Roth Capital Boosts Outdoor Holding Rating to Buy and Increases Price Target to $2.25
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Nov 12 2025
0mins
Should l Buy POWW?
Source: Benzinga
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Analyst Views on POWW
Wall Street analysts forecast POWW stock price to rise
2 Analyst Rating
2 Buy
0 Hold
0 Sell
Moderate Buy
Current: 1.890
Low
2.30
Averages
2.40
High
2.50
Current: 1.890
Low
2.30
Averages
2.40
High
2.50
About POWW
Outdoor Holding Company, formerly AMMO, Inc., is an e-commerce-focused company. The Company is the owner of GunBroker.com, the online marketplace for firearms, hunting, shooting and related products. Third-party sellers list items on the site and Federal and state laws govern the sale of firearms and other restricted items. The GunBroker.com Website is an informative and secure way to buy and sell firearms, shooting accessories, and other outdoor gear online. GunBroker promotes responsible ownership of guns and firearms. GunBroker enables payment processing, carting ability, GunBroker Analytics, and GunBroker Advertising. GunBroker Analytics, through the compilation and refinement of Marketplace data, offers e-commerce market analytics to its industry peers, allowing them to manage business strategy and planning. Its advertising offerings include content creation for manufacturers, email campaigns and banner ads.
About the author

Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
- Cash Dividend Announcement: Outdoor Holding Company has announced a cash dividend of $0.546875 per share for its 8.75% Series A Cumulative Redeemable Preferred Stock, payable on March 16, 2026, reflecting the company's stable financial condition and commitment to shareholders.
- Preferred Stock Characteristics: The Series A Preferred Stock is a redeemable perpetual preferred stock that offers fixed dividend returns, attracting investors seeking stable income, thereby enhancing the company's capital structure and market appeal.
- Market Position: Through its subsidiary GunBroker.com, the largest online marketplace for firearms, Outdoor Holding Company continues to maintain a leading position in the outdoor and shooting sports industries, driving overall revenue growth for the company.
- Future Outlook: The forward-looking statements mentioned in the announcement indicate that despite market fluctuations, Outdoor Holding Company remains committed to achieving long-term growth and sustainability, boosting investor confidence in its future performance.
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- Significant Sales Growth: Outdoor Holding Company reported net sales of $13.4 million for Q3 2026, reflecting a 7% year-over-year increase that outperformed broader trends in consumer spending, demonstrating the company's strong performance and adaptability in the e-commerce market.
- Effective Cost Control: Operating expenses, excluding depreciation and amortization, decreased by approximately $22 million year-over-year, primarily due to reductions in corporate headcount, legal spend, and facilities costs, which further enhanced the company's profitability.
- Improved Profitability: The company achieved a net income of nearly $1.5 million in Q3, with adjusted EBITDA reaching $6.5 million, representing 49% of net sales, indicating ongoing improvements in profitability and healthy cash flow growth.
- Strategic Investments and Outlook: The company plans to invest between $60,000 and $120,000 in a strategic partnership with Master FFL to optimize the transfer process for regulated products, while also advancing the development of a universal payments system to enhance user experience and future profitability.
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- Earnings Beat: Outdoor Holding Company reported a Q3 GAAP EPS of $0.01, exceeding expectations by $0.02, indicating stability in profitability and increased market confidence.
- Significant Revenue Growth: The company achieved revenues of $13.39 million in Q3, a 6.9% year-over-year increase, surpassing expectations by $0.87 million, reflecting effective sales strategies and strong market demand recovery.
- Adjusted EBITDA Improvement: Adjusted EBITDA rose to $6.55 million from $4.26 million in the same period last year, showcasing significant improvements in cost control and operational efficiency, thereby enhancing financial health.
- Strong Cash Flow: The quarter generated over $4 million in cash from operations, demonstrating robust cash generation capabilities that provide a solid foundation for future investments and shareholder returns.
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- Significant Revenue Growth: Outdoor Holding Company reported a 7% year-over-year increase in net revenues to $13.39 million in Q3, reflecting sustained demand in the firearms market and effective market strategies.
- Profitability Recovery: The company achieved a net income of $1.46 million, a substantial improvement from a net loss of $21.18 million in the same quarter last year, marking the second consecutive quarter of profitability and demonstrating the success of its transformation strategy.
- Operational Efficiency Gains: Operating expenses decreased by $21.76 million year-over-year, indicating significant achievements in resolving legal disputes and controlling costs, thereby enhancing financial stability.
- Strong Cash Flow: The company generated over $4 million in cash from operations during the quarter, increasing total cash and cash equivalents to $69.9 million, which enhances flexibility for future investments and shareholder returns.
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- Earnings Announcement: Outdoor Holding Company is set to announce its FQ3 earnings results on February 9th before market open, with consensus EPS estimate at -$0.01 and revenue estimate at $12.52 million, indicating cautious market sentiment regarding the company's financial performance.
- Historical Performance: Over the past two years, Outdoor Holding has beaten EPS estimates 63% of the time and revenue estimates 63% of the time, demonstrating a consistent ability to meet financial forecasts and instilling confidence among investors.
- Stock Buyback Plan: The company has initiated a $15 million stock buyback plan aimed at reducing the number of shares outstanding, which could enhance EPS and potentially drive stock price appreciation, reflecting a proactive approach to shareholder value.
- SEC Settlement: Outdoor Holding has settled its SEC probe without incurring any penalties, alleviating market concerns regarding its compliance and further solidifying its position in the marketplace.
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- Regulatory Changes Expected: The U.S. government may announce easing of gun regulations at the National Shooting Sports Foundation trade show, likely impacting major gun stocks like Smith & Wesson (SWBI) and Sturm, Ruger (RGR), potentially stimulating sales growth.
- Positive Market Reaction: As trading begins this week, retail sentiment has shifted to bullish for RGR and neutral for AOUT, indicating market optimism regarding potential policy changes and their implications for stock performance.
- Sales Growth Potential: Easing restrictions on private sales and exports is expected to boost firearm sales, likely leading to strong short-term performance for SWBI, RGR, and other related stocks, reflecting market sensitivity to regulatory changes.
- Political Context Impact: The Trump administration's intent to reverse Biden-era gun restrictions highlights the significance of gun policy in U.S. politics, potentially further driving growth in the firearms industry and increasing investor interest.
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