Sturm, Ruger & Co. (RGR) and other firearms stocks were rising in Monday trading after the US Commerce Department's Bureau of Industry and Security, or BIS, said it has rescinded a Biden-era rule that imposed heavy export controls on civilian firearms, ammunition, and related parts.

Under the new rule, most pistols, rifles, and non-long-barrel shotguns will still require export licenses. However, long-barrel shotguns and many optics can now be shipped license-free to US allies and approved partners, the BIS said, adding that paperwork for license applications has been simplified.

"BIS and interagency partners will continue to screen firearms license applications to reduce the risk of weapons ending up in the hands of wrongdoers," it added.

Shares of Sturm, Ruger & Co. rose 3.4%, Smith & Wesson Brands (SWBI) added 2.8%, and Outdoor Holding (POWW) climbed 8% in recent trading.

Price: 44.32, Change: +0.95, Percent Change: +2.19