Sturm, Ruger's 15min chart triggers MACD Death Cross, Bearish Marubozu signal.

Based on the 15-minute chart of Sturm, Ruger, the Moving Average Convergence Divergence (MACD) indicator has triggered a death cross, indicating a bearish trend. Additionally, the stock experienced a bearish marubozu candle at 14:00 on September 3, 2025, suggesting that the bears have taken control of the market and that the downward momentum is likely to persist.

Sturm Ruger & Company (RGR) has been a mainstay in the firearms sector, but recent financial developments have raised concerns for income investors. The company's dividend payout ratio surged to 293% of earnings, signaling unsustainable practices and growing risks [1]. Net income plummeted 65% from $88.3M in 2022 to $30.56M in 2024, with EPS declining at a 33% annualized rate over five years [1]. A decade-long 5.6% annualized dividend decline and a 31% recent cut to $0.16/share highlight management’s prioritization of liquidity over dividend stability [1].

Adding to these concerns, technical indicators have also pointed to a bearish trend. Based on the 15-minute chart of Sturm Ruger, the Moving Average Convergence Divergence (MACD) indicator has triggered a death cross, indicating a bearish trend. Additionally, the stock experienced a bearish marubozu candle at 14:00 on September 3, 2025, suggesting that the bears have taken control of the market and that the downward momentum is likely to persist [2].

For income investors, Sturm Ruger’s dividend now carries significant risk. The combination of an unsustainable payout ratio, declining earnings, and a history of cuts creates a compelling case to reassess exposure. While the company’s strong balance sheet and recent strategic moves (e.g., the Anderson Manufacturing acquisition) offer some hope, these initiatives must translate into meaningful earnings growth to justify the current dividend. Until then, RGR remains a high-risk proposition for those seeking reliable income.

References:
[1] https://www.ainvest.com/news/growing-risk-dividend-cuts-sturm-ruger-rgr-caution-income-investors-2508/
[2] https://www.ainvest.com/news/technical-analysis-sturm-ruger-rgr-2509/