Non-lethal arms maker’s stock soars amid celebrity endorsement deals

Byrna Technologies, a maker of personal defense products, has leveraged the influence of three prominent U.S. radio personalities to integrate its wares into their shows. This strategic move has provided the company with weekly access to an audience of around 1.5 million listeners and propelled Byrna’s shares to climb nearly 7% since the announcement of these deals on May 23.

Details

Over the past five days, Byrna Technologies’ stock has risen by 6.72%, reaching $12.22 per share. Last week, the company announced deals with three prominent radio hosts: Dan Bongino, Dana Loesch, and Michael Gallagher. Bongino also hosts a podcast with a weekly download rate of 1.2 million. Starting in June, Byrna will participate in their shows, promoting its vision of safety to a combined audience of about 1.5 million people.

Byrna Technologies’ shares have soared 90% this year, riding a 714% upswing since 2006.

Byrna’s Activities

Byrna Technologies Inc. (formerly Security Devices International until March 2020) has carved out a niche making non-lethal weapons since its 2005 founding.  Among its early developments were riot-control projectiles using embedded wireless electro-muscular disruption or kinetic energy to incapacitate without serious injury or loss of life.

Byrna supplies the military, law enforcement, corrections, and private security sectors with projectiles and weapons it touts as safer, more innovative alternatives to traditional firearms. A key offering is a CO2-powered pistol billed as a less-lethal option for self-defense situations where deadly force isn’t required, the company says.  

At the recent 14th annual LD Micro conference in New York, Byrna stated that its solutions allow customers to protect themselves, their families, and their communities without deploying lethal firearms. 

The April 8-9 event featured presentations to investors and journalists from 79 innovative small and mid-cap firms. In its presentation, Byrna highlighted a potential U.S. customer base of 250 million for its products.

Celebrity Endorsements

Byrna markets its products in the U.S. via its e-commerce site and internationally through distribution partnerships aided by celebrity promoters. 

As far back as 2010-11, Fox News host Sean Hannity mentioned the company on his program. Mr. Hannity later deepened that collaboration, providing Byrna access to his audience of over 16 million viewers.

Byrna also partners with journalist Glenn Beck and his company, Blaze Media. Under this agreement, the company will be featured on Beck’s shows throughout 2024. These shows reach over 1 million listeners and are broadcast on over 300 American radio stations. The company noted that Blaze Media will boost Byrna’s visibility through digital television ads, podcasts, and live commercials on Blaze TV.

Investor Guidance

According to MarketWatch, analysts are bullish on Byrna Technologies’ shares, with an average target price of $16.63, implying a 36% upside from the May 28 close.

Byrna reported fiscal first-quarter revenue surged 98% to $16.7 million for the period ended Feb. 29. The company credited the jump to a shift in its advertising strategy. Byrna said celebrity endorsement deals continue to deliver over a five-times return on marketing investments. 

In the wake of the results, Ladenburg Thalmann raised its price target on Byrna to $16.25, up 27%. According to Investing.com, the firm’s recent bullish assessment highlighted the company’s financials as potentially appealing to investors.