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Smith & Wesson shares are getting some heat today from shareholder activists questioning whether gun companies sufficiently disclose their ties to crime, TheStreet TV anchor Rhonda Schaffler reports in the video above. 

NEW YORK (TheStreet) -- Smith & Wesson (SWHC) stock is tumbling by 9.47% to $26.30 on heavy trading volume this afternoon, as shareholder activists increasingly question whether gun companies adequately relay reputational risks to shareholders. 

These activists allege that the companies' lack of transparency is a violation of SEC regulations, the New York Times reported.

In December, New York's public advocate Letitia James asked the SEC to investigate if Smith & Wesson made sufficient disclosures in its financial statements regarding how frequently its products are used in crimes. She also has urged TD Bank to stop financing the firearm manufacturer, the Times notes. 

This past Tuesday, James sent a letter to the SEC claiming that rival gun company Sturm, Ruger's (RGR) products were often used in crimes, and the company failed to disclose the information in financial filings, the Times adds.

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"Gun manufacturers must come clean about the dangers posed by their business and the risks it represents for even their own shareholders," James said in a statement, according to the Times. "As public advocate, I will continue to pursue every possible avenue to hold those gun makers and sellers accountable."

Separately, TheStreet Ratings team rates the stock as a "buy" with a ratings score of A-.

Smith & Wesson's strengths include its robust revenue growth, solid stock price performance, expanding profit margins, good cash flow from operations and compelling growth in net income.

You can view the full analysis from the report here: SWHC

TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this article's author.

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