NEW YORK (TheStreet) -- Shares of Smith & Wesson (SWHC) were sinking 6.76% to $27.57 on heavy trading volume late Friday morning as the company's stock was downgraded despite posting solid results for the 2017 fiscal first quarter and providing an upbeat forecast.

Craig-Hallum reduced its rating on the stock to "hold" from "buy" this morning following the quarterly report. The firm also cut its price target to $33 from $35.

The firm believes the current environment is "as good as it gets" for firearm demand, the Fly noted.

Based on past cycles, Craig-Hallum said that November's election and activity after that will likely mark the peak of the current firearms cycle and the stock will react as comparable sales become more difficult.

Following yesterday's market close, the Springfield, MA-based manufacturer of firearms reported earnings of 62 cents per diluted share, exceeding analysts' projections of 53 cents per share.

Revenue jumped 40.1% to $207 million year-over-year and topped analysts' estimates of $198 million.

More than 6.31 million of the company's shares changed hands so far today vs. its average 30-day volume of 1.61 million shares per day.

Separately, TheStreet Ratings Team has a "Buy" rating with a score of A- on the stock.

The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, solid stock price performance, impressive record of earnings per share growth and compelling growth in net income.

Recently, 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 articles's author.

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