Unusual Call Option Trade in Polaris Industries Worth $740K

On February 21, 2023 at 15:31:37 (ET) an unusually large $740.00K block of Call contracts in Polaris Industries (PII) was bought, with a strike price of $120.00 / share, expiring in 332 days (on January 19, 2024). Fintel tracks all large options trades, and the premium spent on this trade was ? sigmas above the mean, placing it in the 100.00 percentile of all recent large trades made in PII options.

Analyst Price Forecast Suggests 4.24% Downside

As of February 20, 2023, the average one-year price target for Polaris Industries is $114.24. The forecasts range from a low of $74.74 to a high of $136.50. The average price target represents a decrease of 4.24% from its latest reported closing price of $119.30.

The projected annual revenue for Polaris Industries is $8,588MM, a decrease of 0.57%. The projected annual EPS is $10.39, an increase of 37.81%.

What is the Fund Sentiment?

There are 883 funds or institutions reporting positions in Polaris Industries. This is an increase of 31 owner(s) or 3.64% in the last quarter. Average portfolio weight of all funds dedicated to PII is 0.28%, an increase of 10.38%. Total shares owned by institutions decreased in the last three months by 1.46% to 67,158K shares. The put/call ratio of PII is 1.27, indicating a bearish outlook.

What are large shareholders doing?

Capital World Investors holds 6,181K shares representing 10.66% ownership of the company. In it’s prior filing, the firm reported owning 6,080K shares, representing an increase of 1.63%. The firm increased its portfolio allocation in PII by 1.92% over the last quarter.

AGTHX – GROWTH FUND OF AMERICA holds 3,857K shares representing 6.66% ownership of the company. In it’s prior filing, the firm reported owning 3,861K shares, representing a decrease of 0.09%. The firm increased its portfolio allocation in PII by 2.05% over the last quarter.

Manufacturers Life Insurance Company, The holds 2,422K shares representing 4.18% ownership of the company. In it’s prior filing, the firm reported owning 2,227K shares, representing an increase of 8.07%. The firm decreased its portfolio allocation in PII by 99.90% over the last quarter.

Beutel, Goodman & Co holds 2,126K shares representing 3.67% ownership of the company. In it’s prior filing, the firm reported owning 2,134K shares, representing a decrease of 0.34%. The firm decreased its portfolio allocation in PII by 5.78% over the last quarter.

Boston Partners holds 2,018K shares representing 3.48% ownership of the company. In it’s prior filing, the firm reported owning 2,647K shares, representing a decrease of 31.14%. The firm decreased its portfolio allocation in PII by 99.97% over the last quarter.

Polaris Industries Declares $0.65 Dividend

On February 2, 2023 the company declared a regular quarterly dividend of $0.65 per share ($2.60 annualized). Shareholders of record as of March 1, 2023 will receive the payment on March 15, 2023. Previously, the company paid $0.64 per share.

At the current share price of $119.30 / share, the stock’s dividend yield is 2.18%. Looking back five years and taking a sample every week, the average dividend yield has been 2.48%, the lowest has been 1.74%, and the highest has been 5.94%. The standard deviation of yields is 0.56 (n=236).

The current dividend yield is 0.53 standard deviations below the historical average.

Additionally, the company’s dividend payout ratio is 0.33. The payout ratio tells us how much of a company’s income is paid out in dividends. A payout ratio of one (1.0) means 100% of the company’s income is paid in a dividend. A payout ratio greater than one means the company is dipping into savings in order to maintain its dividend – not a healthy situation. Companies with few growth prospects are expected to pay out most of their income in dividends, which typically means a payout ratio between 0.5 and 1.0. Companies with good growth prospects are expected to retain some earnings in order to invest in those growth prospects, which translates to a payout ratio of zero to 0.5.

The company’s 3-Year dividend growth rate is 0.03%, demonstrating that it has increased its dividend over time.

Polaris Background Information
(This description is provided by the company.)

As the global leader in powersports, Polaris Inc. pioneers product breakthroughs and enriching experiences and services that have invited people to discover the joy of being outdoors since our founding in 1954. With annual 2020 sales of $7.0 billion, Polaris’ high-quality product line-up includes the Polaris RANGER, RZR and GENERAL side-by-side off-road vehicles; Sportsman all-terrain off-road vehicles; Indian Motorcycle mid-size and heavyweight motorcycles; Slingshot moto-roadsters; snowmobiles; and deck, cruiser and pontoon boats, including industry-leading Bennington pontoons. Polaris enhances the riding experience with parts, garments and accessories, along with a growing aftermarket portfolio, including Transamerican Auto Parts. Polaris’ presence in adjacent markets includes military and commercial off-road vehicles, quadricycles, and electric vehicles. Proudly headquartered in Minnesota, Polaris serves more than 100 countries across the globe.

This article originally appeared on Fintel

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