PACCAR (PCAR) Rating Lowered to Hold at Zacks Investment Research
According to Zacks, “PACCAR’s quarterly results are backed by strong global truck markets and solid aftermarket parts’ results. In fact, the company’s class 8 truck retail sales are rising, primarily due to a robust economy and strong freight demand. Also, the company is well-positioned in its key markets, owing to strong cash flow enabling it to undertake capital investments, and research and development expenses. Over the past three months, shares of the company have outperformed the industry it belongs to. However, rising commodity price and drop in used vehicles prices are concerns. Further, PACCAR faces tough competition from its industry peers.”
Several other equities analysts have also recently issued reports on the company. ValuEngine cut PACCAR from a “hold” rating to a “sell” rating in a research note on Thursday, January 10th. BidaskClub lowered PACCAR from a “strong-buy” rating to a “buy” rating in a research note on Friday, March 1st. Vertical Research cut shares of PACCAR from a “hold” rating to a “sell” rating in a report on Monday, January 7th. JPMorgan Chase & Co. downgraded shares of PACCAR from a “neutral” rating to an “underweight” rating and set a $54.00 price objective on the stock. in a research report on Thursday, January 10th. Finally, Piper Jaffray Companies upped their price objective on shares of PACCAR to $75.00 and gave the stock an “overweight” rating in a report on Tuesday, February 5th. They noted that the move was a valuation call. Four research analysts have rated the stock with a sell rating, thirteen have given a hold rating and five have assigned a buy rating to the stock. PACCAR currently has a consensus rating of “Hold” and a consensus target price of $67.48.
PACCAR (NASDAQ:PCAR) last released its quarterly earnings results on Tuesday, January 29th. The company reported $1.65 EPS for the quarter, beating analysts’ consensus estimates of $1.57 by $0.08. PACCAR had a return on equity of 25.01% and a net margin of 9.34%. The business had revenue of $5.93 billion during the quarter, compared to analyst estimates of $5.71 billion. During the same quarter in the prior year, the company posted $1.18 EPS. PACCAR’s quarterly revenue was up 15.8% compared to the same quarter last year. As a group, analysts anticipate that PACCAR will post 6.42 EPS for the current fiscal year.
In other news, SVP Darrin C. Siver sold 8,088 shares of the company’s stock in a transaction dated Wednesday, February 20th. The shares were sold at an average price of $68.81, for a total value of $556,535.28. Following the sale, the senior vice president now directly owns 24,335 shares of the company’s stock, valued at approximately $1,674,491.35. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this link. Also, VP David J. Danforth sold 1,549 shares of the stock in a transaction dated Monday, February 4th. The stock was sold at an average price of $64.49, for a total transaction of $99,895.01. Following the completion of the transaction, the vice president now owns 6,571 shares of the company’s stock, valued at $423,763.79. The disclosure for this sale can be found here. In the last quarter, insiders sold 61,989 shares of company stock valued at $4,160,345. 2.32% of the stock is owned by corporate insiders.
A number of hedge funds and other institutional investors have recently modified their holdings of the stock. BlackRock Inc. grew its position in PACCAR by 7.8% during the 4th quarter. BlackRock Inc. now owns 25,297,074 shares of the company’s stock valued at $1,445,476,000 after purchasing an additional 1,830,638 shares during the last quarter. Oregon Public Employees Retirement Fund raised its holdings in PACCAR by 7,876.0% in the fourth quarter. Oregon Public Employees Retirement Fund now owns 7,701,443 shares of the company’s stock worth $135,000 after buying an additional 7,604,885 shares during the last quarter. Bank of New York Mellon Corp raised its holdings in PACCAR by 33.3% in the third quarter. Bank of New York Mellon Corp now owns 6,026,604 shares of the company’s stock worth $410,954,000 after buying an additional 1,505,929 shares during the last quarter. Norges Bank purchased a new position in PACCAR in the fourth quarter worth about $333,867,000. Finally, Geode Capital Management LLC lifted its stake in shares of PACCAR by 7.4% in the fourth quarter. Geode Capital Management LLC now owns 5,068,951 shares of the company’s stock worth $289,187,000 after buying an additional 350,337 shares in the last quarter. 62.49% of the stock is owned by institutional investors.
PACCAR Company Profile
PACCAR Inc designs, manufactures, and distributes light, medium, and heavy-duty commercial trucks in the United States, Europe, and internationally. The company operates in three segments: Truck, Parts, and Financial Services. The Truck segment designs, manufactures, and distributes trucks that are used for the over-the-road and off-highway hauling of commercial and consumer goods.
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