Argus Upgrades PACCAR (NASDAQ:PCAR) to "Buy"

Key Points

• PACCAR has been upgraded to a buy rating by Argus, with a price target of $121.00, indicating a potential upside of 19.13% from its current stock price.
• Despite Argus's upgrade, other analysts have mixed reviews, with some lowering their price targets, leading to a consensus average rating of "Moderate Buy" and a target price of $107.77.
• PACCAR's latest quarterly earnings showed $1.37 EPS, exceeding expectations but reflecting a 15.7% year-over-year revenue decline to $6.96 billion.

PACCAR (NASDAQ:PCAR - Get Free Report) was upgraded by Argus from a "hold" rating to a "buy" rating in a research report issued on Monday, Marketbeat Ratings reports. The brokerage currently has a $121.00 target price on the stock. Argus' target price indicates a potential upside of 22.61% from the company's previous close.

Other research analysts have also issued research reports about the stock. Truist Financial dropped their price target on shares of PACCAR from $102.00 to $98.00 and set a "hold" rating for the company in a research report on Wednesday, July 23rd. Morgan Stanley downgraded shares of PACCAR from an "overweight" rating to an "equal weight" rating and set a $96.00 target price on the stock. in a research note on Wednesday, April 16th. UBS Group upgraded shares of PACCAR from a "sell" rating to a "neutral" rating and boosted their target price for the company from $81.00 to $100.00 in a research note on Wednesday, July 23rd. Evercore ISI reduced their target price on shares of PACCAR from $127.00 to $115.00 and set an "outperform" rating on the stock in a research note on Monday, May 19th. Finally, Vertical Research upgraded shares of PACCAR to a "strong-buy" rating in a research note on Wednesday, July 23rd. Nine investment analysts have rated the stock with a hold rating, four have issued a buy rating and two have issued a strong buy rating to the company's stock. According to data from MarketBeat, PACCAR presently has a consensus rating of "Moderate Buy" and an average price target of $107.77.

PACCAR Stock Performance

PCAR stock traded down $0.32 on Monday, reaching $98.69. 1,229,363 shares of the company were exchanged, compared to its average volume of 2,938,205. PACCAR has a 12 month low of $84.65 and a 12 month high of $118.81. The stock's fifty day moving average price is $95.26 and its 200 day moving average price is $98.18. The firm has a market capitalization of $51.81 billion, a PE ratio of 16.90, a PEG ratio of 3.97 and a beta of 0.94. The company has a debt-to-equity ratio of 0.55, a current ratio of 1.73 and a quick ratio of 1.40.

PACCAR (NASDAQ:PCAR - Get Free Report) last posted its quarterly earnings results 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. PACCAR had a net margin of 9.88% and a return on equity of 18.25%. The firm had revenue of $6.96 billion for the quarter, compared to the consensus estimate of $7.02 billion. During the same quarter in the previous year, the company earned $2.13 earnings per share. The business's revenue was down 15.7% compared to the same quarter last year. On average, research analysts anticipate that PACCAR will post 7.57 EPS for the current fiscal year.

Insider Activity at PACCAR

In related news, CEO R Preston Feight sold 39,965 shares of the firm's stock in a transaction 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 completion of the transaction, the chief executive officer directly 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 ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, Director Pierre R. Breber bought 5,000 shares of the firm's stock in a transaction that occurred on Tuesday, May 6th. The stock was purchased at an average cost of $89.78 per share, with a total value of $448,900.00. Following the completion of the purchase, the director directly owned 13,015 shares of the company's stock, valued at $1,168,486.70. This represents a 62.38% increase in their position. The disclosure for this purchase can be found here. 2.02% of the stock is owned by insiders.

Hedge Funds Weigh In On PACCAR

Several hedge funds and other institutional investors have recently made changes to their positions in the company. E Fund Management Hong Kong Co. Ltd. grew its position in shares of PACCAR by 666.7% during the 1st quarter. E Fund Management Hong Kong Co. Ltd. now owns 276 shares of the company's stock worth $27,000 after buying an additional 240 shares during the period. Hazlett Burt & Watson Inc. lifted its position in shares of PACCAR by 53.8% during the 2nd quarter. Hazlett Burt & Watson Inc. now owns 286 shares of the company's stock valued at $28,000 after acquiring an additional 100 shares during the period. Meeder Asset Management Inc. grew its position in PACCAR by 221.8% in the 4th quarter. Meeder Asset Management Inc. now owns 280 shares of the company's stock valued at $29,000 after purchasing an additional 193 shares during the period. Alpine Bank Wealth Management acquired a new stake in PACCAR in the 1st quarter valued at $29,000. Finally, Sunbelt Securities Inc. grew its position in PACCAR by 8,750.0% in the 4th quarter. Sunbelt Securities Inc. now owns 354 shares of the company's stock valued at $37,000 after purchasing an additional 350 shares during the period. 64.90% of the stock is currently owned by institutional investors and hedge funds.

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.