JPMorgan Chase & Co. Issues Pessimistic Forecast for PACCAR (NASDAQ:PCAR) Stock Price

Key Points

• JPMorgan cut PACCAR’s price target from $164 to $142 while maintaining an “overweight” rating, implying roughly 29.5% upside from the prior close.
• Analyst sentiment remains cautious: PACCAR has a consensus “Hold” rating and an average price target of $128.18, with targets ranging from $122 to $150 among recent firms.
• PACCAR beat quarterly expectations, reporting $1.43 in earnings per share and $7.55 billion in revenue, but company insiders sold approximately $7.6 million of stock over the past 90 days.

PACCAR (NASDAQ:PCAR - Get Free Report) had its price target cut by investment analysts at JPMorgan Chase & Co. from $164.00 to $142.00 in a note issued to investors on Thursday, Benzinga reports. The brokerage presently has an "overweight" rating on the stock. JPMorgan Chase & Co.'s price objective suggests a potential upside of 29.49% from the company's previous close.

Other equities analysts have also recently issued research reports about the company. Wells Fargo & Company set a $122.00 target price on PACCAR and gave the stock an "equal weight" rating in a report on Thursday. Citigroup increased their price target on PACCAR from $125.00 to $140.00 and gave the company a "neutral" rating in a report on Thursday, July 30th. Sanford C. Bernstein restated an "outperform" rating and issued a $148.00 price target on shares of PACCAR in a research report on Wednesday, July 29th. Royal Bank Of Canada raised shares of PACCAR from a "sector perform" rating to an "outperform" rating and lifted their price objective for the stock from $130.00 to $150.00 in a research note on Thursday, September 10th. Finally, Weiss Ratings reiterated a "hold (c+)" rating on shares of PACCAR in a research report on Tuesday, August 18th. Three equities research analysts have rated the stock with a Buy rating and eleven have given a Hold rating to the company's stock. Based on data from MarketBeat.com, PACCAR presently has a consensus rating of "Hold" and an average target price of $128.18.

PACCAR Price Performance

Shares of NASDAQ PCAR traded up $2.80 during mid-day trading on Thursday, hitting $109.66. 3,769,382 shares of the company's stock traded hands, compared to its average volume of 3,203,057. The company has a debt-to-equity ratio of 0.49, a current ratio of 3.12 and a quick ratio of 2.90. PACCAR has a 1 year low of $92.25 and a 1 year high of $139.24. The company's 50-day moving average is $122.93 and its two-hundred day moving average is $120.76. The company has a market capitalization of $57.72 billion, a P/E ratio of 23.04, a PEG ratio of 1.25 and a beta of 0.98.

PACCAR (NASDAQ:PCAR - Get Free Report) last released its quarterly earnings results on Tuesday, July 28th. The company reported $1.43 EPS for the quarter, topping the consensus estimate of $1.36 by $0.07. PACCAR had a return on equity of 12.73% and a net margin of 9.00%.The company had revenue of $7.55 billion during the quarter, compared to analyst estimates of $7.05 billion. During the same quarter last year, the business posted $1.37 earnings per share. The firm's revenue was up .5% on a year-over-year basis. On average, equities analysts anticipate that PACCAR will post 5.91 EPS for the current fiscal year.

Insiders Place Their Bets

In other news, CEO R Feight sold 50,975 shares of the firm's stock in a transaction on Friday, July 31st. The stock was sold at an average price of $133.07, for a total value of $6,783,243.25. Following the completion of the sale, the chief executive officer owned 268,625 shares of the company's stock, valued at $35,745,928.75. This trade represents a 15.95% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. Also, CFO Brice J. Poplawski sold 1,970 shares of the business's stock in a transaction on Friday, July 31st. The stock was sold at an average price of $132.50, for a total value of $261,025.00. Following the transaction, the chief financial officer owned 1,391 shares in the company, valued at approximately $184,307.50. This trade represents a 58.61% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last 90 days, insiders have sold 56,842 shares of company stock worth $7,565,677. 1.99% of the stock is currently owned by company insiders.

Institutional Trading of PACCAR

Large investors have recently bought and sold shares of the stock. BlackRock Inc. acquired a new stake in shares of PACCAR during the second quarter worth $4,927,720,000. Bank of America Corp DE acquired a new stake in PACCAR during the 2nd quarter worth about $1,130,496,000. Bank of New York Mellon Corp purchased a new stake in PACCAR during the 2nd quarter valued at about $453,107,000. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC raised its stake in shares of PACCAR by 9.8% in the second quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 3,424,315 shares of the company's stock worth $411,329,000 after purchasing an additional 305,215 shares during the last quarter. Finally, Amundi raised its stake in shares of PACCAR by 108.7% in the second quarter. Amundi now owns 3,197,359 shares of the company's stock worth $384,066,000 after purchasing an additional 1,665,545 shares during the last quarter. Hedge funds and other institutional investors own 64.90% of the company's stock.

About PACCAR

PACCAR Inc is a global manufacturer of heavy-duty trucks and related transportation products. The company designs, develops and markets trucks under the Kenworth, Peterbilt and DAF brands, serving the long-haul, construction, vocational and distribution markets.

In addition to complete trucks, PACCAR provides diesel and electric powertrains, engines, parts and related aftermarket services. Its PACCAR Parts business distributes replacement parts and accessories through a network of distribution centers and dealerships, while PACCAR Financial offers retail and wholesale financing and leasing services to customers and dealers.

Founded in 1905, PACCAR has grown from a regional equipment manufacturer into an international transportation company.

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