Blue Apron Shares Breach IPO Price; Gun Stocks Get Smoked

APRN stock has had a lackluster trading debut

Jun 30, 2017 at 2:11 PM
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Stocks are trading higher, as oil prices take aim at a seventh straight daily win. Not all of the day's action is to the upside, though, with gun makers American Outdoor Brands Corp (NASDAQ:AOBC) and Sturm Ruger & Company Inc (NYSE:RGR), as well as meal delivery service Blue Apron Holdings Inc (NYSE:APRN) all trading notably lower. Here's a quick look at what's pressuring shares of AOBC, RGR, and APRN.

AOBC Stock Slides on Weak Forecast

American Outdoor Brands shares have are down 5% to trade at $22.69, after the Smith & Wesson maker's dismal current-quarter forecast overshadows a fiscal fourth-quarter earnings beat. And while Craig-Hallum raised its price target on AOBC shares to $23 from $19, Lake Street Capital Markets maintained its "hold" rating and $17 price target, citing expectations "the industry environment will remain difficult for at least two more quarters."

Today's sharp sell-off puts a halt to AOBC's rally off its April lows near $18.40 -- a move that coincided with a steady decline in short interest. But while short interest is down 30% from the April 1 reporting period, there are still 11.2 million American Outdoor Brands shares sold short, or 16.8% of the stock's available float.

RGR Stock Gets Hit By Sector Headwinds

AOBC's dreary outlook is weighing on sector peer Sturm Ruger, with the shares down 6.8% at $62.80. Though RGR is still maintaining an 19.2% year-to-date lead, it's broken below its 30-day moving average -- a trendline that's ushered the shares higher since March, and appeared to be emerging as a layer of support earlier this week.

After being heavily targeted by short sellers between November and April, RGR stock has seen these bearish bets decline by 26% in the past three months. Nevertheless, more than one-quarter of Sturm Ruger's float remains dedicated to short interest, or 22.4 times the equity's average pace of trading. 

APRN Stock Sinks Into Single Digits

It's been a tough week for Wall Street newcomer Blue Apron, which began trading publicly just yesterday. The company slashed the range of its initial public offering (IPO) on Wednesday, and closed right at their $10 IPO price on Thursday, after surging all the way up to $11. Today, APRN shares have slid into single-digit territory, last seen down 6% at $9.48, after earlier falling as low as $9.42.

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