Dimensional Fund Advisors LP Increases Position in Polaris Inc. $PII

Key Points

• Dimensional Fund Advisors increased its Polaris stake by 7.4% in the first quarter, purchasing 107,109 additional shares to own 1.55 million shares valued at approximately $84.3 million. Institutional investors collectively own 88.06% of Polaris.
• Polaris reported a strong quarter, with EPS of $1.97 beating the $0.76 consensus estimate and revenue rising 9.2% year over year to $2.02 billion. The company also declared a quarterly dividend of $0.68 per share, representing a 4.0% annualized yield.
• Despite several analysts raising price targets after the results, the overall analyst consensus remains “Hold” with an average target of $67.00. Tariff uncertainty and the company’s negative net margin remain key risks.

Dimensional Fund Advisors LP grew its holdings in shares of Polaris Inc. (NYSE:PII - Free Report) by 7.4% in the 1st quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The fund owned 1,546,260 shares of the company's stock after buying an additional 107,109 shares during the quarter. Dimensional Fund Advisors LP owned 2.72% of Polaris worth $84,269,000 as of its most recent SEC filing.

Other hedge funds have also made changes to their positions in the company. Ritholtz Wealth Management acquired a new position in shares of Polaris in the fourth quarter worth $1,172,000. Jefferies Financial Group Inc. acquired a new stake in shares of Polaris in the fourth quarter valued at $10,778,000. Strs Ohio raised its stake in shares of Polaris by 17,000.0% in the fourth quarter. Strs Ohio now owns 51,300 shares of the company's stock valued at $3,245,000 after acquiring an additional 51,000 shares in the last quarter. Comerica Bank boosted its holdings in Polaris by 173.4% in the fourth quarter. Comerica Bank now owns 41,939 shares of the company's stock valued at $2,653,000 after purchasing an additional 26,601 shares during the period. Finally, Teachers Retirement System of The State of Kentucky boosted its holdings in Polaris by 87.0% in the first quarter. Teachers Retirement System of The State of Kentucky now owns 34,937 shares of the company's stock valued at $1,905,000 after purchasing an additional 16,252 shares during the period. Institutional investors and hedge funds own 88.06% of the company's stock.

Polaris Stock Performance

Shares of PII opened at $68.25 on Friday. The company has a debt-to-equity ratio of 2.28, a quick ratio of 0.48 and a current ratio of 1.20. The stock has a market capitalization of $3.88 billion, a P/E ratio of -14.74 and a beta of 1.25. The company's fifty day moving average is $69.22 and its two-hundred day moving average is $64.21. Polaris Inc. has a 1 year low of $47.14 and a 1 year high of $77.98.

Polaris (NYSE:PII - Get Free Report) last released its earnings results on Tuesday, July 28th. The company reported $1.97 EPS for the quarter, topping the consensus estimate of $0.76 by $1.21. Polaris had a negative net margin of 3.50% and a positive return on equity of 16.77%. The company had revenue of $2.02 billion during the quarter, compared to analysts' expectations of $1.95 billion. During the same quarter last year, the business earned ($1.39) EPS. The business's revenue was up 9.2% on a year-over-year basis. Polaris has set its FY 2026 guidance at 3.000-3.100 EPS. On average, sell-side analysts predict that Polaris Inc. will post 1.66 earnings per share for the current year.

Polaris Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Tuesday, September 15th. Shareholders of record on Tuesday, September 1st will be issued a $0.68 dividend. This represents a $2.72 dividend on an annualized basis and a yield of 4.0%. The ex-dividend date of this dividend is Tuesday, September 1st. Polaris's payout ratio is currently -34.69%.

Key Stories Impacting Polaris

Here are the key news stories impacting Polaris this week:

• Positive Sentiment: Solid Q2 performance: Polaris reported second-quarter EPS of $1.97, substantially above the $0.76 consensus estimate, while revenue of $2.02 billion exceeded expectations and increased 9.2% year over year. Analysts highlighted solid powersports demand, margin expansion, and tariff refunds as key contributors. Polaris rallies after solid demand and tariff refunds boost Q2 results
• Positive Sentiment: Dividend declared: The board approved a regular quarterly cash dividend of $0.68 per share, payable September 15 to shareholders of record September 1. The payout reinforces Polaris’s shareholder-return commitment and may support investor sentiment. Polaris Declares Regular Cash Dividend
• Positive Sentiment: Higher valuation targets: Citigroup raised its target to $73 from $70, Wells Fargo to $70 from $65, RBC to $75 from $65, and Baird to $72 from $70. The revisions indicate improved expectations following the quarterly results.
• Neutral Sentiment: Analyst ratings remain cautious: The firms maintained Neutral, Equal Weight, Sector Perform, or similar ratings, suggesting that the higher targets reflect modest upside rather than a broad change to Polaris’s risk-reward outlook.
• Negative Sentiment: Tariff risks persist: Despite tariff refunds benefiting the quarter, ongoing tariff-related costs and uncertainty remain headwinds for margins and future earnings. Investors will also monitor whether demand momentum can continue after the favorable second-quarter comparisons. PII Q2 deep dive: Powersports momentum, margin expansion, and ongoing tariff headwinds

Wall Street Analyst Weigh In

A number of research analysts recently issued reports on the company. Raymond James Financial restated an "outperform" rating on shares of Polaris in a research note on Wednesday, April 29th. Wells Fargo & Company raised their target price on shares of Polaris from $65.00 to $70.00 and gave the stock an "equal weight" rating in a research report on Wednesday. Morgan Stanley cut their target price on shares of Polaris from $74.00 to $69.00 and set an "equal weight" rating on the stock in a report on Tuesday, May 19th. Weiss Ratings upgraded shares of Polaris from a "sell (d)" rating to a "sell (d+)" rating in a research report on Wednesday. Finally, Zacks Research upgraded shares of Polaris from a "hold" rating to a "strong-buy" rating in a research note on Tuesday, July 21st. One equities research analyst has rated the stock with a Strong Buy rating, one has given a Buy rating, eleven have given a Hold rating and one has assigned a Sell rating to the company's stock. According to MarketBeat.com, Polaris currently has an average rating of "Hold" and an average target price of $67.00.

About Polaris

Polaris Inc, founded in 1954 and headquartered in Medina, Minnesota, is a diversified manufacturer of powersports vehicles and related products. Initially gaining prominence with its snowmobiles, Polaris expanded its portfolio over the decades to include all-terrain vehicles (ATVs), side-by-side off-road vehicles, and motorcycles. The company's legacy in recreational and utility vehicle innovation stems from early engineering breakthroughs that established Polaris as a leading name in off-road mobility.

Today, Polaris offers a broad range of products under well-known brands such as Polaris RANGER and POLARIS SPORTSMAN for utility and recreation markets, Slingshot three-wheel roadsters for on-road enthusiasts, and the Indian Motorcycle brand for premium two-wheeled touring and cruiser segments.

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