BRP Inc. (NASDAQ:DOOO) to Issue Dividend Increase - $0.16 Per Share

BRP Inc. (NASDAQ:DOOO - Get Free Report) declared a quarterly dividend on Friday, May 30th, Wall Street Journal reports. Shareholders of record on Monday, June 30th will be paid a dividend of 0.1557 per share on Monday, July 14th. This represents a $0.62 annualized dividend and a yield of 1.41%. The ex-dividend date is Monday, June 30th. This is a 3.2% increase from BRP's previous quarterly dividend of $0.15.

BRP has raised its dividend payment by an average of 17.5% per year over the last three years and has raised its dividend annually for the last 2 consecutive years. BRP has a dividend payout ratio of 17.6% meaning its dividend is sufficiently covered by earnings. Research analysts expect BRP to earn $3.43 per share next year, which means the company should continue to be able to cover its $0.62 annual dividend with an expected future payout ratio of 18.1%.

BRP Stock Up 9.1%

Shares of NASDAQ DOOO traded up $3.71 during mid-day trading on Friday, hitting $44.26. The company had a trading volume of 600,260 shares, compared to its average volume of 164,874. The company has a market capitalization of $3.23 billion, a PE ratio of 23.54 and a beta of 1.17. The business's 50-day simple moving average is $35.51 and its 200 day simple moving average is $42.85. BRP has a 1-year low of $31.78 and a 1-year high of $74.00. The company has a debt-to-equity ratio of 5.19, a current ratio of 1.37 and a quick ratio of 0.57.

BRP (NASDAQ:DOOO - Get Free Report) last posted its quarterly earnings results on Thursday, May 29th. 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 company had revenue of $1.34 billion during the quarter, compared to analysts' expectations of $1.78 billion. On average, analysts predict that BRP will post 3.15 earnings per share for the current year.

Analyst Ratings Changes

DOOO has been the topic of a number of research analyst reports. UBS Group cut their price objective on shares of BRP from $45.00 to $35.00 and set a "neutral" rating on the stock in a report on Wednesday, April 23rd. Robert W. Baird reaffirmed a "neutral" rating and set a $43.00 price objective (down previously from $48.00) on shares of BRP in a report on Friday, April 4th. Stifel Canada upgraded BRP from a "hold" rating to a "strong-buy" rating in a research report on Thursday. TD Securities raised shares of BRP from a "hold" rating to a "strong-buy" rating in a research report on Friday. Finally, Desjardins raised shares of BRP from a "hold" rating to a "buy" rating in a report on Friday. Eight investment analysts have rated the stock with a hold rating, two have issued a buy rating and three have issued a strong buy rating to the company's stock. According to MarketBeat, BRP has a consensus rating of "Moderate Buy" and an average target price of $53.75.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently made changes to their positions in the company. Goldman Sachs Group Inc. lifted its position in BRP by 144.4% in the first quarter. Goldman Sachs Group Inc. now owns 723,443 shares of the company's stock valued at $24,460,000 after purchasing an additional 427,434 shares during the period. Jane Street Group LLC lifted its holdings in shares of BRP by 110.9% in the 1st quarter. Jane Street Group LLC now owns 138,051 shares of the company's stock valued at $4,663,000 after buying an additional 72,581 shares during the period. Jones Financial Companies Lllp boosted its stake in shares of BRP by 28,660.0% in the first quarter. Jones Financial Companies Lllp now owns 21,570 shares of the company's stock valued at $729,000 after buying an additional 21,495 shares in the last quarter. Dynamic Technology Lab Private Ltd acquired a new position in BRP during the first quarter worth $207,000. Finally, Acadian Asset Management LLC purchased a new position in BRP in the first quarter worth $70,000.

BRP Company Profile

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.