Intact Investment Management Inc., a leading institutional investor, has significantly increased its stake in BRP Inc. (NASDAQ: DOOO) during the first quarter of 2023, according to the company’s recent filing with the Securities & Exchange Commission. This growth amounts to a staggering 1,952.9%, as Intact Investment Management Inc. purchased an additional 13,670 shares of BRP Inc.’s stock, bringing their total holdings to 14,370 shares. At the time of reporting, the market value of these shares amounted to $1,124,000.
BRP Inc., together with its subsidiaries, is a renowned manufacturer and distributor of powersports vehicles and marine products in various regions including North America, Europe, Australia, New Zealand, and Latin America. The company operates under two main segments – Powersports and Marine.
Under the Powersports segment, BRP Inc. offers a wide range of products throughout the year. These include Can-Am All-Terrain Vehicles (ATVs), Side-by-Side Vehicles (SSVs), and Three-Wheeler Vehicles (3WVs). Additionally, they also provide seasonal products such as Ski-Doo and Lynx snowmobiles for winter sports enthusiasts. Furthermore, their portfolio encompasses Sea-Doo Personal Watercrafts (PWCs) and pontoons for recreational water activities. They are also known for producing Rotax engines used in karts and recreational aircraft.
This significant increase in Intact Investment Management Inc.’s stake highlights their growing confidence in BRP Inc.’s potential for success in the powersports industry. Intact Investment Management Inc., as an institutional investor with substantial assets under management, follows a diligent approach towards identifying investment opportunities that align with their investment strategy.
The rise in Intact Investment Management Inc.’s stake could potentially be attributed to factors such as BRP’s strong market position and innovative product offerings within both the powersports and marine segments. The company’s commitment to research and development, as well as its consistent focus on meeting customer needs, has contributed to its sustained growth and success.
As of September 10, 2023, the current market landscape for powersports vehicles and marine products remains promising. With increasing consumer demand for outdoor recreational activities, BRP Inc. is well-positioned to capitalize on this trend. By continually introducing new and exciting products tailored to meet evolving consumer preferences, the company can maintain its competitive edge within the industry.
Investors are closely monitoring BRP Inc.’s ability to leverage its strong brand reputation and expand into new markets. Intact Investment Management Inc.’s notable increase in stake suggests that they have taken note of the company’s strategic initiatives and are confident in their future prospects.
It is important to keep in mind that investments in the stock market carry inherent risks. Investors should carefully analyze potential investments based on thorough research, risk tolerance, and investment objectives before making any decisions.
In conclusion, Intact Investment Management Inc.’s significant increase in its stake in BRP Inc. highlights their confidence in the company’s potential for growth within the powersports industry. As a leading manufacturer and distributor of powersports vehicles and marine products, BRP Inc.’s innovative product offerings and strong market position make it an attractive investment opportunity for institutional investors like Intact Investment Management Inc.
Growing Institutional Interest and Positive Analyst Outlook Fuel BRP’s Potential
BRP Inc. has recently attracted the attention of several large investors, who have made notable changes to their positions in the company. Clearstead Advisors LLC, for instance, purchased a new position in BRP during the first quarter, valued at approximately $37,000. Group One Trading L.P. also bought a stake in BRP during the same period, worth around $52,000.
Furthermore, the State of Wyoming increased its stake in BRP by an impressive 126.5% during the fourth quarter of last year. Power Corp of Canada also acquired a stake in BRP during the first quarter, valued at approximately $69,000. Additionally, Tower Research Capital LLC TRC raised its stake in BRP by an astonishing 1,429.2% during the same period.
These significant changes in ownership highlight the growing interest and confidence that institutional investors have in BRP’s potential. In fact, it is worth noting that 26.68% of the stock is owned by hedge funds and other institutional investors.
In terms of analyst reports, DOOO (BRP) has been gaining attention lately. Raymond James reduced their target price on BRP from C$139.00 to C$124.00 in early June this year. However, TD Securities increased their price objective on BRP from C$110.00 to C$115.00 around the same time.
Similarly, CIBC also raised their price objective on BRP from C$137.00 to C$138.00 in June 2023 according to research notes they published around that time period as well.DA Davidson went a step further and upgraded its rating for BRP from “neutral” to “buy,” while increasing its price objective for the stock from $111 to $126.
Royal Bank of Canada also published a research note raising their target price on BRP from C$138 to C$141.
According to data from Bloomberg, the average rating for BRP stock is “Moderate Buy,” with an average target price of $133.91.
BRP Inc., along with its subsidiaries, is engaged in the design, development, manufacturing, distribution, and marketing of powersports vehicles and marine products. With a presence in North America, Europe, Australia, New Zealand, and Latin America, the company operates through two main segments: Powersports and Marine.
The Powersports segment offers products that cater to customers throughout the year, including popular brands like Can-Am ATVs (All-Terrain Vehicles), SSVs (Side-by-Side Vehicles), and 3WVs (Three-wheel Vehicles). It also provides seasonal products such as Ski-Doo and Lynx snowmobiles, Sea-Doo Personal Watercrafts (PWCs) and pontoons. Additionally, the segment manufactures Rotax engines for karts and recreational aircraft.
Shares of BRP stock opened at $74.43 on Friday. The market capitalization of the company currently stands at $5.81 billion. BRP Inc. has a price-to-earnings ratio of 8.00 and a beta of 2.29. It boasts a debt-to-equity ratio of 4.80 along with a quick ratio of 0.39 and a current ratio of 1.34.
Moreover, BRP’s stock has shown stability over time as it has a 50-day moving average price of $82.59 and a 200-day moving average price of $79.32.
Additionally, in recent news releases from the business side of things – BRP announced its intention to distribute a quarterly dividend on Friday, October 13th.Existing shareholders on record as of Friday, September 29th are set to receive a dividend payment amounting to $0 .133 per share.
This represents an annualized dividend of $0.53 per share and a dividend yield of 0.71%. It is important to note that the ex-dividend date for this payment is Thursday, September 28th. BRP’s dividend payout ratio (DPR) currently stands at 5.70%.
In conclusion, the recent activities surrounding BRP Inc. demonstrate its growing popularity among investors and analysts alike. With strategic investments from prominent institutions and positive recommendations from renowned analyst firms, BRP is poised for continued success in the powersports and marine industry. As the company continues to innovate and expand its product offerings across various geographies, investors can look forward to promising returns in the near future.