Smith & Wesson, Sturm, Other Gun Stocks In Focus As US Reportedly Moves To Ease Firearm Restrictions

• The U.S. is considering changes to the Bureau of Alcohol, Tobacco, Firearms, and Explosives regulations.
• The changes, which could reportedly be announced at the National Shooting Sports Foundation trade show, which begins on Tuesday, would likely impact trading in major gun stocks.
• The Donald Trump administration has previously signaled its intent to reverse many firearms restrictions implemented under his predecessor, Joe Biden. 

Gun stocks, including Smith & Wesson Brands, Inc. and Sturm, Ruger & Co., are likely to gather heightened attention on Tuesday as the U.S. government reportedly moves to ease certain rules on local private sales and the export of firearms.

The Justice Department is considering loosening a slate of gun regulations, the Washington Post reported on late Monday, citing unnamed sources. 

The changes to the Bureau of Alcohol, Tobacco, Firearms, and Explosives regulations are expected to ease restrictions on private sales, alter the types of firearms that can be imported, and make licensing fees refundable. A requirement for disclosing gender at the time of gun purchase might also be dropped.

Stocks In Focus

If done, the changes could potentially increase sales of firearms; stock such as Smith & Wesson Brands (SWBI), Sturm, Ruger (RGR), American Outdoor Brands (AOUT), and GunBroker.com parent Outdoor Holding (POWW), are likely to react to the news as trading begins in the shortened week on Tuesday.

On Stocktwits, retail sentiment for RGR shifted to ‘bullish’ from ‘neutral’ as of late Monday, while the sentiment for AOUT shifted to ‘neutral’ from ‘bearish.’ SWBI’s sentiment reading climbed higher in the ‘bullish’ zone, while that for POWW remained in the ‘neutral’ zone.

Stocktwits reported last month that firearm stocks largely underperformed in 2025, although POWW gained 55% thanks to a marked improvement in its fundamentals and the ammunition manufacturing business.

AOUT and RGR are leading in the new year, with 23% and 15.6% gains, respectively, already in January. Beyond regulatory shifts, the stocks also see sharp moves following mass-shooting events, as was observed in the aftermath of the killing of conservative activist Charlie Kirk.

The Gun Laws Issue

The Washington Post reported that officials could announce the changes to coincide with the National Shooting Sports Foundation gun trade show in Las Vegas, which begins on Tuesday.

Deputy Attorney General Todd Blanche is set to address the event. The NSSF SHOT Show ranks among the largest firearms trade exhibitions in the U.S., and top Justice Department officials from both Democratic and Republican parties are typically in attendance.

Gun policy has become a prominent political issue, with the Donald Trump administration signaling its intent to reverse many firearms restrictions implemented under his predecessor, Joe Biden. 

Since taking office, Trump has ordered federal agencies to review and roll back several Biden-era firearm regulations and has dismantled structures such as the White House Office of Gun Violence Prevention that focused on gun safety. 

The administration has also reversed enforcement policies like the Bureau of Alcohol, Tobacco, Firearms, and Explosives’ “zero-tolerance” dealer rule and worked to rescind other regulatory measures, moves welcomed by major gun-rights organizations such as the Gun Owners of America. 

For updates and corrections, email newsroom[at]stocktwits[dot]com.

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