BRP (TSE:DOO) Trading Down 35.7% – Should You Sell?

BRP Inc. (TSE:DOO) was down 35.7% during trading on Wednesday . The company traded as low as C$67.85 and last traded at C$69.45. Approximately 670,343 shares traded hands during trading, an increase of 176% from the average daily volume of 242,794 shares. The stock had previously closed at C$108.04.

Analysts Set New Price Targets

A number of brokerages have recently issued reports on DOO. Raymond James Financial cut their price objective on shares of BRP from C$117.00 to C$115.00 in a research note on Friday, March 27th. Wells Fargo & Company increased their target price on BRP from C$105.00 to C$110.00 and gave the company an “overweight” rating in a report on Friday, March 27th. Desjardins lifted their price target on BRP from C$130.00 to C$138.00 and gave the stock a “buy” rating in a research note on Friday, March 27th. Royal Bank Of Canada cut their target price on shares of BRP from C$131.00 to C$124.00 and set an “outperform” rating on the stock in a report on Monday, March 30th. Finally, Ci Capital lowered their price target on shares of BRP from C$128.00 to C$119.00 and set a “buy” rating for the company in a report on Friday, March 27th. One research analyst has rated the stock with a Strong Buy rating, eleven have issued a Buy rating and one has issued a Hold rating to the company. According to MarketBeat, the company presently has a consensus rating of “Buy” and a consensus price target of C$115.14.

BRP Price Performance

The company has a market cap of C$5.00 billion, a PE ratio of 17.30, a price-to-earnings-growth ratio of 2.05 and a beta of 0.94. The business has a 50 day moving average of C$99.20 and a 200 day moving average of C$97.98. The company has a debt-to-equity ratio of 443.59, a current ratio of 1.27 and a quick ratio of 0.20.

BRP (TSE:DOO) last posted its earnings results on Thursday, March 26th. The company reported C$2.21 EPS for the quarter. The firm had revenue of C$2.46 billion during the quarter. BRP had a net margin of 3.45% and a return on equity of 54.95%. As a group, research analysts predict that BRP Inc. will post 6.890971 EPS for the current year.

BRP Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Friday, April 24th. Shareholders of record on Friday, April 24th will be issued a dividend of $0.25 per share. The ex-dividend date is Friday, April 10th. This represents a $1.00 dividend on an annualized basis and a dividend yield of 1.5%. BRP’s dividend payout ratio is 21.77%.

About BRP

BRP designs, develops, manufactures, distributes, and markets snowmobiles, all-terrain vehicles, and personal watercraft under the Ski-Doo, Sea-Doo, Can-Am, and Lynx brand names. It also builds engines under the Rotax brand (after discontinuing the Evinrude outboard engine business in 2020) and offers clothing, parts, and accessories that cater to its core consumers. In 2018, BRP created a marine group, acquiring boat manufacturers Alumacraft, Triton (which makes Manitou pontoon boats), and Telwater (in Australia).