Shares of gun makers rose Thursday, even after a Connecticut court ruled that the maker of AR-15 semi-automatic assault rifles could be sued over the Sandy Hook Elementary School massacre. American Outdoor Brands Corp.’s stock AOBC, +1.82% climbed 2.4% and Sturm Ruger & Co. shares RGR, +1.50% hiked up 1.9%. Shares of ammunition maker Vista Outdoor Inc. VSTO, -0.60% slipped 0.2%, but pared earlier losses of as much as 1.9%. Industry analysts say the regulatory environment is among the biggest drivers of demand for guns; the stricter the environment appears, the greater the demand. Gun maker stocks have been hurt since President Trump was elected as worries over tougher regulations waned. Since the election, American Outdoor’s stock has plunged 66.3%, Sturm Ruger shares have shed 20.5% and the S&P 500 SPX, -0.01% has gained 31.4%. The Connecticut Supreme Court ruled Thursday that Remington Outdoor Co., the owner of the Bushmaster rifle brand, could be sued because it violated laws by allegedly promoting the rifle as a combat weapon, according to a report in The Wall Street Journal.
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