BRP (NASDAQ:DOOO) Shares Gap Down - What's Next?

Key Points

• BRP Inc. shares gapped down upon opening at $65.84 after closing at $68.36, with the last trade at $64.98 and a trading volume of 73,007 shares.
• Recent analyst upgrades have seen BRP's rating improve from "hold" to "buy" by several firms, with an average target price of $71.50 and recent targets as high as $105.00.
• The company declared a quarterly dividend of $0.215 to be paid on October 14th, marking an increase from the previous dividend of $0.16.

Shares of BRP Inc. (NASDAQ:DOOO - Get Free Report) gapped down prior to trading on Tuesday . The stock had previously closed at $68.36, but opened at $65.84. BRP shares last traded at $64.98, with a volume of 73,007 shares trading hands.

Wall Street Analysts Forecast Growth

A number of research firms have recently issued reports on DOOO. Zacks Research upgraded BRP from a "hold" rating to a "strong-buy" rating in a research note on Tuesday, September 2nd. BMO Capital Markets reiterated an "outperform" rating on shares of BRP in a research note on Tuesday, September 2nd. Stifel Canada upgraded BRP from a "hold" rating to a "strong-buy" rating in a research note on Thursday, May 29th. National Bankshares set a $105.00 price objective on BRP and gave the company a "sector perform" rating in a research note on Tuesday, September 2nd. Finally, Citigroup raised their price objective on BRP from $51.00 to $68.00 and gave the company a "neutral" rating in a research note on Wednesday, September 3rd. Four research analysts have rated the stock with a Strong Buy rating, six have assigned a Buy rating and six have assigned a Hold rating to the stock. According to data from MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and an average price target of $71.50.

BRP Stock Down 1.3%

The firm has a market cap of $4.70 billion, a price-to-earnings ratio of -267.92 and a beta of 1.19. The company has a current ratio of 1.34, a quick ratio of 0.55 and a debt-to-equity ratio of 5.54. The stock has a 50-day moving average of $55.27 and a 200-day moving average of $45.01.

BRP (NASDAQ:DOOO - Get Free Report) last released its quarterly earnings data on Friday, August 29th. The company reported $0.67 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.33 by $0.34. BRP had a positive return on equity of 61.26% and a negative net margin of 0.34%.The business had revenue of $1.36 billion during the quarter, compared to analyst estimates of $1.77 billion. BRP has set its FY 2026 guidance at 3.090-3.460 EPS. As a group, sell-side analysts forecast that BRP Inc. will post 3.15 EPS for the current fiscal year.

BRP Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Tuesday, October 14th. Shareholders of record on Tuesday, September 30th will be paid a dividend of $0.215 per share. This represents a $0.86 annualized dividend and a yield of 1.3%. The ex-dividend date of this dividend is Tuesday, September 30th. This is an increase from BRP's previous quarterly dividend of $0.16. BRP's dividend payout ratio (DPR) is presently -258.33%.

Institutional Trading of BRP

Several hedge funds have recently added to or reduced their stakes in the business. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC raised its stake in BRP by 0.8% during the 4th quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 35,827 shares of the company's stock valued at $1,823,000 after acquiring an additional 293 shares in the last quarter. Osaic Holdings Inc. raised its stake in BRP by 905.8% during the 2nd quarter. Osaic Holdings Inc. now owns 694 shares of the company's stock valued at $34,000 after acquiring an additional 625 shares in the last quarter. Sagard Holdings Management Inc. bought a new stake in shares of BRP in the 2nd quarter worth $41,000. Geode Capital Management LLC raised its stake in shares of BRP by 1.9% in the 2nd quarter. Geode Capital Management LLC now owns 50,692 shares of the company's stock worth $2,463,000 after buying an additional 955 shares in the last quarter. Finally, Raymond James Financial Inc. bought a new stake in shares of BRP in the 2nd quarter worth $60,000.

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.