BRP Inc. (NASDAQ:DOOO) Sees Significant Increase in Short Interest

BRP Inc. (NASDAQ:DOOO) was the recipient of a large increase in short interest during the month of June. As of June 15th, there was short interest totalling 1,680,000 shares, an increase of 8.4% from the May 31st total of 1,550,000 shares. Approximately 5.1% of the shares of the company are sold short. Based on an average trading volume of 130,900 shares, the short-interest ratio is presently 12.8 days.

BRP Stock Performance

NASDAQ DOOO opened at $64.52 on Thursday. BRP has a 1-year low of $57.15 and a 1-year high of $92.74. The company has a market capitalization of $4.78 billion, a P/E ratio of 11.67 and a beta of 2.06. The business has a 50 day moving average price of $65.73 and a 200 day moving average price of $66.88. The company has a debt-to-equity ratio of 4.23, a current ratio of 1.35 and a quick ratio of 0.46.

BRP (NASDAQ:DOOO) last released its quarterly earnings data on Friday, May 31st. The company reported $0.70 earnings per share for the quarter, beating the consensus estimate of $0.65 by $0.05. BRP had a return on equity of 101.72% and a net margin of 5.87%. The firm had revenue of $1.50 billion during the quarter, compared to the consensus estimate of $1.49 billion. Sell-side analysts expect that BRP will post 4.49 EPS for the current fiscal year.

BRP Cuts Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Friday, July 12th. Investors of record on Friday, June 28th will be paid a $0.152 dividend. This represents a $0.61 annualized dividend and a yield of 0.94%. The ex-dividend date of this dividend is Friday, June 28th. BRP’s payout ratio is currently 11.03%.

Hedge Funds Weigh In On BRP

Hedge funds have recently bought and sold shares of the company. The Manufacturers Life Insurance Company increased its position in BRP by 539.1% during the fourth quarter. The Manufacturers Life Insurance Company now owns 559,543 shares of the company’s stock worth $40,105,000 after buying an additional 471,986 shares in the last quarter. Norges Bank purchased a new position in BRP during the fourth quarter worth $30,666,000. Goldman Sachs Group Inc. increased its position in BRP by 35.0% during the fourth quarter. Goldman Sachs Group Inc. now owns 711,049 shares of the company’s stock worth $50,975,000 after buying an additional 184,313 shares in the last quarter. Royal Bank of Canada increased its position in BRP by 34.0% during the third quarter. Royal Bank of Canada now owns 589,213 shares of the company’s stock worth $44,697,000 after buying an additional 149,529 shares in the last quarter. Finally, Intact Investment Management Inc. increased its position in BRP by 323.1% during the fourth quarter. Intact Investment Management Inc. now owns 125,100 shares of the company’s stock worth $8,954,000 after buying an additional 95,530 shares in the last quarter.

Analyst Ratings Changes

Several analysts have commented on DOOO shares. CIBC reduced their price objective on BRP from $110.00 to $100.00 and set an “outperformer” rating for the company in a research note on Monday, June 3rd. Desjardins raised their price target on BRP from $112.00 to $137.00 and gave the company a “buy” rating in a report on Tuesday, April 2nd. Finally, Raymond James reduced their price target on BRP from $114.00 to $108.00 and set a “strong-buy” rating for the company in a report on Monday, April 1st. Two research analysts have rated the stock with a hold rating, two have assigned a buy rating and one has issued a strong buy rating to the company. According to MarketBeat.com, the company has a consensus rating of “Moderate Buy” and an average price target of $124.50.

About BRP

BRP Inc, together with its subsidiaries, designs, develops, manufactures, distributes, and markets powersports vehicles and marine products in the United States, Canada, Europe, the Asia Pacific, Mexico, Austria, and internationally. The Powersports segment offers year-round products, such as Can-Am all-terrain vehicles, side-by-side vehicles, and three-wheeled vehicles; and seasonal products, including Ski-Doo and Lynx snowmobiles, Sea-Doo personal watercrafts and pontoons, Rotax engines for karts and recreational aircraft, and Pinion gearboxes with smart shift systems.