Polaris (NYSE:PII) Shares Gap Up on Strong Earnings

Key Points

• Polaris Inc. (NYSE: PII) shares experienced a significant increase, opening at $56.15 after previously closing at $49.48, following a better-than-expected earnings report with an EPS of $0.40.
• The company also declared a quarterly dividend of $0.67, with an annualized yield of 4.43%, despite a high dividend payout ratio of 372.22%.
• Several analysts have issued mixed ratings on the stock, with a consensus rating of "Hold" and a price target averaging $45.58.

Polaris Inc. (NYSE:PII - Get Free Report)'s share price gapped up before the market opened on Tuesday after the company announced better than expected quarterly earnings. The stock had previously closed at $49.48, but opened at $56.15. Polaris shares last traded at $60.13, with a volume of 582,161 shares changing hands.

The company reported $0.40 EPS for the quarter, beating 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 company had revenue of $1.85 billion for the quarter, compared to the consensus estimate of $1.73 billion. During the same quarter in the previous year, the company earned $1.38 EPS. The firm's revenue for the quarter was down 5.5% compared to the same quarter last year.

Polaris Dividend Announcement

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

Analysts Set New Price Targets

Several equities research analysts have recently commented on PII shares. Truist Financial reduced their target price on shares of Polaris from $55.00 to $30.00 and set a "hold" rating on the stock in a research note on Monday, April 14th. Baird R W downgraded shares of Polaris from a "strong-buy" rating to a "hold" rating in a research report on Friday, April 4th. Robert W. Baird upped their price target on shares of Polaris from $46.00 to $55.00 and gave the stock a "neutral" rating in a research report on Wednesday. Citigroup reiterated a "sell" rating and set a $27.00 price target (up previously from $23.00) on shares of Polaris in a research report on Monday, June 16th. Finally, Royal Bank Of Canada upped their price target on shares of Polaris from $34.00 to $56.00 and gave the stock a "sector perform" rating in a research report on Wednesday. One analyst has rated the stock with a sell rating, twelve have assigned a hold rating and one has issued a buy rating to the company's stock. According to data from MarketBeat.com, the stock has an average rating of "Hold" and an average target price of $48.33.

Institutional Trading of Polaris

A number of institutional investors and hedge funds have recently modified their holdings of the stock. TD Waterhouse Canada Inc. increased its stake in shares of Polaris by 1.1% in the 4th quarter. TD Waterhouse Canada Inc. now owns 22,484 shares of the company's stock valued at $1,295,000 after acquiring an additional 241 shares during the last quarter. Koss Olinger Consulting LLC increased its stake in Polaris by 0.8% during the 2nd quarter. Koss Olinger Consulting LLC now owns 40,667 shares of the company's stock worth $1,653,000 after purchasing an additional 304 shares in the last quarter. Fifth Third Bancorp increased its stake in Polaris by 46.9% during the 1st quarter. Fifth Third Bancorp now owns 996 shares of the company's stock worth $41,000 after purchasing an additional 318 shares in the last quarter. Teacher Retirement System of Texas increased its stake in Polaris by 4.1% during the 2nd quarter. Teacher Retirement System of Texas now owns 8,064 shares of the company's stock worth $328,000 after purchasing an additional 318 shares in the last quarter. Finally, Linden Thomas Advisory Services LLC increased its stake in Polaris by 5.0% during the 1st quarter. Linden Thomas Advisory Services LLC now owns 7,984 shares of the company's stock worth $327,000 after purchasing an additional 379 shares in the last quarter. 88.06% of the stock is owned by institutional investors.

Polaris Trading Down 6.3%

The business has a 50 day moving average of $44.54 and a 200-day moving average of $42.74. The company has a current ratio of 1.04, a quick ratio of 0.37 and a debt-to-equity ratio of 1.17. The firm has a market capitalization of $2.79 billion, a P/E ratio of -26.37 and a beta of 1.05.

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.