Gun co. stocks drop, but sales are high

SPRINGFIELD, Mass. (WWLP) - It's been a turbulent week for those in Newtown and the rest of the nation, and it's also been a turbulent week for gun stocks.

Stocks of Springfield-based Smith & Wesson fell 15% from Friday to Tuesday. On Wednesday, they were back up.

The shooting at Sandy Hook Elementary School sparked the latest conversation about gun control. After 20 children and 6 others were shot to death at the school, stocks were down even though sales were up.

On Wednesday stocks rose when President Obama announced the new task force focusing on ways to reduce gun violence. This has gun enthusiasts scrambling to try and snatch up certain types of rifles in the event they are banned.

While the initial drop was a reflection of the sentiment against guns, the rise in demand is overshadowing that.

AIC economics professor John Rogers told 22News, “The stock price is going to be buffeted between the long-term effect of these gun control laws that might be passed, and the short term effect of rising sales and profits as a result of people trying to get ahead of the ban.”

It's important to note, the gun used at Sandy Hook was a Bushmaster AR-15 rifle that was made by gun manufacturer Freedom Group, which is part of a private equity firm.

It's likely these gun sales will continue to increase as more regulations are proposed.