Polaris (NYSE:PII) Shares Gap Down - Should You Sell?

Key Points

• Shares gapped down — Polaris opened at $49.77 after a prior close of $57.49 and was trading around $49.65 on heavy volume, reflecting a sharp intraday decline.
• Broker consensus is cautious: MarketBeat shows a consensus rating of "Reduce" with an average target of $63.11, while several firms trimmed targets and Weiss Ratings downgraded the stock to a sell.
• Operationally Polaris beat the quarter (EPS $0.08 vs $0.06 and revenue $1.92B, +9.5% y/y) and issued FY2026 guidance of $1.50–$1.60 EPS

Polaris Inc. (NYSE:PII - Get Free Report) shares gapped down prior to trading on Wednesday . The stock had previously closed at $57.49, but opened at $49.77. Polaris shares last traded at $49.6490, with a volume of 885,112 shares changing hands.

Wall Street Analyst Weigh In

A number of analysts have recently issued reports on the company. Wells Fargo & Company assumed coverage on Polaris in a report on Wednesday, March 11th. They issued an "equal weight" rating and a $52.00 target price for the company. Roth Mkm restated a "neutral" rating on shares of Polaris in a report on Wednesday, January 28th. Royal Bank Of Canada reduced their target price on Polaris to $67.00 and set a "sector perform" rating for the company in a report on Tuesday, January 27th. Morgan Stanley reduced their target price on Polaris from $81.00 to $74.00 and set an "equal weight" rating for the company in a report on Tuesday, February 17th. Finally, Weiss Ratings lowered Polaris from a "hold (c-)" rating to a "sell (d+)" rating in a report on Tuesday, February 17th. Ten analysts have rated the stock with a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat, the stock has a consensus rating of "Reduce" and an average target price of $63.11.

Polaris Trading Down 9.9%

The company has a debt-to-equity ratio of 1.81, a current ratio of 0.98 and a quick ratio of 0.35. The company has a fifty day moving average of $58.57 and a 200-day moving average of $63.61. The firm has a market capitalization of $2.94 billion, a PE ratio of -6.36 and a beta of 1.17.

Polaris (NYSE:PII - Get Free Report) last announced its quarterly earnings data on Tuesday, January 27th. The company reported $0.08 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.06 by $0.02. Polaris had a negative return on equity of 0.05% and a negative net margin of 6.51%.The business had revenue of $1.92 billion during the quarter, compared to analyst estimates of $1.82 billion. During the same period last year, the company earned $0.92 earnings per share. Polaris's quarterly revenue was up 9.5% compared to the same quarter last year. Polaris has set its FY 2026 guidance at 1.500-1.600 EPS and its Q1 2026 guidance at 0.450-0.450 EPS. On average, sell-side analysts anticipate that Polaris Inc. will post 1.11 earnings per share for the current fiscal year.

Polaris Increases Dividend

The business also recently announced a quarterly dividend, which was paid on Monday, March 16th. Shareholders of record on Monday, March 2nd were issued a dividend of $0.68 per share. This represents a $2.72 annualized dividend and a yield of 5.3%. This is an increase from Polaris's previous quarterly dividend of $0.67. The ex-dividend date was Monday, March 2nd. Polaris's dividend payout ratio is -33.25%.

Insider Buying and Selling at Polaris

In other news, SVP James P. Williams sold 5,243 shares of the firm's stock in a transaction dated Tuesday, February 3rd. The stock was sold at an average price of $67.17, for a total value of $352,172.31. Following the sale, the senior vice president directly owned 48,645 shares of the company's stock, valued at approximately $3,267,484.65. This trade represents a 9.73% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, CEO Michael T. Speetzen sold 35,086 shares of the firm's stock in a transaction dated Wednesday, February 11th. The shares were sold at an average price of $66.83, for a total value of $2,344,797.38. Following the completion of the sale, the chief executive officer directly owned 136,362 shares in the company, valued at approximately $9,113,072.46. This represents a 20.46% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold a total of 50,419 shares of company stock worth $3,371,183 over the last three months. Corporate insiders own 2.40% of the company's stock.

Institutional Investors Weigh In On Polaris

Several hedge funds and other institutional investors have recently made changes to their positions in the business. Quantbot Technologies LP grew its position in shares of Polaris by 0.4% in the third quarter. Quantbot Technologies LP now owns 47,913 shares of the company's stock valued at $2,785,000 after purchasing an additional 177 shares during the last quarter. Keybank National Association OH grew its position in shares of Polaris by 1.9% in the fourth quarter. Keybank National Association OH now owns 9,872 shares of the company's stock valued at $624,000 after purchasing an additional 184 shares during the last quarter. Rockefeller Capital Management L.P. grew its position in shares of Polaris by 1.8% in the fourth quarter. Rockefeller Capital Management L.P. now owns 10,726 shares of the company's stock valued at $678,000 after purchasing an additional 194 shares during the last quarter. Ballentine Partners LLC grew its position in shares of Polaris by 3.0% in the third quarter. Ballentine Partners LLC now owns 6,761 shares of the company's stock valued at $393,000 after purchasing an additional 196 shares during the last quarter. Finally, Linden Thomas Advisory Services LLC grew its position in shares of Polaris by 2.8% in the third quarter. Linden Thomas Advisory Services LLC now owns 8,241 shares of the company's stock valued at $479,000 after purchasing an additional 227 shares during the last quarter. 88.06% of the stock is owned by institutional investors and hedge funds.

Polaris Company Profile

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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