Shares of electroshock gun maker TASER International (TASR) climbed over 5% Monday to a new 2-month high of $14.68. On Friday, TASR gapped open higher gaining nearly 10%. Over the past week speculation that riots in Ferguson, Missouri could boost demand for the company’s cameras prompted the stock to gain more than 21%.
Investors are speculating that following the event in Ferguson on Aug. 9, where an unarmed man was apparently shot while facing an officer, the body cameras produced by TASER Int’l, which can be worn by police officers, will soon be a requirement for police departments nationwide, creating a revenue stream for the company.
However, in a Bloomberg report on Friday, CRT Capital’s Brian Ruttenbur argued that TASR “is running on more speculation that police officers may be wearing these things [TASER’s camera], adding ticker’s pps spike is “directly related to what’s happening in Missouri.”
The recent rally in shares of TASER came after the stock plunged as much 49% from a nine-year high in February.
The chart below shows where the equity has traded over the last year, with the 50-day and 200-day moving averages included.