BRP Inc. (NASDAQ:DOOO) Sees Significant Growth in Short Interest

BRP Inc. (NASDAQ:DOOO) was the recipient of a large growth in short interest in October. As of October 31st, there was short interest totalling 2,360,000 shares, a growth of 16.3% from the October 15th total of 2,030,000 shares. Based on an average daily volume of 129,200 shares, the short-interest ratio is currently 18.3 days. Approximately 7.5% of the shares of the company are sold short.

Analysts Set New Price Targets

DOOO has been the subject of a number of recent analyst reports. Scotiabank lowered shares of BRP from a “sector outperform” rating to a “sector perform” rating in a research report on Monday, September 9th. Cibc World Mkts cut BRP from a “strong-buy” rating to a “hold” rating in a report on Monday, September 9th. Citigroup cut their target price on BRP from $80.00 to $75.00 and set a “buy” rating for the company in a research report on Monday, September 9th. Stifel Nicolaus cut BRP from a “buy” rating to a “hold” rating in a report on Wednesday, August 21st. Finally, Desjardins cut shares of BRP from a “moderate buy” rating to a “hold” rating in a research report on Sunday, September 8th. Seven investment analysts have rated the stock with a hold rating, one has given a buy rating and one has issued a strong buy rating to the company’s stock. According to MarketBeat.com, the company has a consensus rating of “Hold” and an average target price of $97.00.

BRP Price Performance

BRP stock traded up $0.38 during mid-day trading on Friday, reaching $48.09. 91,327 shares of the company’s stock traded hands, compared to its average volume of 125,162. BRP has a 12-month low of $47.36 and a 12-month high of $75.92. The company has a market cap of $3.51 billion, a price-to-earnings ratio of 19.95 and a beta of 2.07. The stock has a 50 day moving average of $55.77 and a two-hundred day moving average of $63.09. The company has a quick ratio of 0.37, a current ratio of 1.32 and a debt-to-equity ratio of 4.99.

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

BRP Announces Dividend

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

Institutional Investors Weigh In On BRP

Several hedge funds and other institutional investors have recently made changes to their positions in the company. Geode Capital Management LLC raised its holdings in shares of BRP by 8.3% in the third quarter. Geode Capital Management LLC now owns 208,186 shares of the company’s stock worth $12,978,000 after buying an additional 15,892 shares during the period. Public Employees Retirement System of Ohio bought a new position in shares of BRP during the third quarter valued at approximately $178,000. Systematic Financial Management LP lifted its holdings in BRP by 3.0% during the third quarter. Systematic Financial Management LP now owns 192,084 shares of the company’s stock worth $11,437,000 after buying an additional 5,562 shares during the period. Hantz Financial Services Inc. boosted its position in BRP by 115.1% during the third quarter. Hantz Financial Services Inc. now owns 18,885 shares of the company’s stock valued at $1,124,000 after purchasing an additional 10,106 shares in the last quarter. Finally, De Lisle Partners LLP grew its position in shares of BRP by 10.8% in the 3rd quarter. De Lisle Partners LLP now owns 27,605 shares of the company’s stock worth $1,643,000 after buying an additional 2,697 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.