(Bloomberg) -- Shares of Smith & Wesson Brands Inc. rose Friday, putting them on track for their best week in a year after the gun maker reported quarterly profit that topped analysts’ expectations and raised its dividend.

The stock jumped as much as 13%, the biggest gain since July 1, after fourth-quarter earnings per share from continuing operations came in at 82 cents, compared with the average analyst estimate of 67 cents. The weapons manufacturer also announced a 25% quarterly dividend boost to 10 cents per share. 

Friday’s rally comes after a gain on Thursday when the US Supreme Court established the right to carry firearms in New York, signaling a favorable outcome for the industry in the aftermath of recent mass shootings. Smith & Wesson’s two-day stock rally has made for a strong week, with its shares climbing about 20% and poised for their best five-day performance since June 2021. 

The stock’s low valuation and Smith & Wesson’s significant free cash flow has allowed the company to buy back nearly 11 million of its shares, said Craig-Hallum Capital Group LLC analyst Steve Dyer. “We expect existing cash and future free cash flow will continue to be deployed in shareholder-friendly ways and would expect a resumption of the buyback is likely in August,” he said in a report.

Smith & Wesson has two buy ratings and one hold recommendation with analysts expecting a 33% increase in its shares to $21.50 over the next 12 months, according to data compiled by Bloomberg.

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