After the Sandy Hook tragedy, investors tried to hold firearm manufacturers accountable for producing the guns used in the incident. However, the increase in sales that followed suggests this effort wasn’t successful. According to Rommel Dionisio, an analyst at Wunderlich Securities, after Sandy Hook, which was a pivotal event in the industry, many high-profile endowments and state pension funds announced their intention to divest. This announcement happened alongside a notable rise in firearm sales.
Unlike the reactions to previous shootings, the horror of Sandy Hook led to a change in how investors viewed gun manufacturers. These companies began to be seen as “sin” stocks, a term typically used for businesses involved in alcohol, tobacco, and gambling. This labeling was a result of the heightened public scrutiny directed at firearm producers and their role in mass shootings and everyday violence.