Shares of American Outdoor Brands Corp. shot up 7.4% toward a 3-month high in morning trading Thursday, after the company said it planned to spin off its Smith & Wesson gun-maker business into an independent publicly traded company. Rival gun maker Sturm Ruger & Co.'s stock /zigman2/quotes/200036418/composite RGR +3.43% rose 0.5% and shares of ammunition maker Vista Outdoor Inc. /zigman2/quotes/205852373/composite VSTO +4.47% slipped 0.8%. American Outdoor expects the spinoff to be completed in the second half of 2020. Prior to completion of the spinoff, American Outdoor said it plans to call its senior notes, repay its existing bank term loan and consolidate those credit facilities into the lower interest rate revolving line of credit. American Outdoor, which will be the outdoor products and accessories business, expects to be "well capitalized" following the spinoff with zero debt.