Zacks Investment Research downgraded shares of PACCAR (NASDAQ:PCAR) from a strong-buy rating to a hold rating in a report issued on Friday morning.
According to Zacks, “PACCAR’s class 8 truck retail sales are rising primarily due to a robust economy and strong freight demand, which is expected to drive its financials. Increasing profits and positive cash flow has enabled the company to pursue an active capital deployment policy through regular dividend payments and share buyback programs. Also, it is well-positioned in its key markets on the back of its strong cash flow, enabling it to undertake capital investments and research and development expenses. However, declining used truck prices due to excess supply pose a concern for PACCAR. Also, rising commodity prices puts pressure in the company’s profit. Over the past three months, shares of the company have underperformed the industry it belongs to.”
Several other research analysts also recently weighed in on the stock. Piper Jaffray Companies raised shares of PACCAR from a neutral rating to an overweight rating and set a $67.00 target price for the company in a research note on Wednesday, October 24th. Citigroup cut their target price on shares of PACCAR from $67.00 to $62.00 and set a neutral rating for the company in a research note on Wednesday, October 24th. ValuEngine downgraded shares of PACCAR from a sell rating to a strong sell rating in a research note on Tuesday, October 23rd. Wolfe Research downgraded shares of PACCAR from a peer perform rating to an underperform rating in a research note on Friday, October 5th. Finally, BidaskClub downgraded shares of PACCAR from a buy rating to a hold rating in a research note on Friday, October 12th. Seven analysts have rated the stock with a sell rating, sixteen have given a hold rating, four have issued a buy rating and one has issued a strong buy rating to the company. The company has a consensus rating of Hold and an average target price of $68.16.
Shares of NASDAQ:PCAR traded up $0.28 during midday trading on Friday, hitting $59.44. 1,919,162 shares of the stock were exchanged, compared to its average volume of 2,571,670. The company has a market capitalization of $20.55 billion, a PE ratio of 13.95, a price-to-earnings-growth ratio of 0.87 and a beta of 1.26. The company has a quick ratio of 2.44, a current ratio of 2.63 and a debt-to-equity ratio of 0.72. PACCAR has a twelve month low of $53.43 and a twelve month high of $79.69.
PACCAR (NASDAQ:PCAR) last announced its earnings results on Tuesday, October 23rd. The company reported $1.55 earnings per share for the quarter, beating the consensus estimate of $1.51 by $0.04. PACCAR had a net margin of 9.73% and a return on equity of 23.52%. The firm had revenue of $5.42 billion during the quarter, compared to the consensus estimate of $5.50 billion. During the same quarter in the previous year, the company posted $1.14 EPS. The firm’s revenue for the quarter was up 14.5% on a year-over-year basis. As a group, equities analysts anticipate that PACCAR will post 6.16 earnings per share for the current year.
PACCAR announced that its Board of Directors has initiated a share buyback program on Tuesday, December 4th that permits the company to buyback $500.00 million in shares. This buyback authorization permits the company to buy up to 2.3% of its stock through open market purchases. Stock buyback programs are generally a sign that the company’s board believes its shares are undervalued.
The company also recently announced a dividend, which was paid on Friday, January 4th. Stockholders of record on Friday, December 14th were issued a dividend of $2.00 per share. The ex-dividend date of this dividend was Thursday, December 13th. PACCAR’s payout ratio is currently 26.29%.
In other news, VP Douglas S. Grandstaff sold 607 shares of the business’s stock in a transaction dated Tuesday, November 13th. The stock was sold at an average price of $59.67, for a total transaction of $36,219.69. Following the completion of the sale, the vice president now owns 5,284 shares in the company, valued at approximately $315,296.28. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, insider Mark C. Pigott sold 194,004 shares of the business’s stock in a transaction dated Wednesday, November 7th. The stock was sold at an average price of $58.84, for a total value of $11,415,195.36. Following the sale, the insider now owns 3,080,449 shares of the company’s stock, valued at approximately $181,253,619.16. The disclosure for this sale can be found here. Insiders have sold a total of 195,262 shares of company stock valued at $11,490,110 in the last quarter. Company insiders own 2.64% of the company’s stock.
Several large investors have recently modified their holdings of the company. Valeo Financial Advisors LLC lifted its position in PACCAR by 85.5% during the 3rd quarter. Valeo Financial Advisors LLC now owns 2,148 shares of the company’s stock worth $123,000 after acquiring an additional 990 shares in the last quarter. Amussen Hunsaker Associates LLC acquired a new position in PACCAR during the 2nd quarter worth approximately $132,000. HighPoint Advisor Group LLC acquired a new position in PACCAR during the 3rd quarter worth approximately $178,000. Boltwood Capital Management acquired a new position in PACCAR during the 3rd quarter worth approximately $204,000. Finally, Schneider Downs Wealth Management Advisors LP acquired a new position in PACCAR during the 3rd quarter worth approximately $205,000. Institutional investors and hedge funds own 60.55% of the company’s stock.
PACCAR Inc designs, manufactures, and distributes light, medium, and heavy-duty commercial trucks in the United States, Europe, and internationally. It operates in three segments: Truck, Parts, and Financial Services. The Truck segment offers trucks that are used for the over-the-road and off-highway hauling of commercial and consumer goods.
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