BYRN

Byrna Technologies ($BYRN) Executives Turn Buyers After 40% Stock Drop - Non-Lethal Weapon Maker Posts 57% Growth

04/24/2025 01:02

Executives at Byrna Technologies Inc. ($BYRN), a manufacturer of non-lethal self-defense products, have recently been viewing the stock's price dip as a buying opportunity. On April 22, Director Emily Rooney purchased 2,500 shares at $20.50 per share, investing a total of $51,237.50. This followed Chief Operating Officer John Brasseur's acquisition of 728 shares at an average price of $20.19 on April 15. These purchases come after a significant stock price decline from mid-February to mid-March. $BYRN had reached a 52-week high of $34.19 on February 10 before falling to around $17 in just a month. However, the stock has been recovering in April and currently trades around $22. The insider buying signals contrast sharply with the substantial selling that occurred in February. On February 20, President Bryan Ganz sold 50,000 shares at an average price of $29.37, cashing in approximately $1.47 million. On the same day, Chairman Herbert Hughes and Chief Growth Officer Lisa Wager also sold 12,000 and 12,500 shares, respectively. All these transactions were made according to pre-planned 10b5-1 plans and occurred when the stock price was near its peak. Byrna Technologies specializes in non-lethal personal security solutions, with its flagship product being a handheld device that uses compressed air to fire projectiles containing chemical substances. These products have gained popularity as self-defense tools in environments where firearm use is restricted. The company operates through e-commerce platforms and a network of dealers and distributors across the U.S., Europe, and Asia. $BYRN reported better-than-expected results for its fiscal 2025 first quarter (ending February) on April 10, 2025. Adjusted earnings per share came in at 7 cents, surpassing both the previous year's 5 cents and analyst expectations of 4 cents. Revenue increased by 57.3% year-over-year to $26.19 million, with a net income of $1.66 million. The company's growth trend was even more pronounced throughout 2024. For the full fiscal year 2024, revenue grew by 101% to $85.8 million, with a turnaround from a net loss to a net profit of $12.8 million. This strong growth is attributed to expanded distribution channels and increased manufacturing capabilities in the U.S. Byrna Technologies' stock has shown considerable volatility over the past year but has delivered an impressive return of 71.95% overall. Particularly noteworthy was the approximately 150% price increase from early September to late December 2024. However, in 2025, the stock has experienced significant volatility, falling about 40% from its early February peak to mid-March. Wall Street analysts maintain a largely positive outlook on $BYRN. The median 12-month price target stands at $35.75, approximately 60% above the current trading price. Analysts forecast an average annual revenue growth of 22% over the next three years, significantly outpacing the projected 6.9% growth for the U.S. Aerospace & Defense industry. However, not all indicators are positive. Financial analysis reveals that despite recording a profit of $14.4 million for the year ending February 2025, Byrna Technologies reported a cash burn of $822,000. This suggests that a significant portion of profits may not be supported by actual cash flow. The accrual ratio stands at 0.54, which could raise concerns about earnings quality. Byrna's growth strategy focuses on expanding its product lineup and market reach. The company has recently launched new products like the Byrna CL, designed for everyday carry, and has strengthened distribution channels through exclusive partnerships with retailers such as Sportsman's Warehouse. Additionally, it has established a U.S.-based ammunition production facility to enhance supply chain capabilities. The recent insider purchases are noteworthy as they occurred after the stock price had fallen significantly from its February peak. The buying actions of the COO and Director can be interpreted as a sign of internal confidence in the company's value and growth potential at current price levels. However, it's worth noting that these purchases ($14,700 and $51,237) are relatively small compared to the large-scale selling in February ($1.47 million, $353,862, and $367,293). $BYRN's P/E ratio currently stands at approximately 35.89, which is higher than industry averages. This suggests that investors are placing a premium on the company's growth potential. However, monitoring of potential risk factors, such as cash flow sustainability and reliance on one-time gains, is necessary. In conclusion, Byrna Technologies demonstrates impressive revenue growth and profitability turnaround, and the recent insider purchases can be interpreted as confidence signals for recovery after the stock decline. However, investors should make informed investment decisions with attention to financial health indicators such as cash flow sustainability and high accrual ratios.

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