Polaris (NYSE:PII) Shares Gap Up Following Better-Than-Expected 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 prior to trading on Tuesday following a stronger than expected earnings report. 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 traded.

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 business had revenue of $1.85 billion for the quarter, compared to analysts' expectations of $1.73 billion. During the same period in the prior year, the firm earned $1.38 earnings per share. Polaris's revenue was down 5.5% compared to the same quarter last year.

Polaris Dividend Announcement

The business also recently declared a quarterly dividend, which was paid on Monday, June 16th. Stockholders of record on Monday, June 2nd were paid a $0.67 dividend. This represents a $2.68 dividend on an annualized basis and a dividend yield of 5.05%. The ex-dividend date of this dividend was Monday, June 2nd. Polaris's dividend payout ratio (DPR) is currently 372.22%.

Analysts Set New Price Targets

A number of brokerages have recently commented on PII. Citigroup restated a "sell" rating and issued a $27.00 price target (up from $23.00) on shares of Polaris in a report on Monday, June 16th. Roth Capital boosted their target price on Polaris from $32.00 to $41.00 and gave the company a "neutral" rating in a research note on Wednesday, July 23rd. Baird R W cut shares of Polaris from a "strong-buy" rating to a "hold" rating in a research note on Friday, April 4th. Robert W. Baird lifted their price objective on shares of Polaris from $46.00 to $55.00 and gave the company a "neutral" rating in a report on Wednesday. Finally, Truist Financial reduced their target price on shares of Polaris from $55.00 to $30.00 and set a "hold" rating for the company in a report on Monday, April 14th. Two equities research analysts have rated the stock with a sell rating, eleven have assigned a hold rating and one has assigned a buy rating to the company's stock. According to MarketBeat.com, the company presently has a consensus rating of "Hold" and an average price target of $48.33.

Institutional Investors Weigh In On Polaris

A number of hedge funds have recently added to or reduced their stakes in the business. RWWM Inc. boosted its holdings in Polaris by 169.2% in the first quarter. RWWM Inc. now owns 2,395,049 shares of the company's stock worth $98,053,000 after acquiring an additional 1,505,351 shares in the last quarter. Select Equity Group L.P. increased its holdings in Polaris by 142.1% during the first quarter. Select Equity Group L.P. now owns 1,620,565 shares of the company's stock worth $66,346,000 after buying an additional 951,195 shares during the last quarter. Invesco Ltd. raised its stake in shares of Polaris by 352.5% in the first quarter. Invesco Ltd. now owns 902,751 shares of the company's stock valued at $36,959,000 after buying an additional 703,240 shares during the period. Jacobs Levy Equity Management Inc. grew its stake in Polaris by 12,099.2% in the 1st quarter. Jacobs Levy Equity Management Inc. now owns 513,343 shares of the company's stock valued at $21,016,000 after buying an additional 509,135 shares in the last quarter. Finally, Goldman Sachs Group Inc. grew its holdings in Polaris by 677.2% during the 1st quarter. Goldman Sachs Group Inc. now owns 544,295 shares of the company's stock valued at $22,283,000 after buying an additional 474,259 shares in the last quarter. 88.06% of the stock is currently owned by institutional investors.

Polaris Stock Performance

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 stock has a market capitalization of $2.98 billion, a P/E ratio of -28.23 and a beta of 1.05. The company's fifty day simple moving average is $44.04 and its 200 day simple moving average is $42.80.

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.