BRP (TSE:DOO) Share Price Passes Below 200 Day Moving Average - Time to Sell?

Key Points

• BRP shares fell below their 200-day moving average, trading as low as C$84.00 and last changing hands at C$84.46, versus a 200-day average of C$91.54. The move raises a possible bearish technical signal for the stock.
• Analyst sentiment remains mixed, with recent target cuts and downgrades from firms like Scotia, Stifel Nicolaus, and Canaccord offset by buy ratings from Citi and Desjardins. MarketBeat shows an overall Moderate Buy consensus with an average price target of C$98.73.
• BRP’s latest quarterly results showed C$1.83 EPS on C$2.39 billion in revenue, while analysts expect full-year earnings of about 6.89 per share. The company also carries notable leverage, with a debt-to-equity ratio of 419.45.

BRP Inc. (TSE:DOO - Get Free Report)'s stock price crossed below its 200-day moving average during trading on Monday . The stock has a 200-day moving average of C$91.54 and traded as low as C$84.00. BRP shares last traded at C$84.46, with a volume of 156,548 shares changing hands.

Analyst Ratings Changes

DOO has been the topic of several recent analyst reports. Scotia reduced their price objective on shares of BRP from C$117.00 to C$80.00 and set a "sector perform" rating on the stock in a research note on Thursday, April 16th. Citigroup cut their price target on BRP from C$75.00 to C$74.00 and set a "buy" rating for the company in a report on Friday, May 29th. Desjardins increased their price target on BRP from C$97.00 to C$103.00 and gave the stock a "buy" rating in a research note on Monday, June 1st. Stifel Nicolaus cut BRP from a "buy" rating to a "hold" rating and decreased their price objective for the stock from C$92.00 to C$85.00 in a report on Friday, May 29th. Finally, Canaccord Genuity Group downgraded BRP from a "buy" rating to a "hold" rating and lowered their price objective for the company from C$118.00 to C$90.00 in a research report on Wednesday, April 15th. One equities research analyst has rated the stock with a Strong Buy rating, seven have given a Buy rating and eight have assigned a Hold rating to the company's stock. According to data from MarketBeat, the stock presently has an average rating of "Moderate Buy" and an average price target of C$98.73.

BRP Price Performance

The company's 50-day moving average is C$82.58 and its 200-day moving average is C$91.54. The company has a debt-to-equity ratio of 419.45, a current ratio of 1.30 and a quick ratio of 0.20. The firm has a market capitalization of C$6.23 billion, a price-to-earnings ratio of 23.08, a PEG ratio of 2.05 and a beta of 0.83.

BRP (TSE:DOO - Get Free Report) last issued its quarterly earnings results on Thursday, May 28th. The company reported C$1.83 EPS for the quarter. The firm had revenue of C$2.39 billion during the quarter. BRP had a net margin of 3.01% and a return on equity of 46.01%. On average, research analysts expect that BRP Inc. will post 6.890971 earnings per share for the current year.

BRP Company Profile

BRP designs, develops, manufactures, distributes, and markets snowmobiles, all-terrain vehicles, and personal watercraft under the Ski-Doo, Sea-Doo, Can-Am, and Lynx brand names. It also builds engines under the Rotax brand (after discontinuing the Evinrude outboard engine business in 2020) and offers clothing, parts, and accessories that cater to its core consumers. In 2018, BRP created a marine group, acquiring boat manufacturers Alumacraft, Triton (which makes Manitou pontoon boats), and Telwater (in Australia).

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