PACCAR (NASDAQ:PCAR) Shares Gap Up - Still a Buy?

Key Points

• PACCAR's shares gapped up from $95.57 to $99.92 before trading at $99.72, with over 2.2 million shares exchanged.
• Analyst upgrades have resulted in PACCAR receiving a mix of ratings, including upgrades to "buy" from Argus and "neutral" from UBS, with an average price target of $107.68.
• The company announced a quarterly dividend of $0.33 per share, with a yield of 1.3%, payable on December 3rd to shareholders of record on November 12th.

PACCAR Inc. (NASDAQ:PCAR - Get Free Report) gapped up before the market opened on Friday . The stock had previously closed at $95.57, but opened at $99.92. PACCAR shares last traded at $99.72, with a volume of 2,249,773 shares traded.

Analyst Upgrades and Downgrades

Several research firms recently weighed in on PCAR. JPMorgan Chase & Co. increased their target price on PACCAR from $95.00 to $97.00 and gave the stock a "neutral" rating in a research report on Wednesday, July 23rd. UBS Group upgraded PACCAR from a "sell" rating to a "neutral" rating and raised their price objective for the stock from $81.00 to $100.00 in a report on Wednesday, July 23rd. Wall Street Zen upgraded PACCAR from a "sell" rating to a "hold" rating in a report on Saturday, July 26th. Truist Financial cut their price objective on PACCAR from $102.00 to $98.00 and set a "hold" rating on the stock in a report on Wednesday, July 23rd. Finally, Argus upgraded PACCAR from a "hold" rating to a "buy" rating and set a $121.00 price objective on the stock in a report on Monday, July 28th. Two research analysts have rated the stock with a Strong Buy rating, four have assigned a Buy rating and eight have given a Hold rating to the company. According to data from MarketBeat, the company presently has an average rating of "Moderate Buy" and an average price target of $107.68.

PACCAR Trading Up 4.9%

The firm has a market capitalization of $52.64 billion, a PE ratio of 17.16, a P/E/G ratio of 3.89 and a beta of 0.94. The company has a debt-to-equity ratio of 0.57, a quick ratio of 2.80 and a current ratio of 3.02. The firm has a fifty day moving average of $98.95 and a 200 day moving average of $95.73.

PACCAR (NASDAQ:PCAR - Get Free Report) last announced its earnings results on Tuesday, July 22nd. The company reported $1.37 EPS for the quarter, beating the consensus estimate of $1.28 by $0.09. The business had revenue of $6.96 billion for the quarter, compared to the consensus estimate of $7.02 billion. PACCAR had a return on equity of 18.25% and a net margin of 9.88%.The company's revenue was down 15.7% on a year-over-year basis. During the same period last year, the business posted $2.13 EPS. Equities research analysts expect that PACCAR Inc. will post 7.57 EPS for the current year.

PACCAR Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Wednesday, December 3rd. Shareholders of record on Wednesday, November 12th will be paid a dividend of $0.33 per share. This represents a $1.32 dividend on an annualized basis and a yield of 1.3%. The ex-dividend date is Wednesday, November 12th. PACCAR's dividend payout ratio (DPR) is 22.60%.

Insider Buying and Selling

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

Institutional Inflows and Outflows

Several hedge funds have recently made changes to their positions in PCAR. Brighton Jones LLC grew its position in shares of PACCAR by 0.3% in the 4th quarter. Brighton Jones LLC now owns 89,001 shares of the company's stock worth $9,258,000 after acquiring an additional 290 shares in the last quarter. Sunbelt Securities Inc. grew its position in shares of PACCAR by 8,750.0% in the 4th quarter. Sunbelt Securities Inc. now owns 354 shares of the company's stock worth $37,000 after acquiring an additional 350 shares in the last quarter. 111 Capital acquired a new position in shares of PACCAR in the 4th quarter worth approximately $421,000. Chancellor Financial Group WB LP acquired a new position in shares of PACCAR in the 4th quarter worth approximately $210,000. Finally, MassMutual Private Wealth & Trust FSB grew its position in shares of PACCAR by 11.9% in the 1st quarter. MassMutual Private Wealth & Trust FSB now owns 2,016 shares of the company's stock worth $196,000 after acquiring an additional 215 shares in the last quarter. Institutional investors and hedge funds own 64.90% of the company's stock.

PACCAR Company Profile

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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