Shares of a number of firearm and ammunition manufacturers have risen sharply since the deadly mass shooting at an elementary school in Uvalde, Texas, on May 24.
Shares of Sturm, Ruger & Co., the largest U.S. gun manufacturer by market cap, jumped about 5.7 percent, and ammunition maker Olin 3.8 percent. Meanwhile, Ammo Inc. stock surged more than 12 percent in the wake of the shooting.
The rise in stock price comes amid renewed calls for gun control measures such as enhanced background checks and laws around storing weapons.
It also suggests that investors anticipate sales to rise as customers flock to gun stores to purchase new weapons and stock up on ammunition before tighter gun control legislation is potentially introduced.
A similar phenomenon with regards to a rise in the stock prices of gunmakers took place 2016, when Smith & Wesson jumped 20 percent after a gunman killed 49 people at an Orlando nightclub, according to The Washington Post.
In 2019, following mass shootings in Dayton, Ohio, and El Paso, which prompted former President Donald Trump to advocate stricter background check laws, stock prices of gunmakers also saw a boost.
Shares of gun makers also rose ahead of the 2020 presidential election when then-Democratic candidate Joe Biden was shown to be leading in the polls amid the prospect of stricter gun regulation.
"When in God’s name will we do what needs to be done to, if not completely stop, fundamentally change the amount of the carnage that goes on in this country?" Biden said.
Salvador Ramos, 18, allegedly shot his grandmother on May 24 before driving toward Robb Elementary School in Uvalde and opening fire on the campus, killing 19 children and two adults.