BRP (NASDAQ:DOOO) Shares Gap Up After Strong Earnings

BRP Inc. (NASDAQ:DOOO) shares gapped up prior to trading on Thursday following a stronger than expected earnings report. The stock had previously closed at $35.92, but opened at $38.18. BRP shares last traded at $40.48, with a volume of 46,722 shares changing hands.

The company reported $0.33 EPS for the quarter, topping the consensus estimate of $0.29 by $0.04. BRP had a net margin of 2.29% and a return on equity of 61.20%. The firm had revenue of $1.34 billion for the quarter, compared to the consensus estimate of $1.78 billion.

BRP Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Monday, July 14th. Investors of record on Monday, June 30th will be paid a dividend of $0.1557 per share. This is an increase from BRP’s previous quarterly dividend of $0.15. The ex-dividend date of this dividend is Monday, June 30th. This represents a $0.62 annualized dividend and a yield of 1.41%. BRP’s dividend payout ratio is presently -29.21%.

Wall Street Analysts Forecast Growth

Several brokerages have commented on DOOO. Wall Street Zen raised BRP from a “hold” rating to a “buy” rating in a research report on Friday. UBS Group dropped their target price on shares of BRP from $45.00 to $35.00 and set a “neutral” rating on the stock in a research report on Wednesday, April 23rd. Desjardins upgraded shares of BRP from a “hold” rating to a “buy” rating in a research note on Friday. Citigroup upgraded shares of BRP from a “sell” rating to a “neutral” rating and raised their price target for the stock from $27.00 to $37.00 in a research report on Friday, April 4th. Finally, TD Securities raised shares of BRP from a “hold” rating to a “buy” rating in a research report on Friday. Eight research analysts have rated the stock with a hold rating, three have issued a buy rating and one has issued a strong buy rating to the company’s stock. According to data from MarketBeat.com, the stock presently has an average rating of “Hold” and an average price target of $53.75.

Institutional Investors Weigh In On BRP

A number of institutional investors have recently bought and sold shares of the business. FIL Ltd lifted its holdings in shares of BRP by 176.2% during the 4th quarter. FIL Ltd now owns 792,000 shares of the company’s stock worth $40,337,000 after acquiring an additional 505,228 shares during the period. CIBC Asset Management Inc raised its position in BRP by 14.0% in the fourth quarter. CIBC Asset Management Inc now owns 133,038 shares of the company’s stock worth $7,270,000 after purchasing an additional 16,379 shares in the last quarter. Invesco Ltd. lifted its stake in BRP by 18.1% during the fourth quarter. Invesco Ltd. now owns 1,163,257 shares of the company’s stock worth $59,175,000 after purchasing an additional 178,039 shares during the period. Raymond James Financial Inc. acquired a new stake in BRP during the fourth quarter valued at approximately $916,000. Finally, Alberta Investment Management Corp grew its stake in shares of BRP by 44.2% in the 4th quarter. Alberta Investment Management Corp now owns 47,300 shares of the company’s stock valued at $2,408,000 after purchasing an additional 14,500 shares during the period.

BRP Stock Performance

The company has a current ratio of 1.37, a quick ratio of 0.57 and a debt-to-equity ratio of 5.19. The firm has a market capitalization of $3.23 billion, a price-to-earnings ratio of 23.54 and a beta of 1.17. The stock has a fifty day moving average price of $35.51 and a 200-day moving average price of $42.88.

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.