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

BRP Inc. (NASDAQ:DOOO) gapped up prior to trading on Thursday following a better than expected earnings announcement. 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.

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

BRP Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Monday, July 14th. Investors of record on Monday, June 30th will be given a $0.1557 dividend. This represents a $0.62 dividend on an annualized basis and a yield of 1.41%. This is a positive change from BRP’s previous quarterly dividend of $0.15. The ex-dividend date of this dividend is Monday, June 30th. BRP’s dividend payout ratio (DPR) is presently -29.21%.

Analyst Upgrades and Downgrades

A number of brokerages recently commented on DOOO. TD Securities upgraded BRP from a “hold” rating to a “buy” rating in a research report on Friday. Citigroup upgraded BRP from a “sell” rating to a “neutral” rating and lifted their price objective for the stock from $27.00 to $37.00 in a research report on Friday, April 4th. Desjardins upgraded BRP from a “hold” rating to a “buy” rating in a research report on Friday. Robert W. Baird reiterated a “neutral” rating and issued a $43.00 price objective (down from $48.00) on shares of BRP in a research report on Friday, April 4th. Finally, UBS Group reduced their target price on BRP from $45.00 to $35.00 and set a “neutral” rating on the stock in a report on Wednesday, April 23rd. Eight investment analysts have rated the stock with a hold rating, three have assigned a buy rating and one has assigned a strong buy rating to the stock. According to data from MarketBeat, the stock currently has an average rating of “Hold” and an average price target of $53.75.

Hedge Funds Weigh In On BRP

Hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Quadrant Capital Group LLC boosted its holdings 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 buying an additional 490 shares during the last quarter. Signaturefd LLC boosted its holdings in BRP by 296.1% during the fourth quarter. Signaturefd LLC now owns 1,208 shares of the company’s stock worth $61,000 after buying an additional 903 shares during the last quarter. Acadian Asset Management LLC bought a new position in shares of BRP during the 1st quarter valued at about $70,000. Dnca Finance lifted its holdings in shares of BRP by 36.1% during the 4th quarter. Dnca Finance now owns 1,390 shares of the company’s stock valued at $71,000 after purchasing an additional 369 shares in the last quarter. Finally, C M Bidwell & Associates Ltd. bought a new position in shares of BRP during the 4th quarter valued at about $77,000.

BRP Price 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 cap of $3.23 billion, a P/E ratio of 23.54 and a beta of 1.17. The company has a fifty day moving average price of $35.51 and a two-hundred 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.