8 Best Small Cap Defense Stocks to Buy Now

5. Sturm, Ruger & Company, Inc. (NYSE:RGR)

Market Cap: $641 million

Number of Hedge Fund Holders: 15

Sturm, Ruger & Company, Inc. (NYSE:RGR) is an American firearms company that has a diverse portfolio of products, mainly serving three product lines – pistols, rifles, and revolvers. It is among the largest firearm manufacturers in the United States. The company primarily sells its products to domestic customers but also sells weapons to law enforcement agencies.

The firearms maker announced financial results for the third quarter of 2024 on October 30. Net sales for the quarter stood at $122.3 million, growing 1.16% year-over-year. Net sales for the nine months ended September 28 were at $389.9 million, compared to $413.2 million in the corresponding period in 2023. Diluted earnings per share in Q3 were logged at $0.28 per share. Diluted earnings per share for the nine months ended this year were at $1.15, down from $2.13 last year.

Despite a dip in sales this year, Sturm, Ruger & Company, Inc. (NYSE:RGR) has showcased resilience in a challenging market impacted by rising fixed costs and a competitive promotional environment. It continues to maintain a robust financial position with no debt. The company ended the quarter with $96 million in cash and short-term investments.

Sturm, Ruger & Company, Inc. (NYSE:RGR) returned $39.3 million to shareholders during the first nine months of 2024 through quarterly dividends and share repurchases. The Board of Directors has also declared a $0.11 per share quarterly dividend, payable on November 27.

The company is encouraged by the market showing signs of recovery. Its new products have also performed well this year, generating 31% of all firearm sales during the first nine months of 2024. Hedge fund sentiment toward the stock has improved as well. Amongst hedge funds tracked by Insider Monkey, 15 held investments in the company as of Q3 2024, up from 14 at the end of the second quarter. Sturm, Ruger & Company, Inc. (NYSE:RGR) is one of the best small cap defense stocks to buy now.