PACCAR (NASDAQ:PCAR) Reaches New 1-Year Low on Disappointing Earnings

PACCAR Inc (NASDAQ:PCAR)’s stock price hit a new 52-week low during mid-day trading on Tuesday after the company announced weaker than expected quarterly earnings. The stock traded as low as $84.65 and last traded at $86.39, with a volume of 836362 shares. The stock had previously closed at $92.04.

The company reported $1.46 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $1.59 by ($0.13). PACCAR had a net margin of 12.36% and a return on equity of 23.53%. During the same period in the prior year, the company earned $2.27 EPS. The company’s revenue was down 16.0% on a year-over-year basis.

PACCAR Increases Dividend

The company also recently announced a quarterly dividend, which was paid on Wednesday, March 5th. Investors of record on Wednesday, February 12th were issued a $0.33 dividend. The ex-dividend date was Wednesday, February 12th. This represents a $1.32 annualized dividend and a yield of 1.52%. This is an increase from PACCAR’s previous quarterly dividend of $0.30. PACCAR’s dividend payout ratio is currently 16.69%.

Analyst Upgrades and Downgrades

PCAR has been the topic of several research analyst reports. UBS Group downgraded PACCAR from a “neutral” rating to a “sell” rating and lowered their price objective for the company from $108.00 to $78.00 in a research report on Monday, April 7th. Evercore ISI decreased their price target on PACCAR from $129.00 to $127.00 and set an “outperform” rating for the company in a research note on Wednesday, February 19th. Melius Research set a $120.00 target price on PACCAR in a research report on Tuesday, March 18th. Melius upgraded PACCAR from a “hold” rating to a “buy” rating in a report on Tuesday, March 18th. Finally, Bank of America upgraded PACCAR from a “neutral” rating to a “buy” rating and upped their target price for the company from $116.00 to $121.50 in a report on Tuesday, January 14th. One investment analyst has rated the stock with a sell rating, seven have given a hold rating, six have given a buy rating and one has assigned a strong buy rating to the company. Based on data from MarketBeat, PACCAR presently has a consensus rating of “Hold” and an average target price of $108.59.

Insider Buying and Selling at PACCAR

In other news, VP Michael K. Walton sold 6,000 shares of the stock in a transaction that occurred on Wednesday, February 19th. The stock was sold at an average price of $106.13, for a total transaction of $636,780.00. Following the completion of the transaction, the vice president now directly owns 951 shares of the company’s stock, valued at approximately $100,929.63. This represents a 86.32 % decrease in their position. The sale was disclosed in a filing with the SEC, which is accessible through this hyperlink. Also, VP Todd R. Hubbard sold 2,000 shares of the firm’s stock in a transaction on Friday, January 31st. The shares were sold at an average price of $112.05, for a total value of $224,100.00. Following the completion of the sale, the vice president now directly owns 5,463 shares of the company’s stock, valued at approximately $612,129.15. This trade represents a 26.80 % decrease in their position. The disclosure for this sale can be found here. Insiders have sold a total of 165,547 shares of company stock worth $18,261,908 over the last ninety days. Corporate insiders own 2.02% of the company’s stock.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently added to or reduced their stakes in the stock. E Fund Management Hong Kong Co. Ltd. increased its stake in PACCAR by 666.7% in the 1st quarter. E Fund Management Hong Kong Co. Ltd. now owns 276 shares of the company’s stock valued at $27,000 after purchasing an additional 240 shares in the last quarter. Meeder Asset Management Inc. grew its stake 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 acquiring an additional 193 shares during the last quarter. Alpine Bank Wealth Management purchased a new position in PACCAR during the 1st quarter valued at about $29,000. Golden State Wealth Management LLC acquired a new position in PACCAR during the fourth quarter worth about $37,000. Finally, Sunbelt Securities Inc. grew its position in shares of PACCAR by 8,750.0% in the fourth 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 last quarter. 64.90% of the stock is currently owned by institutional investors and hedge funds.

PACCAR Stock Performance

The company has a current ratio of 2.54, a quick ratio of 1.39 and a debt-to-equity ratio of 0.56. The firm has a market capitalization of $45.46 billion, a PE ratio of 10.98, a PEG ratio of 2.77 and a beta of 0.96. The stock’s 50 day moving average price is $97.24 and its two-hundred day moving average price is $105.27.

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.