BRP (NASDAQ:DOOO) Shares Gap Up Following Earnings Beat

BRP Inc. (NASDAQ:DOOO) gapped up before the market opened on Wednesday after the company announced better than expected quarterly earnings. The stock had previously closed at $35.54, but opened at $38.10. BRP shares last traded at $39.27, with a volume of 192,558 shares.

The company reported $0.69 earnings per share for the quarter, topping the consensus estimate of $0.62 by $0.07. BRP had a return on equity of 61.20% and a net margin of 2.29%. The company had revenue of $1.44 billion during the quarter, compared to analysts’ expectations of $1.97 billion.

BRP Increases Dividend

The firm also recently declared a quarterly dividend, which will be paid on Friday, April 18th. Shareholders of record on Friday, April 4th will be given a dividend of $0.1508 per share. The ex-dividend date of this dividend is Friday, April 4th. This is a boost from BRP’s previous quarterly dividend of $0.15. This represents a $0.60 annualized dividend and a yield of 1.70%. BRP’s payout ratio is 30.85%.

Analysts Set New Price Targets

Separately, Citigroup downgraded BRP from a “neutral” rating to a “sell” rating and lowered their target price for the company from $48.00 to $29.00 in a research report on Thursday, March 20th. One equities research analyst has rated the stock with a sell rating, six have given a hold rating and one has assigned a strong buy rating to the company’s stock. According to data from MarketBeat, BRP has an average rating of “Hold” and an average price target of $87.80.

Institutional Trading of BRP

A number of hedge funds have recently made changes to their positions in DOOO. Quadrant Capital Group LLC boosted its position in BRP by 259.3% during the fourth quarter. Quadrant Capital Group LLC now owns 679 shares of the company’s stock worth $35,000 after purchasing an additional 490 shares during the period. Signaturefd LLC grew its holdings in BRP by 296.1% in the 4th quarter. Signaturefd LLC now owns 1,208 shares of the company’s stock valued at $61,000 after buying an additional 903 shares in the last quarter. Dnca Finance increased its position in BRP by 36.1% during the 4th quarter. Dnca Finance now owns 1,390 shares of the company’s stock worth $71,000 after buying an additional 369 shares during the period. C M Bidwell & Associates Ltd. acquired a new stake in shares of BRP during the fourth quarter worth $77,000. Finally, DRW Securities LLC bought a new stake in shares of BRP in the third quarter valued at about $161,000.

BRP Trading Down 7.2 %

The company has a debt-to-equity ratio of 5.19, a current ratio of 1.37 and a quick ratio of 0.57. The firm has a market capitalization of $2.59 billion, a P/E ratio of 18.86 and a beta of 2.03. The business’s 50-day moving average is $42.90 and its 200 day moving average is $49.73.

BRP Company Profile

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.