Gun stocks trade mixed after President Biden calls for ban on assault weapons

Shares of gun and ammunition companies were mixed Tuesday, after President Joe Biden called for a ban on assault weapons and high-capacity magazines, in the wake of mass killings by gunfire in Georgia and Colorado. For gun makers, Sturm Ruger & Co.'s stock /zigman2/quotes/200036418/composite RGR +0.72% fell 12.0% in afternoon trading while Smith & Wesson Brands Inc. shares /zigman2/quotes/202273249/composite SWBI +0.62% rose 0.9%, while ammunition and shooting accessories company Vista Outdoor Inc.'s stock /zigman2/quotes/205852373/composite VSTO -0.90% have up 2.0%. Industry experts have said the regulatory environment is often the biggest driver of demand for guns, but worries about gun control measures tend to outweigh any real risk of meaningful measures. Biden said the U.S. has to act, as gun control measures "will save lives, American lives." His comments come after a shooting at a Colorado supermarket killed 10 people, less than a week after shootings at massage businesses in the Atlanta area killed eight people. Sturm Ruger's stock has gained 1.5% over the past three months but has rallied 44.6% over the past 12 months, while Smith & Wesson shares have tacked on 1.0% the past three months and 167.8% the past year. In comparison, the S&P 500 /zigman2/quotes/210599714/realtime SPX -0.16% has climbed 75.9% the past 12 months.