Corporation, which owns the Smith & Wesson brand, saw a decline of 2.9%, and Vista Outdoor, which makes ammunition and rifle-scopes was down 3.9%. Olin, an ammunition manufacturer, however, saw a 0.6% increase.
The past few years have been a rollercoaster for gun manufacturers.
These companies have typically seen a bump in stock after mass shootings, including a February shooting at a Parkland, Fla. high school that left 17 dead and a shooting at a concert venue in Las Vegas in October 2017 that left more than 50 dead.
But many are also reporting a drop in sales during the Trump presidency.
In 2017, American Outdoor Brands saw a 90% reduction in profit and Remington saw a 30% loss in revenue, leading the country’s oldest gunmaker to file for bankruptcy protection in March. In October Sturm, Ruger & Company rgr reported a 35% loss in its quarterly profits.
And as gun manufacturers are seeing a decrease in sales, the NRA is hurting from a loss in dues. The $55 million drop in contributions during 2017 includes a $35 million downturn in dues collected, a sign that hints at dwindling support, the Daily Beast reports.
In August, the NRA reported “deep financial trouble” after New York Gov. Andrew Cuomo encouraged banks and insurance providers to cease doing business with gun-advocacy groups.
Last year, one single anonymous donor gave the NRA $19 million, or one-fifth of the organization’s annual contributions, the Daily Beast reports.