Colt Manufacturing has announced it's halting production of modern sporting rifles like the AR-15, and despite prominent news agencies incorrectly ascribing it to the recent spate of mass shootings, it is still a significant development -- one that could weigh on Sturm, Ruger (NYSE: RGR) and American Outdoor Brands (NASDAQ: AOBC).
Although the gun market has seemingly started to rebound, with the FBI conducting more criminal background checks lately compared to a year ago, Colt's decision to temporarily leave the consumer rifle market suggests there is still a substantial overhang facing other gunmakers.
The AR platform is the most popular firearm in the U.S. Image source: Getty Images.