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

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

Institutional Trading of BRP

A number of hedge funds have recently added to or reduced their stakes in DOOO. Geode Capital Management LLC increased its holdings in BRP by 8.3% in the third quarter. Geode Capital Management LLC now owns 208,186 shares of the company’s stock valued at $12,978,000 after buying an additional 15,892 shares in the last quarter. Public Employees Retirement System of Ohio acquired a new stake in shares of BRP during the 3rd quarter valued at about $178,000. Systematic Financial Management LP increased its stake in shares of BRP by 3.0% in the 3rd quarter. Systematic Financial Management LP now owns 192,084 shares of the company’s stock valued at $11,437,000 after purchasing an additional 5,562 shares in the last quarter. Hantz Financial Services Inc. increased its stake in shares of BRP by 115.1% in the 3rd 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 raised its holdings in 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 purchasing an additional 2,697 shares during the period.

BRP Stock Performance

Shares of BRP stock traded up $0.38 during trading on Friday, hitting $48.09. 91,327 shares of the company’s stock were exchanged, compared to its average volume of 125,162. BRP has a 52-week low of $47.36 and a 52-week high of $75.92. The company has a debt-to-equity ratio of 4.99, a quick ratio of 0.37 and a current ratio of 1.32. The stock has a market capitalization of $3.51 billion, a price-to-earnings ratio of 19.95 and a beta of 2.07. The business has a 50-day simple moving average of $55.77 and a 200-day simple moving average of $63.09.

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

BRP Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Friday, October 11th. Stockholders of record on Friday, September 27th were issued a dividend of $0.152 per share. This represents a $0.61 annualized dividend and a dividend yield of 1.26%. The ex-dividend date of this dividend was Friday, September 27th. BRP’s dividend payout ratio (DPR) is 25.73%.

Analyst Upgrades and Downgrades

A number of equities research analysts have commented on DOOO shares. National Bank Financial cut BRP from an “outperform” rating to a “sector perform” rating in a research note on Wednesday, August 21st. Desjardins cut shares of BRP from a “moderate buy” rating to a “hold” rating in a research note on Sunday, September 8th. Stifel Nicolaus lowered shares of BRP from a “buy” rating to a “hold” rating in a research note on Wednesday, August 21st. Cibc World Mkts downgraded shares of BRP from a “strong-buy” rating to a “hold” rating in a research note on Monday, September 9th. Finally, Citigroup cut their target price on BRP from $80.00 to $75.00 and set a “buy” rating on the stock in a research report on Monday, September 9th. Seven investment 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. According to MarketBeat, the stock has an average rating of “Hold” and an average target price of $97.00.

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.