Stock Traders Buy Large Volume of PACCAR Put Options (NASDAQ:PCAR)

Key Points

• Unusual bearish options activity: Traders purchased 7,102 PACCAR put options, more than 1,000% above the average daily volume of 630.
• PACCAR shares traded near $122.63, while the company’s latest quarterly results exceeded expectations with $1.43 in EPS and $7.55 billion in revenue. It also pays a quarterly dividend of $0.35 per share, yielding about 1.1%.
• Analysts maintain a consensus “Hold” rating with an average price target of $133.91; insider selling has totaled roughly $7.6 million over the past 90 days.

PACCAR Inc. (NASDAQ:PCAR - Get Free Report) was the recipient of some unusual options trading on Tuesday. Stock traders bought 7,102 put options on the stock. This represents an increase of 1,027% compared to the average daily volume of 630 put options.

PACCAR Stock Performance

Shares of PCAR traded down $0.23 during trading hours on Tuesday, reaching $122.63. 614,498 shares of the company's stock traded hands, compared to its average volume of 3,096,662. The firm has a market capitalization of $64.55 billion, a price-to-earnings ratio of 25.75, a P/E/G ratio of 1.41 and a beta of 0.96. The business's fifty day simple moving average is $128.01 and its two-hundred day simple moving average is $121.62. PACCAR has a twelve month low of $92.25 and a twelve month high of $139.24. 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 (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 analysts' consensus estimates of $1.36 by $0.07. PACCAR had a net margin of 9.00% and a return on equity of 12.73%. The company had revenue of $7.55 billion for the quarter, compared to the consensus estimate of $7.05 billion. During the same period in the previous year, the firm earned $1.37 EPS. PACCAR's revenue was up .5% on a year-over-year basis. Analysts predict that PACCAR will post 5.91 earnings per share for the current year.

PACCAR Dividend Announcement

The company also recently declared a quarterly dividend, which was paid on Wednesday, September 2nd. Stockholders of record on Wednesday, August 12th were given a dividend of $0.35 per share. The ex-dividend date was Wednesday, August 12th. This represents a $1.40 annualized dividend and a dividend yield of 1.1%. PACCAR's dividend payout ratio (DPR) is 29.41%.

Analyst Ratings Changes

Several research analysts recently commented on the company. Morgan Stanley set a $125.00 price target on PACCAR and gave the stock an "equal weight" rating in a research note on Friday, September 4th. Truist Financial lifted their price target on PACCAR from $126.00 to $131.00 and gave the stock a "hold" rating in a research note on Thursday, July 2nd. Citigroup increased their target price on PACCAR from $125.00 to $140.00 and gave the stock a "neutral" rating in a report on Thursday, July 30th. Sanford C. Bernstein reissued an "outperform" rating and issued a $148.00 target price on shares of PACCAR in a report on Wednesday, July 29th. Finally, Wells Fargo & Company increased their price target on PACCAR from $125.00 to $157.00 and gave the stock an "equal weight" rating in a research report on Thursday, July 30th. Three research analysts have rated the stock with a Buy rating and eleven have assigned a Hold rating to the company. Based on data from MarketBeat, PACCAR has an average rating of "Hold" and a consensus target price of $133.91.

Insiders Place Their Bets

In related news, VP William Lance Walters sold 1,000 shares of the stock in a transaction dated Friday, July 31st. The stock was sold at an average price of $133.50, for a total transaction of $133,500.00. The transaction was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, CFO Brice J. Poplawski sold 1,970 shares of the firm's stock in a transaction dated Friday, July 31st. The stock was sold at an average price of $132.50, for a total value of $261,025.00. Following the completion of the sale, the chief financial officer directly owned 1,391 shares in the company, valued at approximately $184,307.50. The trade was a 58.61% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last ninety days, insiders have sold 56,842 shares of company stock valued at $7,565,677. 1.99% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Several large investors have recently bought and sold shares of PCAR. BlackRock Inc. bought a new position in shares of PACCAR during the 2nd quarter valued at $4,927,720,000. Geode Capital Management LLC raised its holdings in PACCAR by 0.4% during the fourth quarter. Geode Capital Management LLC now owns 12,308,610 shares of the company's stock valued at $1,350,867,000 after buying an additional 50,622 shares in the last quarter. Bank of America Corp DE acquired a new stake in shares of PACCAR in the second quarter worth about $1,130,496,000. Norges Bank bought a new stake in shares of PACCAR during the 4th quarter worth about $727,745,000. Finally, Capital Research Global Investors increased its holdings in shares of PACCAR by 0.8% during the 4th quarter. Capital Research Global Investors now owns 6,016,243 shares of the company's stock valued at $658,839,000 after acquiring an additional 45,090 shares during the last quarter. Institutional investors own 64.90% of the company's stock.

About PACCAR

PACCAR Inc is a global manufacturer of heavy-duty, medium-duty and light-duty trucks. Through its Kenworth, Peterbilt and DAF brands, the company serves the over-the-road, vocational and construction markets, offering vehicles designed for freight transportation and other commercial applications.

In addition to truck manufacturing, PACCAR operates PACCAR Parts, which distributes replacement parts and related services through a global network. The company also provides truck financing and leasing through PACCAR Financial, supporting customers and dealers in several major markets.

PACCAR traces its history to 1905 and has grown from a regional equipment manufacturer into an international transportation company.

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