PACCAR (NASDAQ:PCAR) Reaches New 1-Year High – Should You Buy?

Shares of PACCAR Inc. (NASDAQ:PCAR) hit a new 52-week high on Tuesday . The company traded as high as $119.21 and last traded at $118.6440, with a volume of 823433 shares traded. The stock had previously closed at $112.92.

Wall Street Analyst Weigh In

Several research firms have recently issued reports on PCAR. Truist Financial upped their price objective on PACCAR from $97.00 to $108.00 and gave the company a “hold” rating in a research note on Wednesday, October 22nd. Wells Fargo & Company initiated coverage on shares of PACCAR in a research report on Thursday, November 13th. They set a “positive” rating and a $106.00 price objective for the company. Citigroup restated a “neutral” rating and issued a $115.00 target price (up from $105.00) on shares of PACCAR in a research note on Thursday, December 11th. Raymond James Financial reiterated a “market perform” rating on shares of PACCAR in a report on Tuesday, October 21st. Finally, Wolfe Research upgraded PACCAR from an “underperform” rating to a “peer perform” rating in a report on Wednesday, October 22nd. Two equities research analysts have rated the stock with a Strong Buy rating, seven have issued a Buy rating and ten have assigned a Hold rating to the company. According to data from MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and an average price target of $111.04.

PACCAR Trading Up 3.9%

The company has a debt-to-equity ratio of 0.56, a current ratio of 3.12 and a quick ratio of 2.91. The stock has a market cap of $61.61 billion, a P/E ratio of 23.00, a PEG ratio of 13.88 and a beta of 1.01. The firm’s fifty day moving average price is $105.28 and its two-hundred day moving average price is $100.52.

PACCAR (NASDAQ:PCAR) last posted its quarterly earnings data on Tuesday, October 21st. The company reported $1.12 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $1.14 by ($0.02). The company had revenue of $7.24 billion for the quarter, compared to the consensus estimate of $6.23 billion. PACCAR had a return on equity of 16.01% and a net margin of 9.11%.The business’s revenue was down 20.7% on a year-over-year basis. During the same period in the prior year, the firm posted $1.85 earnings per share. As a group, equities research analysts forecast that PACCAR Inc. will post 7.57 EPS for the current year.

PACCAR Cuts Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Wednesday, March 4th. Shareholders of record on Wednesday, February 11th will be given a dividend of $0.33 per share. This represents a $1.32 dividend on an annualized basis and a yield of 1.1%. The ex-dividend date of this dividend is Wednesday, February 11th. PACCAR’s payout ratio is presently 25.83%.

Insider Activity

In related news, CFO Brice J. Poplawski sold 3,369 shares of the company’s stock in a transaction on Monday, October 27th. The stock was sold at an average price of $101.15, for a total value of $340,774.35. Following the sale, the chief financial officer directly owned 468 shares of the company’s stock, valued at $47,338.20. This represents a 87.80% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Corporate insiders own 2.02% of the company’s stock.

Institutional Inflows and Outflows

Hedge funds have recently bought and sold shares of the company. JT Stratford LLC acquired a new stake in PACCAR in the second quarter valued at $1,301,000. Connor Clark & Lunn Investment Management Ltd. lifted its stake in PACCAR by 77.1% during the second quarter. Connor Clark & Lunn Investment Management Ltd. now owns 238,074 shares of the company’s stock worth $22,631,000 after purchasing an additional 103,664 shares during the last quarter. Assenagon Asset Management S.A. increased its stake in PACCAR by 46.0% in the second quarter. Assenagon Asset Management S.A. now owns 280,895 shares of the company’s stock valued at $26,702,000 after purchasing an additional 88,551 shares during the last quarter. Endeavor Private Wealth Inc. purchased a new position in PACCAR in the third quarter valued at approximately $3,817,000. Finally, Coppell Advisory Solutions LLC boosted its holdings in shares of PACCAR by 1,314.8% in the 1st quarter. Coppell Advisory Solutions LLC now owns 13,200 shares of the company’s stock valued at $1,285,000 after buying an additional 12,267 shares in the last quarter. Institutional investors own 64.90% of the company’s stock.

PACCAR Company Profile

PACCAR Inc is a global technology leader in the design, manufacture and customer support of light-, medium- and heavy-duty commercial vehicles. The company’s products are marketed under well-known brand names including Kenworth, Peterbilt and DAF and span vocational and long-haul applications. PACCAR’s core business includes vehicle engineering and assembly as well as the supply of components and proprietary powertrain systems designed to meet regulatory and customer performance requirements.

In addition to truck manufacturing, PACCAR operates a comprehensive aftermarket parts business, distributes used trucks and provides commercial vehicle financing and leasing through its financial services operations.