BRP (NASDAQ:DOOO) Reaches New 12-Month Low – Should You Sell?

BRP Inc. (NASDAQ:DOOO) reached a new 52-week low on Wednesday . The stock traded as low as $47.18 and last traded at $47.56, with a volume of 18801 shares changing hands. The stock had previously closed at $48.65.

Analysts Set New Price Targets

Several equities analysts have weighed in on the company. UBS Group dropped their target price on BRP from $66.00 to $65.00 and set a “neutral” rating for the company in a research report on Friday, September 13th. Scotiabank downgraded BRP from a “sector outperform” rating to a “sector perform” rating in a research report on Monday, September 9th. Desjardins downgraded BRP from a “moderate buy” rating to a “hold” rating in a research report on Sunday, September 8th. Cibc World Mkts downgraded BRP from a “strong-buy” rating to a “hold” rating in a research report on Monday, September 9th. Finally, Citigroup lowered their price objective on BRP from $80.00 to $75.00 and set a “buy” rating for the company in a research report on Monday, September 9th. Seven analysts have rated the stock with a hold rating, one has given a buy rating and one has assigned a strong buy rating to the company’s stock. According to MarketBeat.com, the company presently has an average rating of “Hold” and an average target price of $97.00.

BRP Price Performance

The stock has a fifty day moving average of $55.11 and a 200-day moving average of $62.64. The company has a quick ratio of 0.37, a current ratio of 1.32 and a debt-to-equity ratio of 4.99. The stock has a market capitalization of $3.53 billion, a price-to-earnings ratio of 20.04 and a beta of 2.07.

BRP (NASDAQ:DOOO) last announced its quarterly earnings results on Friday, September 6th. The company reported $0.45 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.22 by $0.23. The firm had revenue of $1.34 billion during the quarter, compared to the consensus estimate of $1.35 billion. BRP had a return on equity of 79.58% and a net margin of 2.78%. On average, equities research analysts predict that BRP Inc. will post 2.3 EPS for the current fiscal year.

BRP Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Friday, October 11th. Shareholders of record on Friday, September 27th were paid a $0.152 dividend. This represents a $0.61 dividend on an annualized basis and a yield of 1.26%. The ex-dividend date was Friday, September 27th. BRP’s dividend payout ratio is currently 25.73%.

Institutional Investors Weigh In On BRP

A number of institutional investors and hedge funds have recently added to or reduced their stakes in DOOO. Russell Investments Group Ltd. lifted its stake in BRP by 77.7% in the first quarter. Russell Investments Group Ltd. now owns 12,870 shares of the company’s stock valued at $865,000 after buying an additional 5,627 shares during the last quarter. UniSuper Management Pty Ltd lifted its stake in BRP by 66.7% in the first quarter. UniSuper Management Pty Ltd now owns 500 shares of the company’s stock valued at $34,000 after buying an additional 200 shares during the last quarter. Toronto Dominion Bank raised its stake in shares of BRP by 7.2% during the first quarter. Toronto Dominion Bank now owns 27,793 shares of the company’s stock worth $1,865,000 after purchasing an additional 1,876 shares during the last quarter. 1832 Asset Management L.P. raised its stake in shares of BRP by 23.9% during the first quarter. 1832 Asset Management L.P. now owns 122,549 shares of the company’s stock worth $8,223,000 after purchasing an additional 23,678 shares during the last quarter. Finally, Bank of Nova Scotia Trust Co. raised its stake in shares of BRP by 14.6% during the first quarter. Bank of Nova Scotia Trust Co. now owns 13,108 shares of the company’s stock worth $880,000 after purchasing an additional 1,667 shares during the last quarter.

About BRP

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.