BRP (NASDAQ:DOO) Shares Gap Down Following Analyst Downgrade

Key Points

• Seaport downgrade from Buy to Neutral triggered a major gap down — the stock opened at $55.07 from a $78.45 close and was last around $50.71, a decline of about 35.8%.
• BRP sharply increased its quarterly dividend to $0.25 (from $0.07), annualized $1.00 with a 2.0% yield; the ex-dividend date is April 10 and payment is April 24.
• Despite recent mixed analyst actions, the consensus remains a “Moderate Buy” with an average price target of $80.50 (analyst mix: 1 Strong Buy, 2 Buy, 4 Hold).

Shares of BRP Inc. (NASDAQ:DOO - Get Free Report) gapped down before the market opened on Wednesday after Seaport Research Partners downgraded the stock from a buy rating to a neutral rating. The stock had previously closed at $78.45, but opened at $55.07. BRP shares last traded at $50.7140, with a volume of 869,580 shares trading hands.

A number of other research analysts also recently commented on DOO. UBS Group boosted their target price on BRP from $70.00 to $75.00 and gave the company a "neutral" rating in a research note on Friday, January 9th. Wells Fargo & Company started coverage on BRP in a research note on Wednesday, March 11th. They set an "overweight" rating for the company. Weiss Ratings reiterated a "hold (c-)" rating on shares of BRP in a report on Monday, March 23rd. TD Securities cut BRP to a "hold" rating in a research note on Wednesday. Finally, Zacks Research upgraded BRP from a "hold" rating to a "strong-buy" rating in a report on Friday, March 27th. One equities research analyst has rated the stock with a Strong Buy rating, two have issued a Buy rating and four have assigned a Hold rating to the company. Based on data from MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and an average price target of $80.50.

Institutional Trading of BRP

A number of institutional investors and hedge funds have recently made changes to their positions in DOO. QV Investors Inc. bought a new stake in shares of BRP during the 4th quarter worth about $31,701,000. Signaturefd LLC bought a new stake in BRP during the fourth quarter worth approximately $43,000. Addenda Capital Inc. bought a new stake in BRP during the fourth quarter worth approximately $1,170,000. Annex Advisory Services LLC acquired a new position in BRP during the fourth quarter valued at approximately $279,000. Finally, Zurcher Kantonalbank Zurich Cantonalbank acquired a new position in BRP during the fourth quarter valued at approximately $751,000.

BRP Stock Down 35.8%

The stock has a market capitalization of $3.70 billion, a P/E ratio of 17.44 and a beta of 1.15. The company has a debt-to-equity ratio of 3.92, a quick ratio of 0.56 and a current ratio of 1.27. The firm's 50-day moving average is $72.29.

BRP Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Friday, April 24th. Investors of record on Friday, April 10th will be paid a $0.25 dividend. This represents a $1.00 dividend on an annualized basis and a yield of 2.0%. The ex-dividend date is Friday, April 10th. This is a boost from BRP's previous quarterly dividend of $0.07. BRP's dividend payout ratio (DPR) is 24.74%.

About BRP

BRP Inc, headquartered in Valcourt, Quebec, designs, manufactures and distributes powersports vehicles and propulsion systems for recreational and utility use. The company traces its roots to the Bombardier family and the early development of the snowmobile, and it operates as a global manufacturer of recreational vehicles and related technologies.

BRP’s product portfolio includes snowmobiles, personal watercraft and sport boats, off-road vehicles (including all-terrain and side-by-side models) and three‑wheel on‑road vehicles.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.