Smith & Wesson to buy additional $15 million shares amid gun-control talks
(Reuters) - Gun maker Smith & Wesson Holding Corp (SWHC.O) said it plans to buy back an additional $15 million of shares, amid discussions for tighter gun control laws after a school shooting in Connecticut earlier this month.
The company said it has completed the $20 million share buyback it announced on December 6, and would buy the additional shares by June 30.
Smith & Wesson's shares, which has soared more than 80 percent in the past year, were trading up 4 percent at $8.30 on Thursday on the Nasdaq. The stock has lost more than a tenth of their value since the incident.
Shares of other gun companies such as Sturm Ruger & Co Inc (RGR.N) and Forjas Taurus SA (FJTA4.SA) have also taken a beating in recent weeks. Sturm Ruger shares were trading up 2 percent on Thursday.
Private equity firm Cerberus Capital Management LP and New York State Common Retirement Fund said they were reviewing their gun-related investments after the Newtown elementary school shooting.
Buybacks are common among companies that are cash-rich and seeking either to soak up extra shares they have issued under compensation plans or to convince investors that their shares are undervalued.
(Reporting by Arpita Mukherjee in Bangalore; Editing by Roshni Menon)
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