PACCAR Inc. (NASDAQ:PCAR) Receives Average Rating of "Hold" from Analysts

Key Points

• Analysts rate PACCAR “Hold” on average: Eleven of 14 brokerages recommend holding the stock, while three recommend buying it; the average 12-month price target is $127.
• Quarterly results exceeded expectations: PACCAR reported adjusted EPS of $1.43 versus the $1.36 consensus and revenue of $7.55 billion versus $7.05 billion expected, with earnings up from $1.37 a year earlier.
• The company declared a quarterly dividend of $0.35 per share, equivalent to $1.40 annually and a 1.0% yield. JPMorgan meanwhile raised its price target to $164 and upgraded the stock to “overweight,” contrasting with the broader cautious analyst consensus.

PACCAR Inc. (NASDAQ:PCAR - Get Free Report) has been assigned a consensus recommendation of "Hold" from the fourteen brokerages that are covering the stock, MarketBeat.com reports. Eleven investment analysts have rated the stock with a hold rating and three have issued a buy rating on the company. The average 1-year price objective among brokers that have covered the stock in the last year is $127.00.

A number of research analysts have recently commented on PCAR shares. Evercore set a $139.00 target price on PACCAR in a research report on Monday, May 11th. Weiss Ratings cut shares of PACCAR from a "buy (b-)" rating to a "hold (c+)" rating in a research report on Thursday, May 21st. Citigroup reaffirmed a "neutral" rating and set a $125.00 price target (down from $130.00) on shares of PACCAR in a research note on Thursday, April 30th. Truist Financial increased their price objective on shares of PACCAR from $126.00 to $131.00 and gave the company a "hold" rating in a research report on Thursday, July 2nd. Finally, JPMorgan Chase & Co. lifted their price objective on shares of PACCAR from $155.00 to $164.00 and gave the stock an "overweight" rating in a research note on Wednesday.

PACCAR Price Performance

Shares of PACCAR stock opened at $133.87 on Thursday. The stock has a 50 day moving average of $120.46 and a 200 day moving average of $120.68. PACCAR has a 12 month low of $92.25 and a 12 month high of $139.24. The firm has a market cap of $70.45 billion, a PE ratio of 28.12, a PEG ratio of 1.27 and a beta of 0.97. The company has a current ratio of 1.82, a quick ratio of 2.91 and a debt-to-equity ratio of 0.52.

PACCAR (NASDAQ:PCAR - Get Free Report) last released its quarterly earnings results on Tuesday, July 28th. The company reported $1.43 earnings per share for the quarter, beating 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 business had revenue of $7.55 billion during the quarter, compared to analysts' expectations of $7.05 billion. During the same quarter last year, the business posted $1.37 EPS. The firm's revenue for the quarter was up .5% compared to the same quarter last year. On average, research analysts expect that PACCAR will post 5.66 EPS for the current fiscal year.

PACCAR Announces Dividend

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

Institutional Investors Weigh In On PACCAR

Large investors have recently added to or reduced their stakes in the stock. Ares Financial Consulting LLC bought a new stake in shares of PACCAR in the 4th quarter valued at approximately $27,000. Steph & Co. purchased a new position in shares of PACCAR in the 1st quarter worth approximately $29,000. MCF Advisors LLC increased its position in shares of PACCAR by 57.5% during the 4th quarter. MCF Advisors LLC now owns 252 shares of the company's stock valued at $28,000 after purchasing an additional 92 shares during the last quarter. Elyxium Wealth LLC bought a new position in shares of PACCAR during the 4th quarter valued at approximately $30,000. Finally, Camelot Portfolios LLC purchased a new stake in PACCAR during the 4th quarter valued at $33,000. 64.90% of the stock is owned by institutional investors.

PACCAR News Roundup

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.

About PACCAR

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.