BRP (NASDAQ:DOOO) Shares Gap Up Following Earnings Beat

BRP Inc. (NASDAQ:DOOO) gapped up prior to trading on Wednesday after the company announced better than expected quarterly earnings. The stock had previously closed at $35.54, but opened at $38.10. BRP shares last traded at $39.27, with a volume of 192,558 shares.

The company reported $0.69 EPS for the quarter, beating the consensus estimate of $0.62 by $0.07. BRP had a net margin of 2.29% and a return on equity of 61.20%. The firm had revenue of $1.44 billion for the quarter, compared to analyst estimates of $1.97 billion.

BRP Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Friday, April 18th. Shareholders of record on Friday, April 4th will be paid a dividend of $0.1508 per share. The ex-dividend date is Friday, April 4th. This is a boost from BRP’s previous quarterly dividend of $0.15. This represents a $0.60 annualized dividend and a yield of 1.70%. BRP’s dividend payout ratio is presently 30.85%.

Analyst Ratings Changes

Separately, Citigroup cut BRP from a “neutral” rating to a “sell” rating and lowered their price target for the stock from $48.00 to $29.00 in a report on Thursday, March 20th. One investment analyst has rated the stock with a sell rating, six have issued a hold rating and one has given a strong buy rating to the company. According to MarketBeat.com, the company currently has a consensus rating of “Hold” and an average price target of $87.80.

Institutional Trading of BRP

Hedge funds and other institutional investors have recently made changes to their positions in the company. Quadrant Capital Group LLC boosted its position in BRP by 259.3% during the 4th quarter. Quadrant Capital Group LLC now owns 679 shares of the company’s stock worth $35,000 after buying an additional 490 shares during the period. Signaturefd LLC lifted its holdings in shares of BRP by 296.1% during the fourth quarter. Signaturefd LLC now owns 1,208 shares of the company’s stock worth $61,000 after purchasing an additional 903 shares during the period. Dnca Finance grew its stake in shares of BRP by 36.1% in the fourth quarter. Dnca Finance now owns 1,390 shares of the company’s stock worth $71,000 after purchasing an additional 369 shares during the last quarter. C M Bidwell & Associates Ltd. bought a new position in BRP during the 4th quarter worth $77,000. Finally, DRW Securities LLC acquired a new stake in shares of BRP in the third quarter valued at about $161,000.

BRP Trading Down 7.2 %

The company has a debt-to-equity ratio of 5.19, a current ratio of 1.37 and a quick ratio of 0.57. The firm has a market cap of $2.59 billion, a price-to-earnings ratio of 18.86 and a beta of 2.03. The firm’s fifty day moving average is $42.90 and its 200-day moving average is $49.73.

BRP Company Profile

BRP Inc, together with its subsidiaries, designs, develops, manufactures, distributes, and markets powersports vehicles and marine products in the United States, Canada, Europe, the Asia Pacific, Mexico, Austria, and internationally. The Powersports segment offers year-round products, such as Can-Am all-terrain vehicles, side-by-side vehicles, and three-wheeled vehicles; and seasonal products, including Ski-Doo and Lynx snowmobiles, Sea-Doo personal watercrafts and pontoons, Rotax engines for karts and recreational aircraft, and Pinion gearboxes with smart shift systems.