Gun maker Sturm, Ruger & Company bought back 0.4 percent of the outstanding shares of the company’s common stock at the start of 2015’s first quarter.
At $34.57 a share, the company paid $2.8 million for 82,100 shares from the open market with cash on hand. Last week’s repurchase left 18.7 million shares available, valued at $73.2 million.
Buybacks allow a company to return wealth to shareholders. By absorbing outstanding stock, a repurchase reduces the number of shares available on the open market and forces the price per share to increase.
Since April 2, the company’s stock has hovered around $49, but the price has dropped roughly $5 since March 9.
In January, at the end of 2014’s fourth quarter, the company bought back 680,800 shares of stock for $24 million also with cash on hand.
Despite lower profits, Ruger’s performance at the end of the fourth quarter left investors feeling content. The Connecticut-based company reported $10.5 million in net income for its fourth quarter, closing out 2014 with a total profit of $64 million.