Dick’s Sporting Goods Inc (NYSE: DKS) is taking measures to help curb gun violence in the U.S., saying it will no longer sell assault-style rifles, and it will not sell firearms of any type to customers younger than 21.
Dick’s will also no longer be selling high-capacity magazines. The policy changes will go into effect immediately nationwide, regardless of local laws.
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DKS stock was up 1.4 percent on Wednesday following the announcement. Investors have been calling on companies to take measures to help reduce mass shootings after 17 victims were killed in a school shooting in Parkland, Florida, earlier this month.
“Thoughts and prayers are not enough,” CEO Edward Stack says in a statement. “Some will say these steps can’t guarantee tragedies like Parkland will never happen again. They may be correct — but if common sense reform is enacted and even one life is saved, it will have been worth it.”
Dick’s isn’t the only company that is making changes following the latest shooting. After an onslaught of social media criticism, Delta Air Lines ( DAL), United Continental Holdings ( UAL), Hertz Global Holding ( HTZ) and Metlife ( MET) are among several companies that have cut special deals or rates for National Rifle Association members.
BlackRock ( BLK), the world’s largest asset manager, said it is meeting with gun makers Sturm Ruger & Company ( RGR) and American Outdoor Brands Corp. ( AOBC) to discuss how the companies plan to respond to the latest tragedy after several inquiries from unhappy investors.
In addition to making changes to its own policies, Dick’s is calling on politicians to do their part by raising the federal minimum age for buying guns to 21, banning assault-style rifles and bump stocks and expanding universal background checks for gun buyers to include mental health information and law enforcement records.
U.S. gun sales have slumped since the 2016 presidential election, and Dick’s has struggled with a difficult North American sporting goods market. Dick’s stock is down more than 35 percent in the past year ahead of its fourth-quarter earnings report on March 13.
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CFRA analyst Victor Ahluwalia says investors should remain cautious, even at the current share price.
“We expect the company to face difficulty in growing sales comps in fiscal 2019 amidst excessive discounting in the sporting goods retail environment,” Ahluwalia says.
CFRA has a “hold” rating and $34 price target for DKS stock.
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Dick’s Sporting Goods Inc (DKS) Is Restricting Gun Sales originally appeared on usnews.com
