(Bloomberg) – Background checks for gun buyers have increased for 13 consecutive months, with the most recent levels showing “unprecedented” strength and demand drivers through the fall, according to Lake Street Capital Markets LLC.
Checks for repeat buyers or first-time gun owners increased 75% in May on an adjusted basis compared to the previous year. It was the third month in a row that there was growth of this magnitude: checkups increased 80% in March and 69% in April. The data shows a significant increase in adjusted earnings of 19% and 17% in January and February, respectively.
The latest lawsuit is likely driven by “unmet demand for covid, recent purchases due to civil unrest and perhaps continued increase in purchases due to the upcoming elections and the potential for more regulation after the elections,” wrote the Lake Street analyst Mark Smith in a note Tuesday. The last two points will generate “continued demand in June and throughout the fall,” he said.
Others on Wall Street agree. Cowen weapons and ammunition analyst Cai Von Rumohr told clients that while confinements from the virus are beginning to decrease, the demand for weapons may “remain strong as civil unrest increases with the George Floyd protests. ” Demand for firearms in the short term would also likely be “bolstered” if electoral prospects for Democratic presidential candidate Joe Biden are strengthened, given the party’s “more restrictive stance on gun control.”
The head of US policy strategy AGF Investments’ Greg Valliere said Monday that “we believe, to date, that Democrats are in sight of controlling the House, the Senate and the White House.”
President Trump “must surely know that he is on the ropes, with unemployment likely to rise to almost 20% this Friday, with his toothless policy towards China, with the virus potentially skyrocketing again and now with urban unrest,” Valliere wrote. . Meanwhile, “Biden has stepped up his game in recent days,” showing that he has “empathy and leadership as Trump poured gasoline on the flames talking about ‘violent dogs’ to drive away protesters,” the strategist said.
NOTE: Michael R. Bloomberg, founder of Bloomberg LP, which operates Bloomberg News, is a member of the Everytown for Gun Safety advisory board and is a donor to the group. Everytown for Gun Safety advocates universal background checks and other gun control measures.
Original Note: Gun Stocks Rally On After Background Checks Surge 75% In May
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