Shares of firearm manufacturers soared in the immediate aftermath of the deadliest shooting in United States history, with Smith & Wesson parent American Outdoor Brands Corporation (AOBC) and Sturm Ruger & Company (RGR) both gaining over 3% at midday.

LAS VEGAS SHOOTING: Sunday night, "lone wolf" Stephen Paddock killed at least 50 people and wounded more than 400 at an open air concert at MGM Resorts' (MGM) Mandalay Bay Hotel and Casino before being fatally shot, according to law enforcement officials.

POTENTIAL REGULATORY REACTION: Analysts have opined that the regulatory environment is one of the largest drivers for gun demand, with fears of tighter regulation spurring gun sales and gun maker stocks in the past.

RECENT WEDBUSH UPGRADE: On September 25, Wedbush upgraded American Outdoor Brands to Outperform from Neutral, saying a recent survey of gun owners painted a "picture of a group that is far from satisfied with their current level of ownership, and who anticipate an even higher level of gun purchases over the next year vs. the last." The firm noted that there was, at that time, a lack of urgency for gun buyers.

SILENCER LEGISLATION: The U.S. House of Representatives is set to move forward with a vote on a gun lobby-backed bill that would deregulate the sale of gun silencers. The Sportsmen Heritage and Recreational Enhancement Act, or SHARE Act, would remove gun silencers from the list of items regulated by the 1934 National Firearms Act, and could be voted on as soon as this week, according to reports. The legislation had previously been delayed when Rep. Steve Scalise was shot at a Congressional baseball practice in June.

PRICE ACTION: Near noon, American Outdoor shares are up 3.6% to $15.80 while Sturm Ruger is up 3.3% to $53.40 per share.