BRP (NASDAQ:DOOO) Shares Gap Up Following Dividend Announcement

Key Points

• BRP Inc. shares gapped up from $57.49 to $62.42 following the announcement of a new quarterly dividend of $0.215, an increase from the previous $0.16.
• Wall Street analysts have responded positively, with several upgrades; TD Securities and Stifel Canada upgraded BRP to a "strong-buy" rating.
• The company's financials show a market capitalization of $4.48 billion and a negative profit margin, indicating challenges despite positive stock performance.

BRP Inc. (NASDAQ:DOOO - Get Free Report) shares gapped up before the market opened on Friday after the company announced a dividend. The stock had previously closed at $57.49, but opened at $62.42. BRP shares last traded at $62.48, with a volume of 143,848 shares trading hands. The newly announced dividend which will be paid on Tuesday, October 14th. Stockholders of record on Tuesday, September 30th will be paid a $0.215 dividend. This represents a $0.86 dividend on an annualized basis and a dividend yield of 1.4%. This is an increase from BRP's previous quarterly dividend of $0.16. BRP's payout ratio is -153.66%.

Wall Street Analyst Weigh In

DOOO has been the topic of a number of research analyst reports. TD Securities raised shares of BRP from a "hold" rating to a "strong-buy" rating in a research note on Friday, May 30th. Citigroup reissued a "neutral" rating and issued a $51.00 price target (up from $43.00) on shares of BRP in a research note on Monday, June 16th. Wall Street Zen upgraded shares of BRP from a "hold" rating to a "buy" rating in a report on Sunday, July 6th. Stifel Canada upgraded shares of BRP from a "hold" rating to a "strong-buy" rating in a report on Thursday, May 29th. Finally, Desjardins upgraded shares of BRP from a "hold" rating to a "buy" rating in a report on Friday, May 30th. Three analysts have rated the stock with a Strong Buy rating, one has issued a Buy rating and six have assigned a Hold rating to the stock. According to MarketBeat, the stock currently has an average rating of "Moderate Buy" and an average target price of $43.00.

BRP Trading Up 6.7%

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 business's 50-day moving average price is $51.81 and its 200-day moving average price is $43.24. The firm has a market capitalization of $4.48 billion, a PE ratio of -149.79 and a beta of 1.24.

BRP (NASDAQ:DOOO - Get Free Report) last issued its quarterly earnings results on Thursday, May 29th. The company reported $0.33 earnings per share for the quarter, topping the consensus estimate of $0.29 by $0.04. BRP had a positive return on equity of 54.71% and a negative net margin of 0.55%.The firm had revenue of $1.34 billion during the quarter, compared to the consensus estimate of $1.78 billion. As a group, analysts expect that BRP Inc. will post 3.15 earnings per share for the current fiscal year.

Institutional Inflows and Outflows

Several large investors have recently bought and sold shares of DOOO. Raymond James Financial Inc. acquired a new stake in BRP in the fourth quarter valued at $916,000. Dimensional Fund Advisors LP increased its stake in BRP by 16.4% in the fourth quarter. Dimensional Fund Advisors LP now owns 171,554 shares of the company's stock valued at $8,727,000 after purchasing an additional 24,171 shares during the last quarter. Ontario Teachers Pension Plan Board increased its stake in BRP by 31.2% in the first quarter. Ontario Teachers Pension Plan Board now owns 64,941 shares of the company's stock valued at $2,193,000 after purchasing an additional 15,447 shares during the last quarter. Fiera Capital Corp grew its position in BRP by 5.5% during the first quarter. Fiera Capital Corp now owns 135,330 shares of the company's stock valued at $4,574,000 after acquiring an additional 7,082 shares during the period. Finally, Turtle Creek Asset Management Inc. lifted its stake in shares of BRP by 29.0% during the fourth quarter. Turtle Creek Asset Management Inc. now owns 2,970,680 shares of the company's stock worth $151,118,000 after purchasing an additional 668,607 shares in the last quarter.

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.

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