PACCAR (NASDAQ:PCAR) Shares Gap Down After Earnings Miss

PACCAR Inc (NASDAQ:PCAR) shares gapped down before the market opened on Tuesday following a weaker than expected 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 traded.

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 firm also recently announced a dividend, which was paid on Wednesday, January 8th. Shareholders of record on Friday, December 20th were paid a $3.00 dividend. This is a positive change from PACCAR’s previous dividend of $0.89. The ex-dividend date of this dividend was Friday, December 20th. PACCAR’s dividend payout ratio is currently 13.41%.

Wall Street Analysts Forecast Growth

A number of brokerages have issued reports on PCAR. Jefferies Financial Group lowered shares of PACCAR from a “buy” rating to a “hold” rating and set a $120.00 price target on the stock. in a report on Friday, December 6th. Royal Bank of Canada reaffirmed a “sector perform” rating and issued a $119.00 target price on shares of PACCAR in a report on Monday, November 4th. BNP Paribas upgraded shares of PACCAR to a “hold” rating in a research report on Wednesday, October 16th. Evercore ISI raised PACCAR from an “in-line” rating to an “outperform” rating and upped their target price for the company from $99.00 to $129.00 in a research note on Wednesday, November 13th. Finally, JPMorgan Chase & Co. boosted their price objective on shares of PACCAR from $122.00 to $125.00 and gave the stock an “overweight” rating in a research note on Monday, January 13th. Seven analysts have rated the stock with a hold rating and seven have given a buy rating to the company. According to data from MarketBeat, PACCAR currently has an average rating of “Moderate Buy” and an average target price of $121.23.

Insider Activity at PACCAR

In other news, CEO R Preston Feight sold 27,191 shares of the firm’s stock in a transaction on Friday, November 1st. The shares were sold at an average price of $103.52, for a total value of $2,814,812.32. Following the sale, the chief executive officer now directly owns 171,776 shares in the company, valued at approximately $17,782,251.52. This trade represents a 13.67 % decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. 2.02% of the stock is owned by insiders.

Institutional Investors Weigh In On PACCAR

Several large investors have recently modified their holdings of the company. Everence Capital Management Inc. acquired a new position in shares of PACCAR during the fourth quarter worth about $1,984,000. Sanctuary Advisors LLC increased its position in PACCAR by 24.3% during the 3rd quarter. Sanctuary Advisors LLC now owns 30,016 shares of the company’s stock worth $2,962,000 after purchasing an additional 5,871 shares during the period. Mengis Capital Management Inc. raised its stake in shares of PACCAR by 2.9% during the 3rd quarter. Mengis Capital Management Inc. now owns 191,157 shares of the company’s stock worth $18,863,000 after buying an additional 5,433 shares in the last quarter. Insight Wealth Strategies LLC lifted its holdings in shares of PACCAR by 21.6% in the 4th quarter. Insight Wealth Strategies LLC now owns 39,041 shares of the company’s stock valued at $4,061,000 after buying an additional 6,936 shares during the period. Finally, Fisher Asset Management LLC boosted its stake in shares of PACCAR by 1.8% in the third quarter. Fisher Asset Management LLC now owns 5,180,925 shares of the company’s stock valued at $511,254,000 after buying an additional 89,245 shares in the last quarter. 64.90% of the stock is owned by institutional investors and hedge funds.

PACCAR Price Performance

The stock has a fifty day moving average of $110.55 and a two-hundred day moving average of $104.37. The stock has a market cap of $56.17 billion, a price-to-earnings ratio of 11.99, a price-to-earnings-growth ratio of 2.77 and a beta of 0.93. The company has a quick ratio of 1.03, a current ratio of 1.25 and a debt-to-equity ratio of 0.54.

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.