(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.
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