Smith & Wesson Holding Corp. rose to its highest value since 1999 after raising its forecast for gun sales as President Barack Obama is set to announce new restrictions on arms sales.
The maker of handguns said sales for the quarter ending Jan. 31 may be as high as $180 million, a 16 percent increase from its forecast given in December. Gun sales surged last month as discussion of weapons restrictions heated up after a terrorist shooting in San Bernardino, California, left 14 dead.
Smith & Wesson rose 12 percent to $26.14 at 10:17 a.m. in New York. The shares earlier rose to $26.54, the highest intraday value since February 1999. Sturm Ruger Co., the largest U.S. gunmaker, rose 7.7 percent to $66.10.