PACCAR Inc. (NASDAQ:PCAR) Given Average Recommendation of "Moderate Buy" by Brokerages

Key Points

• PACCAR Inc. has received an average rating of "Moderate Buy" from analysts, with varied recommendations including eight holds, four buys, and two strong buys.
• The company recently reported $1.37 earnings per share for the quarter, exceeding analysts' expectations, although revenue fell 15.7% year-over-year to $6.96 billion.
• PACCAR announced a quarterly dividend of $0.33 per share, with an annualized dividend yield of 1.3%, and a payout ratio of 22.60%.

Shares of PACCAR Inc. (NASDAQ:PCAR - Get Free Report) have been given an average rating of "Moderate Buy" by the fourteen analysts that are covering the stock, Marketbeat Ratings reports. Eight equities research analysts have rated the stock with a hold recommendation, four have assigned a buy recommendation and two have issued a strong buy recommendation on the company. The average 1 year price objective among brokers that have issued ratings on the stock in the last year is $107.7727.

A number of equities analysts have weighed in on the company. Truist Financial lowered their price objective on PACCAR from $102.00 to $98.00 and set a "hold" rating on the stock in a research note on Wednesday, July 23rd. Morgan Stanley lowered PACCAR from an "overweight" rating to an "equal weight" rating and set a $96.00 price objective on the stock. in a research note on Wednesday, April 16th. JPMorgan Chase & Co. boosted their price objective on PACCAR from $95.00 to $97.00 and gave the stock a "neutral" rating in a research note on Wednesday, July 23rd. Royal Bank Of Canada lowered their price objective on PACCAR from $106.00 to $97.00 and set a "sector perform" rating on the stock in a research note on Thursday, May 8th. Finally, Argus upgraded PACCAR from a "hold" rating to a "buy" rating and set a $121.00 price target for the company in a report on Monday, July 28th.

Insider Activity

In related news, CEO R Preston Feight sold 39,965 shares of the stock in a transaction dated Tuesday, July 29th. The stock was sold at an average price of $99.52, for a total transaction of $3,977,316.80. Following the transaction, the chief executive officer owned 223,190 shares of the company's stock, valued at approximately $22,211,868.80. This represents a 15.19% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, CFO Brice J. Poplawski sold 5,000 shares of the stock in a transaction dated Friday, July 25th. The stock was sold at an average price of $100.94, for a total value of $504,700.00. Following the transaction, the chief financial officer directly owned 468 shares in the company, valued at approximately $47,239.92. The trade was a 91.44% decrease in their position. The disclosure for this sale can be found here. 2.02% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On PACCAR

Hedge funds have recently bought and sold shares of the company. E Fund Management Hong Kong Co. Ltd. raised its position in PACCAR by 666.7% in the 1st quarter. E Fund Management Hong Kong Co. Ltd. now owns 276 shares of the company's stock valued at $27,000 after purchasing an additional 240 shares in the last quarter. Hazlett Burt & Watson Inc. increased its stake in shares of PACCAR by 53.8% during the second quarter. Hazlett Burt & Watson Inc. now owns 286 shares of the company's stock worth $28,000 after buying an additional 100 shares during the period. Alpine Bank Wealth Management purchased a new stake in shares of PACCAR during the first quarter worth approximately $29,000. Sunbelt Securities Inc. increased its stake in shares of PACCAR by 8,750.0% during the fourth quarter. Sunbelt Securities Inc. now owns 354 shares of the company's stock worth $37,000 after buying an additional 350 shares during the period. Finally, Bayforest Capital Ltd increased its stake in shares of PACCAR by 234.2% during the first quarter. Bayforest Capital Ltd now owns 391 shares of the company's stock worth $38,000 after buying an additional 274 shares during the period. Institutional investors and hedge funds own 64.90% of the company's stock.

PACCAR Stock Up 1.7%

Shares of PCAR opened at $100.66 on Thursday. The company has a debt-to-equity ratio of 0.57, a quick ratio of 2.80 and a current ratio of 3.02. PACCAR has a one year low of $84.65 and a one year high of $118.81. The stock has a market capitalization of $52.86 billion, a price-to-earnings ratio of 17.24, a PEG ratio of 3.97 and a beta of 0.91. The stock has a 50 day moving average price of $96.10 and a 200 day moving average price of $97.35.

PACCAR (NASDAQ:PCAR - Get Free Report) last released its quarterly earnings data on Tuesday, July 22nd. The company reported $1.37 earnings per share for the quarter, topping analysts' consensus estimates of $1.28 by $0.09. The company had revenue of $6.96 billion for the quarter, compared to analyst estimates of $7.02 billion. PACCAR had a return on equity of 18.25% and a net margin of 9.88%. The firm's revenue for the quarter was down 15.7% compared to the same quarter last year. During the same quarter in the previous year, the company posted $2.13 earnings per share. Equities research analysts forecast that PACCAR will post 7.57 earnings per share for the current fiscal year.

PACCAR Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Thursday, September 4th. Investors of record on Thursday, August 14th will be paid a dividend of $0.33 per share. The ex-dividend date of this dividend is Thursday, August 14th. This represents a $1.32 annualized dividend and a yield of 1.3%. PACCAR's dividend payout ratio is presently 22.60%.

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.

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