Sturm Ruger shares along with shares of American Outdoor Brands rose 4% or more in trading early Monday following the massacre of 58 people in Las Vegas in what has been called the deadliest ever shooting in U.S. history.
Gun makers Sturm Ruger shares jumped 4.5% while American Outdoor Brands, which was formerly known as Smith & Wesson increased by over 3%.
On Sunday night, 64-year old Stephen Paddock from Mesquite, Nevada opened fire on a concert from the 32nd floor of the Mandalay Bay Hotel with an automatic weapon. Paddock killed 58 people while injuring over 500.
Paddock was killed by police and did not have any known connection with terrorism and police are not calling it terrorism at this time.
The increase in both gun stocks came apparently as traders believe that sales of arms will increase ahead of possible tighter gun regulations due to the shooting.
They might also believe that sales will increase as people look to arm themselves heavily for their own protection following the Sunday night shooting.
Following shootings in Orlando, Florida and San Bernardino, California, there was a two- almost three-month surge in sales of firearms, said an industry analyst on Wall Street.
The two attacks, linked to ISIS, set off something in the consciousness of Americans about their personal safety.
Although it does not appear there will be any change in laws related to gun ownership national wide, there could be changes made state to state as some states might decide to tighten their own control laws.
In the month after the mass shooting in the U.S., shares of Sturm Ruger were up an average of 2.8%, while at American Outdoor Brands they climbed an average of 5.3%.
The two stocks have dropped significantly since the election last November was won by President Donald Trump. Gun sales climbed prior to the election as there was an expectation that if the Democrats won there would be an increase in restriction on purchasing arms.
After the win by Trump, sales of firearms dropped and that was followed by a drop in share price.
The stocks did see a surge last month after a report by Reuters cited senior officials in the U.S. that the White House administration was working to make it easier for gun makers in the U.S. to sell foreigners small firearms.
As of the close of the market on Friday, Sturm Ruger stock was down 2% for this year, while American Outdoor Brands was down close to 28% for 2017.