PACCAR (NASDAQ:PCAR) Shares Gap Down Following Weak Earnings

PACCAR Inc (NASDAQ:PCAR)’s share price gapped down prior to trading on Tuesday following a dissappointing earnings announcement. The stock had previously closed at $109.91, but opened at $106.16. PACCAR shares last traded at $107.55, with a volume of 300,838 shares changing hands.

The company reported $1.66 earnings per share for the quarter, missing the consensus estimate of $1.70 by ($0.04). PACCAR had a return on equity of 27.24% and a net margin of 13.51%.

PACCAR Increases Dividend

The business also recently announced a dividend, which was paid on Wednesday, January 8th. Stockholders of record on Friday, December 20th were given a $3.00 dividend. The ex-dividend date was Friday, December 20th. This is an increase from PACCAR’s previous dividend of $0.89. PACCAR’s payout ratio is presently 13.41%.

Analysts Set New Price Targets

A number of research analysts have commented on PCAR shares. Bank of America raised PACCAR from a “neutral” rating to a “buy” rating and increased their target price for the stock from $116.00 to $121.50 in a report on Tuesday, January 14th. Truist Financial lifted their price objective on shares of PACCAR from $110.00 to $112.00 and gave the stock a “hold” rating in a report on Thursday, January 16th. Royal Bank of Canada reissued a “sector perform” rating and set a $119.00 target price on shares of PACCAR in a report on Monday, November 4th. Jefferies Financial Group downgraded shares of PACCAR from a “buy” rating to a “hold” rating and set a $120.00 price target on the stock. in a research report on Friday, December 6th. Finally, Evercore ISI raised PACCAR from an “in-line” rating to an “outperform” rating and raised their price target for the stock from $99.00 to $129.00 in a report on Wednesday, November 13th. Seven equities research analysts have rated the stock with a hold rating and seven have given a buy rating to the company’s stock. According to data from MarketBeat.com, the company has an average rating of “Moderate Buy” and a consensus target price of $121.23.

Insider Activity

In other PACCAR news, CEO R Preston Feight sold 27,191 shares of the stock in a transaction on Friday, November 1st. The shares were sold at an average price of $103.52, for a total transaction of $2,814,812.32. Following the transaction, the chief executive officer now directly owns 171,776 shares of the company’s stock, valued at $17,782,251.52. This represents a 13.67 % decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through the SEC website. 2.02% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On PACCAR

Large investors have recently added to or reduced their stakes in the stock. Public Sector Pension Investment Board grew its stake in shares of PACCAR by 73.2% in the second quarter. Public Sector Pension Investment Board now owns 20,150 shares of the company’s stock worth $2,074,000 after acquiring an additional 8,517 shares during the last quarter. The Manufacturers Life Insurance Company lifted its holdings in shares of PACCAR by 2.9% during the second quarter. The Manufacturers Life Insurance Company now owns 361,267 shares of the company’s stock valued at $37,189,000 after acquiring an additional 10,155 shares during the period. Creative Planning grew its holdings in shares of PACCAR by 7.5% in the 2nd quarter. Creative Planning now owns 72,752 shares of the company’s stock worth $7,489,000 after purchasing an additional 5,073 shares during the last quarter. Northwestern Mutual Wealth Management Co. increased its holdings in shares of PACCAR by 8.8% during the second quarter. Northwestern Mutual Wealth Management Co. now owns 44,808 shares of the company’s stock worth $4,613,000 after buying an additional 3,622 shares in the last quarter. Finally, Quarry LP bought a new position in shares of PACCAR in the second quarter valued at approximately $26,000. Institutional investors own 64.90% of the company’s stock.

PACCAR Stock Performance

The stock has a 50-day moving average of $110.55 and a 200 day moving average of $104.37. The company has a debt-to-equity ratio of 0.54, a quick ratio of 1.03 and a current ratio of 1.25. The firm has a market capitalization of $56.17 billion, a P/E ratio of 11.99, a price-to-earnings-growth ratio of 2.77 and a beta of 0.93.

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.