BRP (TSE:DOO) Share Price Crosses Below 200-Day Moving Average - Should You Sell?

Key Points

• BRP shares fell below their 200-day moving average, trading as low as C$79.80 versus the C$85.67 average, with the stock last at C$80.10.
• Despite the technical weakness, analysts remain broadly positive, with a consensus “Moderate Buy” rating and an average price target of C$103.93.
• BRP reported C$2.24 billion in quarterly revenue and announced a C$0.25 quarterly dividend, equivalent to a 1.2% annual yield.

BRP Inc. (TSE:DOO - Get Free Report)'s share price crossed below its 200-day moving average during trading on Wednesday . The stock has a 200-day moving average of C$85.67 and traded as low as C$79.80. BRP shares last traded at C$80.10, with a volume of 159,394 shares trading hands.

Analysts Set New Price Targets

A number of brokerages have recently commented on DOO. Citigroup lifted their price target on BRP from C$106.00 to C$110.00 and gave the company a "buy" rating in a research note on Tuesday, September 8th. Canadian Imperial Bank of Commerce raised their price objective on shares of BRP from C$90.00 to C$94.00 and gave the company an "outperformer" rating in a report on Friday, May 29th. Scotiabank lifted their target price on shares of BRP from C$80.00 to C$83.00 and gave the stock a "sector perform" rating in a research report on Friday, May 29th. TD Securities upgraded shares of BRP from a "hold" rating to a "strong-buy" rating in a research report on Tuesday, August 18th. Finally, National Bank Financial raised shares of BRP from a "hold" rating to an "outperform" rating and boosted their target price for the stock from C$98.00 to C$112.00 in a report on Thursday, September 3rd. Two research analysts have rated the stock with a Strong Buy rating, nine have issued a Buy rating and five have issued a Hold rating to the company's stock. Based on data from MarketBeat, the stock has a consensus rating of "Moderate Buy" and an average target price of C$103.93.

BRP Stock Performance

The stock has a 50 day moving average of C$86.97 and a 200 day moving average of C$85.67. The company has a market capitalization of C$5.70 billion, a price-to-earnings ratio of 53.05, a price-to-earnings-growth ratio of 2.05 and a beta of 0.68. The company has a quick ratio of 0.20, a current ratio of 1.19 and a debt-to-equity ratio of 912.53.

BRP (TSE:DOO - Get Free Report) last released its earnings results on Thursday, September 3rd. The company reported C($0.18) earnings per share for the quarter. BRP had a net margin of 1.21% and a return on equity of 20.51%. The firm had revenue of C$2.24 billion for the quarter. As a group, analysts predict that BRP Inc. will post 6.890971 EPS for the current year.

BRP Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Tuesday, October 13th. Stockholders of record on Tuesday, October 13th will be paid a $0.25 dividend. This represents a $1.00 dividend on an annualized basis and a dividend yield of 1.2%. The ex-dividend date of this dividend is Tuesday, September 29th. BRP's dividend payout ratio is currently 61.59%.

BRP Company Profile

BRP Inc is a global leader in the world of powersports products and powertrains, built on over 80 years of ingenuity, innovation, and intensive consumer focus. Through its portfolio of industry-leading and distinctive brands featuring Ski-Doo and Lynx snowmobiles, Sea-Doo watercraft and pontoons, Can-Am on- and off-road vehicles, Quintrex boats as well as Rotax engines for karts, recreational aircraft and jet boats, BRP unlocks exhilarating adventures and provides access to experiences across different playgrounds.

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