Polaris (NYSE:PII) Stock Jumps 6.9% - Should You Buy?

Key Points

• Polaris shares rose 6.9% to approximately $54, though trading volume was far below average.
• Analyst sentiment remains cautious: the stock has an average “Hold” rating, with a consensus price target of $65.89 after several firms lowered their targets.
• Polaris reported quarterly EPS of $1.97, well above estimates, and revenue increased 9.2% year over year. The company also pays a quarterly dividend of $0.68, representing an annualized yield of about 5.1%.

Polaris Inc. (NYSE:PII - Get Free Report) shares were up 6.9% during mid-day trading on Thursday. The company traded as high as $53.66 and last traded at $54.0320. 46,820 shares were traded during mid-day trading, a decline of 95% from the average session volume of 999,216 shares. The stock had previously closed at $50.56.

Wall Street Analyst Weigh In

PII has been the topic of a number of recent analyst reports. Robert W. Baird reduced their price objective on shares of Polaris from $72.00 to $65.00 and set a "neutral" rating on the stock in a research report on Wednesday, October 7th. Zacks Research downgraded shares of Polaris from a "strong-buy" rating to a "hold" rating in a research report on Monday, October 5th. UBS Group decreased their price objective on Polaris from $67.00 to $61.00 and set a "neutral" rating for the company in a research note on Friday, September 18th. KeyCorp reaffirmed a "sector weight" rating on shares of Polaris in a report on Wednesday, July 29th. Finally, Weiss Ratings raised shares of Polaris from a "sell (d)" rating to a "sell (d+)" rating in a report on Wednesday, July 29th. One investment analyst has rated the stock with a Buy rating, twelve have assigned a Hold rating and one has given a Sell rating to the company's stock. Based on data from MarketBeat, the stock currently has an average rating of "Hold" and an average target price of $65.89.

Polaris Trading Up 5.2%

The firm has a market cap of $3.03 billion, a PE ratio of -11.49 and a beta of 1.32. The company has a debt-to-equity ratio of 2.28, a current ratio of 1.20 and a quick ratio of 0.47. The company's 50 day moving average price is $59.51 and its 200 day moving average price is $63.39.

Polaris (NYSE:PII - Get Free Report) last issued its earnings results on Tuesday, July 28th. The company reported $1.97 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.76 by $1.21. The business had revenue of $2.02 billion during the quarter, compared to analysts' expectations of $1.95 billion. Polaris had a negative net margin of 3.50% and a positive return on equity of 16.77%. The company's revenue for the quarter was up 9.2% on a year-over-year basis. During the same quarter in the prior year, the business posted ($1.39) EPS. Polaris has set its FY 2026 guidance at 3.000-3.100 EPS. As a group, analysts forecast that Polaris Inc. will post 3.22 EPS for the current fiscal year.

Polaris Dividend Announcement

The firm also recently disclosed a quarterly dividend, which was paid on Tuesday, September 15th. Shareholders of record on Tuesday, September 1st were issued a $0.68 dividend. This represents a $2.72 dividend on an annualized basis and a yield of 5.1%. The ex-dividend date of this dividend was Tuesday, September 1st. Polaris's payout ratio is currently -58.75%.

Hedge Funds Weigh In On Polaris

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Elevation Wealth Partners LLC grew its stake in Polaris by 471.0% during the 2nd quarter. Elevation Wealth Partners LLC now owns 571 shares of the company's stock worth $39,000 after buying an additional 471 shares during the last quarter. Versant Capital Management Inc increased its stake in shares of Polaris by 128.1% during the second quarter. Versant Capital Management Inc now owns 949 shares of the company's stock valued at $65,000 after acquiring an additional 533 shares during the period. SHP Wealth Management bought a new stake in Polaris in the fourth quarter worth about $74,000. Annis Gardner Whiting Capital Advisors LLC acquired a new stake in Polaris during the 1st quarter worth about $96,000. Finally, Northwestern Mutual Wealth Management Co. purchased a new stake in shares of Polaris in the second quarter valued at $123,000. Institutional investors and hedge funds own 88.06% of the company's stock.

Polaris Company Profile

Polaris Inc is a powersports and recreational vehicles company headquartered in Medina, Minnesota. Founded in 1954, the company initially became known for its snowmobiles and has expanded into a diversified manufacturer of off-road vehicles, motorcycles, snowmobiles, and marine products.

Its product portfolio includes all-terrain vehicles and side-by-side vehicles sold under brands such as RANGER, RZR, and Sportsman. Polaris also manufactures snowmobiles under the Polaris brand, motorcycles through Indian Motorcycle and Slingshot, and boats through marine brands including Bennington, Godfrey, and Hurricane.

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