Ruger isn't doing a buyback. They already did a few. Shares Outstanding decreased from 27 million shares in the mid-1990s to 19 million today.
Ruger is a cash cow. Ruger paid $8.40 in cash dividends since Obama took office in 2009. The rate is now set as a percentage of net income. They only did a special dividend because they were worried the tax rate for dividends was about to increase.
Ruger has zero debt. Unlike most other gun companies that have serious debt problems. Ruger has been historically debt free, with a very strong balance sheet, and a healthy current account ratio.
Huge short position. Lots of people shorted Ruger thinking Mitt Romney was going to win and gun sales would drop. Instead of covering after the election, shorts doubled down thinking gun control would pass. Thus, there's a huge short position that is causing a short squeeze.
Revenue and profits are up due to:
1. Obama and Communists in the White House
2. Democrats talking about gun control
3. Possible UN treaty banning gun exports/imports.
4. AMC's Walking Dead and other "end of the world" shows scaring people into buying guns.
5. Increase strength of the NRA, and their ability to get pro-gun CCW laws passed.
6. Recent court decisions favoring the 2nd amendment
7. Hot new ruger products. Ruger has all the "cool" guns. Ex. LCP, LCR, SR-556, LC9
8. Overall increase by the general public in purchasing guns.
9. Lots of Veterans coming back from Iraq, Afghanistan, and other combat zones with and interest in buying toys they used while in the service.
10. Increase in seniors and women in the need for self protection.
Future Big News:
Ruger just opened a 3rd factory in Carolina.