Polaris (NYSE:PII) Shares Down 7.2% - Here's Why

Key Points

• The stock price of Polaris Inc. (NYSE: PII) fell by 7.2%, trading at around $53.63 during mid-day on Wednesday, with a significant drop in trading volume.
• Polaris's latest earnings report showed an EPS of $0.40, exceeding expectations, despite a 5.5% year-over-year decrease in revenue.
• Multiple analysts have downgraded Polaris's ratings recently, with the consensus rating being a "Hold" and an average price target of $48.33.

Polaris Inc. (NYSE:PII - Get Free Report)'s stock price was down 7.2% during trading on Wednesday . The company traded as low as $53.91 and last traded at $53.63. Approximately 1,376,402 shares traded hands during trading, a decline of 21% from the average daily volume of 1,738,423 shares. The stock had previously closed at $57.81.

Analyst Ratings Changes

A number of equities research analysts recently commented on PII shares. Baird R W cut shares of Polaris from a "strong-buy" rating to a "hold" rating in a research report on Friday, April 4th. Roth Capital increased their target price on shares of Polaris from $32.00 to $41.00 and gave the company a "neutral" rating in a research report on Wednesday, July 23rd. Wall Street Zen cut shares of Polaris from a "hold" rating to a "sell" rating in a research report on Thursday, May 8th. Morgan Stanley decreased their target price on shares of Polaris from $31.00 to $29.00 and set an "equal weight" rating for the company in a research report on Thursday, May 1st. Finally, Truist Financial decreased their target price on shares of Polaris from $55.00 to $30.00 and set a "hold" rating for the company in a research report on Monday, April 14th. Two equities research analysts have rated the stock with a sell rating, eleven have given a hold rating and one has issued a buy rating to the company. According to MarketBeat.com, the stock currently has an average rating of "Hold" and an average price target of $48.33.

Polaris Trading Down 6.7%

The company has a debt-to-equity ratio of 1.17, a current ratio of 1.04 and a quick ratio of 0.37. The company's fifty day moving average is $44.31 and its 200-day moving average is $42.79. The stock has a market cap of $2.77 billion, a PE ratio of -26.25 and a beta of 1.05.

Polaris (NYSE:PII - Get Free Report) last issued its earnings results on Tuesday, July 29th. The company reported $0.40 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.05 by $0.35. Polaris had a negative net margin of 1.57% and a positive return on equity of 5.16%. The firm had revenue of $1.85 billion during the quarter, compared to analysts' expectations of $1.73 billion. During the same quarter last year, the company posted $1.38 earnings per share. The firm's revenue was down 5.5% compared to the same quarter last year. On average, analysts predict that Polaris Inc. will post 1.11 earnings per share for the current fiscal year.

Polaris Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Monday, September 15th. Investors of record on Tuesday, September 2nd will be issued a dividend of $0.67 per share. This represents a $2.68 annualized dividend and a dividend yield of 5.4%. Polaris's dividend payout ratio (DPR) is presently 372.22%.

Institutional Inflows and Outflows

Institutional investors have recently made changes to their positions in the business. UMB Bank n.a. grew its position in Polaris by 114.1% during the first quarter. UMB Bank n.a. now owns 805 shares of the company's stock valued at $33,000 after buying an additional 429 shares during the period. Opal Wealth Advisors LLC purchased a new position in Polaris during the first quarter valued at $35,000. Fifth Third Bancorp lifted its holdings in Polaris by 46.9% during the first quarter. Fifth Third Bancorp now owns 996 shares of the company's stock valued at $41,000 after purchasing an additional 318 shares in the last quarter. MassMutual Private Wealth & Trust FSB lifted its holdings in Polaris by 191.1% during the first quarter. MassMutual Private Wealth & Trust FSB now owns 1,214 shares of the company's stock valued at $50,000 after purchasing an additional 797 shares in the last quarter. Finally, Allworth Financial LP lifted its holdings in Polaris by 7,462.5% during the first quarter. Allworth Financial LP now owns 1,210 shares of the company's stock valued at $50,000 after purchasing an additional 1,194 shares in the last quarter. Hedge funds and other institutional investors own 88.06% of the company's stock.

About Polaris

Polaris Inc designs, engineers, manufactures, and markets powersports vehicles in the United States, Canada, and internationally. It operates through three segments: Off-Road, On-Road, and Marine. The company offers off-road vehicles (ORVs), including all-terrain vehicles and side-by-side vehicles; military and commercial ORVs; snowmobiles; motorcycles; and moto-roadsters, quadricycles, and boats.