BRP Inc. (NASDAQ:DOOO) Declares Dividend Increase - $0.22 Per Share

Key Points

• BRP Inc. announced a quarterly dividend of $0.22, reflecting a 38.1% increase from its previous dividend of $0.16.
• The company has a payout ratio of 17.9%, indicating that its dividend is well-covered by earnings, with an expected future payout ratio of 18.4%.
• BRP shares have been upgraded by several analysts, with a consensus rating of "Moderate Buy" and a target price of $43.00.

BRP Inc. (NASDAQ:DOOO - Get Free Report) declared a quarterly dividend on Thursday, August 28th, RTT News reports. Stockholders of record on Tuesday, September 30th will be given a dividend of 0.215 per share on Tuesday, October 14th. This represents a c) dividend on an annualized basis and a dividend yield of 1.3%. The ex-dividend date of this dividend is Tuesday, September 30th. This is a 38.1% increase from BRP's previous quarterly dividend of $0.16.

BRP has a dividend payout ratio of 17.9% meaning its dividend is sufficiently covered by earnings. Equities analysts expect BRP to earn $3.43 per share next year, which means the company should continue to be able to cover its $0.63 annual dividend with an expected future payout ratio of 18.4%.

BRP Stock Performance

BRP stock traded up $3.73 during mid-day trading on Tuesday, reaching $66.71. 869,491 shares of the stock traded hands, compared to its average volume of 243,331. BRP has a 12-month low of $31.78 and a 12-month high of $72.21. The business's 50-day moving average is $52.43 and its 200-day moving average is $43.55. The company has a debt-to-equity ratio of 5.85, a current ratio of 1.34 and a quick ratio of 0.58. The stock has a market capitalization of $4.87 billion, a PE ratio of -277.96 and a beta of 1.19.

BRP (NASDAQ:DOOO - Get Free Report) last announced its earnings results on Friday, August 29th. The company reported $0.67 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.33 by $0.34. The business had revenue of $1.36 billion for the quarter, compared to analysts' expectations of $1.77 billion. BRP had a positive return on equity of 64.24% and a negative net margin of 0.34%. BRP has set its FY 2026 guidance at 3.090-3.460 EPS. As a group, sell-side analysts predict that BRP will post 3.15 EPS for the current fiscal year.

Wall Street Analysts Forecast Growth

A number of brokerages have commented on DOOO. Desjardins raised shares of BRP from a "hold" rating to a "buy" rating in a report on Friday, May 30th. Citigroup restated a "neutral" rating and issued a $51.00 price objective (up from $43.00) on shares of BRP in a research note on Monday, June 16th. TD Securities raised BRP from a "hold" rating to a "strong-buy" rating in a report on Friday, May 30th. CIBC raised BRP from a "neutral" rating to a "sector outperform" rating in a report on Tuesday. Finally, Canaccord Genuity Group upgraded BRP from a "hold" rating to a "buy" rating in a research report on Tuesday. Three equities research analysts have rated the stock with a Strong Buy rating, three have issued a Buy rating and six have assigned a Hold rating to the company. According to data from MarketBeat.com, the company currently has an average rating of "Moderate Buy" and an average target price of $43.00.

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.