PACCAR (PCAR) Lowered to “Hold” at Zacks Investment Research
Zacks Investment Research cut shares of PACCAR (NASDAQ:PCAR) from a strong-buy rating to a hold rating in a research note issued to investors on Tuesday morning.
According to Zacks, “PACCAR’s class 8 truck retail sales are rising primarily due to a robust economy and strong freight demand, which is expected to drive its financials in 2018. Increasing profits and positive cash flow has enabled the company to pursue an active capital deployment policy. It pays regular quarterly dividends to its shareholders. In July, the company's board has approved the buyback of an additional $300 million worth of shares. Also, it is well-positioned in its key markets on the back of its strong cash flow, enabling it to undertake capital investments and research and development expenses. Over the last three months, shares of PACCAR have outperformed the industry it belongs to. However, rise in commodity prices and tough competition in the commercial truck market are concerns for the company.”
A number of other equities research analysts have also commented on PCAR. BidaskClub raised PACCAR from a strong sell rating to a sell rating in a research report on Thursday, June 28th. BMO Capital Markets lowered PACCAR from an outperform rating to a market perform rating and set a $80.00 price target on the stock. in a research report on Wednesday, July 18th. ValuEngine raised PACCAR from a strong sell rating to a sell rating in a research report on Saturday, July 14th. Goldman Sachs Group lowered PACCAR from a buy rating to a neutral rating and dropped their price target for the stock from $79.69 to $60.36 in a research report on Wednesday, May 30th. Finally, Robert W. Baird lowered PACCAR from a neutral rating to an underperform rating in a research report on Monday, July 2nd. Three research analysts have rated the stock with a sell rating, eighteen have issued a hold rating and five have assigned a buy rating to the company. The company currently has an average rating of Hold and an average target price of $71.64.
PACCAR (NASDAQ:PCAR) last released its earnings results on Tuesday, July 24th. The company reported $1.59 earnings per share for the quarter, beating the consensus estimate of $1.43 by $0.16. PACCAR had a return on equity of 22.68% and a net margin of 9.39%. The firm had revenue of $5.47 billion for the quarter, compared to analyst estimates of $5.39 billion. During the same quarter in the prior year, the firm posted $1.06 earnings per share. The company’s quarterly revenue was up 24.3% on a year-over-year basis. research analysts anticipate that PACCAR will post 6.03 EPS for the current year.
The business also recently declared a quarterly dividend, which will be paid on Tuesday, December 4th. Shareholders of record on Tuesday, November 13th will be paid a $0.28 dividend. The ex-dividend date of this dividend is Friday, November 9th. This represents a $1.12 dividend on an annualized basis and a yield of 1.62%. PACCAR’s dividend payout ratio is 26.29%.
PACCAR declared that its board has authorized a share buyback plan on Monday, July 9th that authorizes the company to repurchase $300.00 million in shares. This repurchase authorization authorizes the company to purchase up to 1.4% of its stock through open market purchases. Stock repurchase plans are typically an indication that the company’s leadership believes its shares are undervalued.
In other news, VP David J. Danforth sold 3,304 shares of PACCAR stock in a transaction that occurred on Friday, July 27th. The stock was sold at an average price of $65.57, for a total transaction of $216,643.28. Following the completion of the transaction, the vice president now directly owns 7,878 shares in the company, valued at approximately $516,560.46. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, insider Darrin C. Siver sold 5,750 shares of PACCAR stock in a transaction that occurred on Friday, August 3rd. The stock was sold at an average price of $64.46, for a total value of $370,645.00. Following the transaction, the insider now owns 22,596 shares of the company’s stock, valued at $1,456,538.16. The disclosure for this sale can be found here. Over the last 90 days, insiders sold 9,634 shares of company stock valued at $625,510. Corporate insiders own 2.64% of the company’s stock.
Hedge funds and other institutional investors have recently modified their holdings of the company. Vigilant Capital Management LLC bought a new position in shares of PACCAR during the 2nd quarter worth approximately $105,000. Migdal Insurance & Financial Holdings Ltd. boosted its stake in shares of PACCAR by 5,888.2% during the 2nd quarter. Migdal Insurance & Financial Holdings Ltd. now owns 2,036 shares of the company’s stock worth $126,000 after acquiring an additional 2,002 shares during the period. Amussen Hunsaker Associates LLC bought a new position in shares of PACCAR during the 2nd quarter worth approximately $132,000. Point72 Asia Hong Kong Ltd boosted its stake in shares of PACCAR by 1,202.7% during the 1st quarter. Point72 Asia Hong Kong Ltd now owns 2,423 shares of the company’s stock worth $160,000 after acquiring an additional 2,237 shares during the period. Finally, CWM Advisors LLC bought a new position in shares of PACCAR during the 2nd quarter worth approximately $203,000. Institutional investors own 61.03% 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, Europe, and internationally. It operates in three segments: Truck, Parts, and Financial Services. The Truck segment offers trucks that are used for the over-the-road and off-highway hauling of commercial and consumer goods.
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