PACCAR (NASDAQ:PCAR) was downgraded by Zacks Investment Research from a “strong-buy” rating to a “hold” rating in a research report issued on Tuesday.
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.”
Several other equities analysts have also issued reports on PCAR. BidaskClub lowered PACCAR from a “hold” rating to a “sell” rating in a research note on Tuesday, May 29th. Goldman Sachs Group lowered PACCAR from a “buy” rating to a “neutral” rating and lowered their price target for the company from $79.69 to $60.36 in a research note on Wednesday, May 30th. Macquarie upgraded PACCAR from a “neutral” rating to an “outperform” rating and set a $75.00 price target on the stock in a research note on Tuesday, June 5th. ValuEngine lowered PACCAR from a “hold” rating to a “sell” rating in a research note on Wednesday, June 20th. Finally, Mizuho initiated coverage on PACCAR in a research note on Friday, June 29th. They set a “neutral” rating and a $70.00 price target on the stock. Three analysts have rated the stock with a sell rating, eighteen have given a hold rating and five have given a buy rating to the company’s stock. The company currently has an average rating of “Hold” and an average price target of $71.64.
PACCAR (NASDAQ:PCAR) last issued its quarterly earnings results on Tuesday, July 24th. The company reported $1.59 earnings per share (EPS) 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 period in the previous year, the company posted $1.06 earnings per share. The company’s quarterly revenue was up 24.3% compared to the same quarter last year. analysts anticipate that PACCAR will post 6.03 EPS for the current fiscal year.
PACCAR announced that its board has authorized a share repurchase plan on Monday, July 9th that authorizes the company to buyback $300.00 million in outstanding shares. This buyback authorization authorizes the company to purchase up to 1.4% of its shares through open market purchases. Shares buyback plans are typically a sign that the company’s management believes its shares are undervalued.
In other PACCAR news, 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 transaction of $370,645.00. Following the sale, the insider now directly owns 22,596 shares of the company’s stock, valued at $1,456,538.16. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, VP David J. Danforth sold 3,304 shares of PACCAR stock in a transaction that occurred on Friday, July 27th. The shares were sold at an average price of $65.57, for a total value of $216,643.28. Following the sale, the vice president now directly owns 7,878 shares in the company, valued at $516,560.46. The disclosure for this sale can be found here. Insiders have sold 9,634 shares of company stock worth $625,510 over the last ninety days. Company insiders own 2.64% of the company’s stock.
Several institutional investors and hedge funds have recently made changes to their positions in the company. Garde Capital Inc. boosted its holdings in shares of PACCAR by 6.0% in the 2nd quarter. Garde Capital Inc. now owns 13,275 shares of the company’s stock worth $823,000 after acquiring an additional 750 shares in the last quarter. Mitsubishi UFJ Kokusai Asset Management Co. Ltd. boosted its holdings in shares of PACCAR by 1.6% in the 2nd quarter. Mitsubishi UFJ Kokusai Asset Management Co. Ltd. now owns 49,492 shares of the company’s stock worth $3,067,000 after acquiring an additional 783 shares in the last quarter. IFM Investors Pty Ltd boosted its holdings in shares of PACCAR by 10.9% in the 1st quarter. IFM Investors Pty Ltd now owns 11,133 shares of the company’s stock worth $737,000 after acquiring an additional 1,093 shares in the last quarter. Financial Advocates Investment Management boosted its holdings in shares of PACCAR by 26.8% in the 1st quarter. Financial Advocates Investment Management now owns 6,039 shares of the company’s stock worth $400,000 after acquiring an additional 1,278 shares in the last quarter. Finally, Commonwealth Equity Services LLC boosted its holdings in shares of PACCAR by 3.9% in the 2nd quarter. Commonwealth Equity Services LLC now owns 39,777 shares of the company’s stock worth $2,465,000 after acquiring an additional 1,479 shares in the last quarter. 61.03% of the stock is currently owned by institutional investors and hedge funds.
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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