Why Ammo Stock Is Tumbling Today
Shares of Ammo (NASDAQ: POWW) are tumbling today, down by 10.8% as of 11:19 a.m. ET after the ammunition maker announced it intended to split into two separately traded companies.
Following a trend among other shooting sports companies, Ammo said it will spin off its marketplace business, with Chairman and CEO Fred Wagenhals assuming the same position at the new company. The leader of the existing ammunition business will be determined at a later time.
It's no secret the firearms industry is a volatile one, and others in the space have also split their operations in two. Gunmaker Smith & Wesson Brands (NASDAQ: SWBI) spun off its outdoor gear business into American Outdoor Brands (NASDAQ: AOUT). Vista Outdoor (NYSE: VSTO) sold off its gun operations a few years ago, but recently announced it would separate its ammo business from its outdoor gear and accessories unit.
Source Fool.com
