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) dropped 7.2% during mid-day trading on Wednesday . The stock traded as low as $53.91 and last traded at $53.63. Approximately 1,376,402 shares were traded during trading, a decline of 21% from the average daily volume of 1,738,423 shares. The stock had previously closed at $57.81.

Wall Street Analyst Weigh In

A number of research firms recently weighed in on PII. Royal Bank Of Canada lifted their price target on Polaris from $34.00 to $56.00 and gave the company a "sector perform" rating in a research note on Wednesday. Citigroup restated a "sell" rating and set a $27.00 target price (up from $23.00) on shares of Polaris in a research report on Monday, June 16th. BMO Capital Markets restated a "market perform" rating and set a $52.00 target price (up from $33.00) on shares of Polaris in a research report on Wednesday. Truist Financial reduced their price target 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. Finally, Wall Street Zen upgraded Polaris from a "strong sell" rating to a "hold" rating in a report on Saturday. One research analyst has rated the stock with a sell rating, twelve have assigned a hold rating and one has given a buy rating to the company's stock. Based on data from MarketBeat, the stock currently has an average rating of "Hold" and an average price target of $48.33.

Polaris Stock Performance

The company has a quick ratio of 0.37, a current ratio of 1.04 and a debt-to-equity ratio of 1.17. The company has a 50 day moving average of $44.54 and a 200 day moving average of $42.65. The firm has a market cap of $2.79 billion, a price-to-earnings ratio of -26.37 and a beta of 1.04.

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

Polaris Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Monday, September 15th. Investors of record on Tuesday, September 2nd will be paid a dividend of $0.67 per share. The ex-dividend date is Tuesday, September 2nd. This represents a $2.68 annualized dividend and a yield of 5.4%. Polaris's dividend payout ratio is -142.55%.

Institutional Trading of Polaris

Several hedge funds have recently made changes to their positions in PII. UMB Bank n.a. raised its holdings in shares of 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 last quarter. Opal Wealth Advisors LLC acquired a new stake in Polaris in the 1st quarter valued at approximately $35,000. Fifth Third Bancorp raised its stake in Polaris by 46.9% during the 1st quarter. Fifth Third Bancorp now owns 996 shares of the company's stock valued at $41,000 after acquiring an additional 318 shares in the last quarter. MassMutual Private Wealth & Trust FSB raised its stake in Polaris by 191.1% during the 1st quarter. MassMutual Private Wealth & Trust FSB now owns 1,214 shares of the company's stock valued at $50,000 after acquiring an additional 797 shares in the last quarter. Finally, Allworth Financial LP boosted its position in Polaris by 7,462.5% during the 1st quarter. Allworth Financial LP now owns 1,210 shares of the company's stock worth $50,000 after acquiring an additional 1,194 shares during the period. Institutional investors own 88.06% of the company's stock.

Polaris Company Profile

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.