PACCAR (NASDAQ:PCAR) Stock Price Target Cut by Citigroup

Key Points

• Citigroup cut PACCAR’s price target from $140 to $115 and maintained a “neutral” rating, implying roughly 6.35% upside from the stock’s $108.13 price.
• Analyst sentiment remains cautious: PACCAR has a consensus “Hold” rating and an average price target of $131.50, despite some recent upgrades and downgrades.
• PACCAR exceeded quarterly expectations, reporting $1.43 in EPS versus a $1.36 estimate and $7.55 billion in revenue versus $7.05 billion expected; insiders subsequently sold approximately $7.6 million of shares over 90 days.

PACCAR (NASDAQ:PCAR - Get Free Report) had its target price decreased by Citigroup from $140.00 to $115.00 in a research note issued on Monday, Benzinga reports. The firm currently has a "neutral" rating on the stock. Citigroup's price objective would indicate a potential upside of 6.35% from the stock's current price.

Several other equities analysts also recently issued reports on PCAR. Evercore lifted their price objective on PACCAR from $139.00 to $162.00 and gave the company an "outperform" rating in a research report on Thursday. Jefferies Financial Group increased their target price on PACCAR from $120.00 to $140.00 and gave the stock a "hold" rating in a report on Wednesday, July 29th. BNP Paribas Exane lowered their target price on PACCAR from $136.00 to $107.00 and set a "neutral" rating for the company in a research note on Tuesday, October 6th. Wells Fargo & Company set a $122.00 price target on PACCAR and gave the company an "equal weight" rating in a report on Thursday. Finally, Weiss Ratings reiterated a "hold (c+)" rating on shares of PACCAR in a research report on Tuesday, August 18th. Six investment analysts have rated the stock with a Buy rating and eleven have issued a Hold rating to the company's stock. According to MarketBeat.com, the company presently has a consensus rating of "Hold" and an average target price of $131.50.

PACCAR Stock Performance

Shares of NASDAQ:PCAR traded up $0.09 during trading on Monday, hitting $108.13. The stock had a trading volume of 2,145,895 shares, compared to its average volume of 3,197,938. The company has a quick ratio of 2.90, a current ratio of 3.12 and a debt-to-equity ratio of 0.49. PACCAR has a 12-month low of $92.25 and a 12-month high of $139.24. The stock has a market capitalization of $56.92 billion, a price-to-earnings ratio of 22.72, a price-to-earnings-growth ratio of 1.24 and a beta of 0.98. The stock has a 50-day simple moving average of $121.95 and a two-hundred day simple moving average of $120.71.

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

Insider Activity at PACCAR

In other PACCAR news, CFO Brice J. Poplawski sold 1,970 shares of the company's stock in a transaction that occurred on Friday, July 31st. The shares were 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 represents a 58.61% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. Also, CEO R Feight sold 50,975 shares of the firm's stock in a transaction on Friday, July 31st. The shares were sold at an average price of $133.07, for a total transaction of $6,783,243.25. Following the transaction, the chief executive officer owned 268,625 shares in the company, valued at $35,745,928.75. This represents a 15.95% decrease in their position. The SEC filing for this sale provides additional information. Over the last ninety days, insiders sold 56,842 shares of company stock valued at $7,565,677. Company insiders own 1.99% of the company's stock.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently made changes to their positions in PCAR. BlackRock Inc. bought a new stake in 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 valued at $1,130,496,000. Bank of New York Mellon Corp acquired a new stake in PACCAR during the 2nd quarter valued at $453,107,000. Legal & General Group Plc bought a new position in PACCAR during the second quarter worth $335,776,000. Finally, Deutsche Bank AG bought a new position in PACCAR during the second quarter worth $239,460,000. 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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