PACCAR Inc. $PCAR Position Reduced by Royal Bank of Canada

Key Points

• Royal Bank of Canada reduced its PACCAR position by 7.6% in the first quarter, selling 152,977 shares and retaining 1.87 million shares worth approximately $216.2 million.
• PACCAR reported quarterly earnings of $1.43 per share and revenue of $7.55 billion, surpassing analyst estimates of $1.36 per share and $7.05 billion, respectively. The company also declared a quarterly dividend of $0.35 per share, representing a 1.0% annualized yield.
• Analyst sentiment remains mixed: JPMorgan raised its price target to $164 and upgraded the stock to “overweight,” but the broader analyst consensus is “Hold” with an average target of $127, below PACCAR’s recent trading level.

Royal Bank of Canada trimmed its position in PACCAR Inc. (NASDAQ:PCAR - Free Report) by 7.6% in the 1st quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The firm owned 1,871,475 shares of the company's stock after selling 152,977 shares during the quarter. Royal Bank of Canada owned approximately 0.36% of PACCAR worth $216,156,000 at the end of the most recent quarter.

A number of other large investors have also made changes to their positions in the company. Ares Financial Consulting LLC purchased a new stake in shares of PACCAR in the 4th quarter valued at approximately $27,000. MCF Advisors LLC boosted its stake in PACCAR by 57.5% in the 4th quarter. MCF Advisors LLC now owns 252 shares of the company's stock worth $28,000 after purchasing an additional 92 shares during the period. Steph & Co. purchased a new position in PACCAR during the 1st quarter worth approximately $29,000. Elyxium Wealth LLC purchased a new position in PACCAR during the 4th quarter worth approximately $30,000. Finally, Wealth Watch Advisors INC acquired a new stake in PACCAR during the 3rd quarter valued at $32,000. Institutional investors and hedge funds own 64.90% of the company's stock.

PACCAR Stock Down 3.1%

PCAR stock opened at $133.87 on Thursday. The company has a 50 day moving average of $120.46 and a two-hundred day moving average of $120.68. The company has a market cap of $70.45 billion, a price-to-earnings ratio of 28.12, a PEG ratio of 1.27 and a beta of 0.97. PACCAR Inc. has a 12-month low of $92.25 and a 12-month high of $139.24. The company has a quick ratio of 2.91, a current ratio of 1.82 and a debt-to-equity ratio of 0.52.

PACCAR (NASDAQ:PCAR - Get Free Report) last posted its quarterly earnings results on Tuesday, July 28th. The company reported $1.43 EPS for the quarter, beating the consensus estimate of $1.36 by $0.07. PACCAR had a net margin of 9.00% and a return on equity of 12.73%. The business had revenue of $7.55 billion for the quarter, compared to analysts' expectations of $7.05 billion. During the same period in the previous year, the company posted $1.37 EPS. PACCAR's revenue was up .5% on a year-over-year basis. On average, equities analysts anticipate that PACCAR Inc. will post 5.66 earnings per share for the current fiscal year.

PACCAR Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Wednesday, September 2nd. Investors of record on Wednesday, August 12th will be given a dividend of $0.35 per share. The ex-dividend date of this dividend is Wednesday, August 12th. This represents a $1.40 dividend on an annualized basis and a yield of 1.0%. PACCAR's dividend payout ratio (DPR) is presently 29.79%.

Trending Headlines about PACCAR

Here are the key news stories impacting PACCAR this week:

• Positive Sentiment: JPMorgan raised its price target to $164 and upgraded PACCAR to “overweight,” implying substantial upside from recent levels and signaling increased confidence in the truck manufacturer’s earnings outlook. Benzinga
• Positive Sentiment: Second-quarter results exceeded expectations: adjusted earnings were $1.43 per share versus the $1.36 consensus estimate, while revenue reached $7.55 billion, above the $7.05 billion analyst forecast. Earnings also increased from $1.37 per share a year earlier. PACCAR Increases Quarterly Revenues and Profits
• Positive Sentiment: Management cited strong truck orders, higher production rates, improved freight conditions, better truck profitability and record parts revenue. Net income rose 24% from the preceding quarter, supporting the company’s near-term margin outlook. PACCAR Q2 Earnings Surpass Expectations on Truck Profit
• Neutral Sentiment: Analysts characterized truck demand as stable and regulatory conditions as clearer, which may support margins and guidance. However, quarterly revenue increased only about 0.5% year over year, suggesting that growth remains moderate. PCAR Q2 Deep Dive
• Negative Sentiment: PCAR’s lower trading action suggests investors may be taking profits or demanding stronger top-line growth after the earnings release. With the stock near its annual high and trading at roughly 28 times earnings, expectations may already reflect much of the favorable results.

Wall Street Analyst Weigh In

PCAR has been the subject of a number of research analyst reports. JPMorgan Chase & Co. increased their target price on PACCAR from $155.00 to $164.00 and gave the company an "overweight" rating in a report on Wednesday. Citigroup reiterated a "neutral" rating and set a $125.00 price target (down from $130.00) on shares of PACCAR in a report on Thursday, April 30th. Sanford C. Bernstein reissued an "outperform" rating and set a $148.00 price target on shares of PACCAR in a research report on Wednesday. Weiss Ratings downgraded PACCAR from a "buy (b-)" rating to a "hold (c+)" rating in a research note on Thursday, May 21st. Finally, Wells Fargo & Company set a $125.00 price objective on PACCAR and gave the stock an "equal weight" rating in a research report on Wednesday, April 29th. Three equities research analysts have rated the stock with a Buy rating and eleven have given a Hold rating to the company. Based on data from MarketBeat, the company presently has a consensus rating of "Hold" and an average target price of $127.00.

PACCAR 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.

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