BRP (TSE:DOO) Stock Price Down 35.7% - Here's Why

Key Points

• BRP shares plunged about 35.7% to roughly C$69.45 (from C$108.04) on heavy trading volume of ~670,343 shares, a ~176% increase over average volume.
• Despite the sell-off, analysts maintain a consensus Buy rating with a consensus price target of C$115.14, though individual firms have both raised and lowered targets recently.
• BRP reported Q results of C$2.21 EPS on C$2.46 billion revenue, has a market cap near C$5.0 billion, a very high debt-to-equity of 443.59, and announced a quarterly dividend that annualizes to C$1.00 (≈1.5% yield).

BRP Inc. (TSE:DOO - Get Free Report)'s stock price was down 35.7% on Wednesday . The company traded as low as C$67.85 and last traded at C$69.45. Approximately 670,343 shares changed hands during mid-day trading, an increase of 176% from the average daily volume of 242,794 shares. The stock had previously closed at C$108.04.

Wall Street Analyst Weigh In

A number of analysts recently issued reports on DOO shares. Wells Fargo & Company raised their price objective on shares of BRP from C$105.00 to C$110.00 and gave the stock an "overweight" rating in a report on Friday, March 27th. Citigroup decreased their price target on shares of BRP from C$128.00 to C$119.00 in a research note on Monday, March 30th. BMO Capital Markets lifted their price target on shares of BRP from C$115.00 to C$120.00 and gave the stock an "outperform" rating in a report on Friday, March 27th. Royal Bank Of Canada reduced their price objective on BRP from C$131.00 to C$124.00 and set an "outperform" rating for the company in a report on Monday, March 30th. Finally, Raymond James Financial decreased their target price on BRP from C$117.00 to C$115.00 in a research report on Friday, March 27th. One analyst has rated the stock with a Strong Buy rating, eleven have given a Buy rating and one has given a Hold rating to the stock. According to MarketBeat, BRP presently has a consensus rating of "Buy" and a consensus price target of C$115.14.

BRP Trading Down 36.8%

The firm's 50 day moving average is C$99.20 and its 200 day moving average is C$97.98. The company has a debt-to-equity ratio of 443.59, a current ratio of 1.27 and a quick ratio of 0.20. The company has a market cap of C$5.00 billion, a PE ratio of 17.30, a PEG ratio of 2.05 and a beta of 0.94.

BRP (TSE:DOO - Get Free Report) last released its quarterly earnings results on Thursday, March 26th. The company reported C$2.21 earnings per share for the quarter. The firm had revenue of C$2.46 billion for the quarter. BRP had a net margin of 3.45% and a return on equity of 54.95%. On average, equities analysts anticipate that BRP Inc. will post 6.890971 earnings per share for the current year.

BRP Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Friday, April 24th. Investors of record on Friday, April 24th will be given a $0.25 dividend. The ex-dividend date is Friday, April 10th. This represents a $1.00 annualized dividend and a yield of 1.5%. BRP's payout ratio is 21.77%.

About BRP

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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