PACCAR (NASDAQ:PCAR) Shares Gap Down After Earnings Miss

PACCAR Inc (NASDAQ:PCAR)’s share price gapped down before the market opened on Tuesday after the company announced weaker than expected quarterly earnings. The stock had previously closed at $109.91, but opened at $106.16. PACCAR shares last traded at $107.55, with a volume of 300,838 shares traded.

The company reported $1.66 EPS for the quarter, missing analysts’ consensus estimates of $1.70 by ($0.04). PACCAR had a return on equity of 27.24% and a net margin of 13.51%.

PACCAR Increases Dividend

The firm also recently disclosed a dividend, which was paid on Wednesday, January 8th. Shareholders of record on Friday, December 20th were paid a dividend of $3.00 per share. This is a boost from PACCAR’s previous dividend of $0.89. The ex-dividend date of this dividend was Friday, December 20th. PACCAR’s payout ratio is presently 13.41%.

Analyst Upgrades and Downgrades

A number of equities research analysts have recently commented on PCAR shares. JPMorgan Chase & Co. raised their target price on PACCAR from $122.00 to $125.00 and gave the company an “overweight” rating in a research report on Monday, January 13th. Evercore ISI upgraded PACCAR from an “in-line” rating to an “outperform” rating and boosted their price objective for the company from $99.00 to $129.00 in a research report on Wednesday, November 13th. Jefferies Financial Group cut shares of PACCAR from a “buy” rating to a “hold” rating and set a $120.00 price objective for the company. in a research report on Friday, December 6th. Morgan Stanley cut their target price on shares of PACCAR from $135.00 to $126.00 and set an “overweight” rating for the company in a research note on Wednesday, October 23rd. Finally, Royal Bank of Canada reaffirmed a “sector perform” rating and issued a $119.00 price target on shares of PACCAR in a research note on Monday, November 4th. Seven analysts have rated the stock with a hold rating and seven have given a buy rating to the company. According to data from MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and an average target price of $121.23.

Insiders Place Their Bets

In other news, CEO R Preston Feight sold 27,191 shares of the stock in a transaction on Friday, November 1st. The shares were sold at an average price of $103.52, for a total value of $2,814,812.32. Following the completion of the transaction, the chief executive officer now owns 171,776 shares in the company, valued at approximately $17,782,251.52. This represents a 13.67 % decrease in their position. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. Company insiders own 2.02% of the company’s stock.

Institutional Trading of PACCAR

Several large investors have recently added to or reduced their stakes in PCAR. Creative Planning raised its stake in shares of PACCAR by 7.5% in the second quarter. Creative Planning now owns 72,752 shares of the company’s stock worth $7,489,000 after acquiring an additional 5,073 shares during the last quarter. Northwestern Mutual Wealth Management Co. raised its position in PACCAR by 8.8% in the 2nd quarter. Northwestern Mutual Wealth Management Co. now owns 44,808 shares of the company’s stock worth $4,613,000 after purchasing an additional 3,622 shares during the last quarter. Quarry LP acquired a new position in PACCAR during the 2nd quarter worth $26,000. Sanctuary Advisors LLC bought a new position in PACCAR in the 2nd quarter valued at $2,703,000. Finally, Heritage Wealth Management Inc. acquired a new stake in shares of PACCAR in the 2nd quarter valued at $344,000. 64.90% of the stock is owned by institutional investors.

PACCAR Trading Down 2.4 %

The company has a quick ratio of 1.03, a current ratio of 1.25 and a debt-to-equity ratio of 0.54. The company has a market cap of $56.23 billion, a P/E ratio of 11.98, a P/E/G ratio of 2.77 and a beta of 0.93. The business has a 50-day moving average price of $110.51 and a two-hundred day moving average price of $104.42.

About PACCAR

PACCAR Inc designs, manufactures, and distributes light, medium, and heavy-duty commercial trucks in the United States, Canada, Europe, Mexico, South America, Australia, and internationally. It operates through three segments: Truck, Parts, and Financial Services. The Truck segment designs, manufactures, and distributes trucks for the over-the-road and off-highway hauling of commercial and consumer goods.