Polaris (NYSE:PII) Earns "Market Perform" Rating from BMO Capital Markets

Key Points

• BMO Capital Markets has raised its price target for Polaris (NYSE:PII) from $33.00 to $52.00, while maintaining a "market perform" rating.
• Institutional investors have significantly increased their holdings in Polaris, with firms like RWWM Inc. and Goldman Sachs Group raising their positions by over 169% and 677% respectively.
• Polaris reported a quarterly earnings surprise with earnings per share of $0.40, surpassing the consensus estimate of $0.05, despite a 5.5% year-over-year decline in revenue.

BMO Capital Markets reaffirmed their market perform rating on shares of Polaris (NYSE:PII - Free Report) in a research note published on Wednesday morning, Marketbeat.com reports. BMO Capital Markets currently has a $52.00 price target on the stock, up from their previous price target of $33.00.

Other analysts also recently issued research reports about the stock. Truist Financial reduced their price target on shares of Polaris from $55.00 to $30.00 and set a "hold" rating for the company in a research report on Monday, April 14th. Citigroup reissued a "sell" rating and issued a $27.00 price target (up previously from $23.00) on shares of Polaris in a research report on Monday, June 16th. Wall Street Zen downgraded shares of Polaris from a "hold" rating to a "sell" rating in a research report on Thursday, May 8th. Morgan Stanley reduced their price target on shares of Polaris from $31.00 to $29.00 and set an "equal weight" rating for the company in a research report on Thursday, May 1st. Finally, Royal Bank Of Canada lifted their price objective on shares of Polaris from $34.00 to $56.00 and gave the stock a "sector perform" rating in a report on Wednesday. Two analysts have rated the stock with a sell rating, eleven have given a hold rating and one has assigned a buy rating to the stock. According to data from MarketBeat, the company has an average rating of "Hold" and a consensus target price of $48.33.

Polaris Trading Down 6.3%

Shares of PII stock traded down $3.34 during trading hours on Wednesday, hitting $49.57. 799,021 shares of the company were exchanged, compared to its average volume of 1,742,313. The company has a 50 day simple moving average of $44.31 and a two-hundred day simple moving average of $42.79. Polaris has a fifty-two week low of $30.92 and a fifty-two week high of $87.83. The company has a debt-to-equity ratio of 1.17, a quick ratio of 0.37 and a current ratio of 1.04. The firm has a market cap of $2.79 billion, a P/E ratio of -26.30 and a beta of 1.05.

Polaris (NYSE:PII - Get Free Report) last posted its quarterly earnings results on Tuesday, July 29th. The company reported $0.40 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.05 by $0.35. Polaris had a negative net margin of 1.57% and a positive return on equity of 5.16%. The business had revenue of $1.85 billion during the quarter, compared to the consensus estimate of $1.73 billion. During the same quarter last year, the firm posted $1.38 EPS. Polaris's revenue was down 5.5% compared to the same quarter last year. Equities analysts anticipate that Polaris will post 1.11 EPS for the current year.

Polaris Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Monday, September 15th. Shareholders of record on Tuesday, September 2nd will be issued a dividend of $0.67 per share. This represents a $2.68 annualized dividend and a yield of 5.4%. Polaris's dividend payout ratio (DPR) is 372.22%.

Hedge Funds Weigh In On Polaris

Several institutional investors and hedge funds have recently bought and sold shares of the company. Koss Olinger Consulting LLC grew its holdings in Polaris by 0.8% during the second quarter. Koss Olinger Consulting LLC now owns 40,667 shares of the company's stock valued at $1,653,000 after purchasing an additional 304 shares during the period. Ingalls & Snyder LLC bought a new stake in Polaris in the 2nd quarter valued at about $222,000. Focus Partners Advisor Solutions LLC raised its stake in Polaris by 55.9% in the 2nd quarter. Focus Partners Advisor Solutions LLC now owns 10,538 shares of the company's stock valued at $428,000 after acquiring an additional 3,777 shares during the period. State of New Jersey Common Pension Fund D raised its stake in Polaris by 14.1% in the 2nd quarter. State of New Jersey Common Pension Fund D now owns 47,998 shares of the company's stock valued at $1,951,000 after acquiring an additional 5,943 shares during the period. Finally, AlphaQuest LLC raised its stake in Polaris by 153.5% in the 2nd quarter. AlphaQuest LLC now owns 3,584 shares of the company's stock valued at $146,000 after acquiring an additional 2,170 shares during the period. 88.06% of the stock is owned by institutional investors.

About Polaris

Polaris Inc designs, engineers, manufactures, and markets powersports vehicles in the United States, Canada, and internationally. It operates through three segments: Off-Road, On-Road, and Marine. The company offers off-road vehicles (ORVs), including all-terrain vehicles and side-by-side vehicles; military and commercial ORVs; snowmobiles; motorcycles; and moto-roadsters, quadricycles, and boats.