PACCAR (PCAR) Lifted to Buy at Zacks Investment Research

Zacks Investment Research upgraded shares of PACCAR (NASDAQ:PCAR) from a hold rating to a buy rating in a research note issued to investors on Tuesday morning. Zacks Investment Research currently has $70.00 target price on the stock.

According to Zacks, “The Zacks Consensus Estimate for PACCAR’s quarterly and yearly earnings have been rising. The company’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. 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.”

PCAR has been the subject of several other reports. Credit Suisse Group dropped their target price on shares of PACCAR from $70.00 to $69.00 and set a neutral rating for the company in a research report on Wednesday, July 25th. ValuEngine cut shares of PACCAR from a sell rating to a strong sell rating in a research report on Wednesday, July 4th. BidaskClub raised shares of PACCAR from a hold rating to a buy rating in a research report on Friday, October 5th. Mizuho assumed coverage on shares of PACCAR in a research report on Friday, June 29th. They set a neutral rating and a $70.00 price target for the company. Finally, Citigroup lifted their price target on shares of PACCAR from $65.00 to $67.00 and gave the company a neutral rating in a research report on Wednesday, July 25th. Five equities research analysts have rated the stock with a sell rating, eighteen have issued a hold rating and five have issued a buy rating to the company. The stock presently has a consensus rating of Hold and a consensus price target of $71.52.

Shares of NASDAQ:PCAR traded up $0.05 on Tuesday, hitting $60.39. The company had a trading volume of 74,471 shares, compared to its average volume of 1,850,185. PACCAR has a 1 year low of $59.65 and a 1 year high of $79.69. The company has a current ratio of 2.52, a quick ratio of 2.34 and a debt-to-equity ratio of 0.69. The stock has a market cap of $21.64 billion, a price-to-earnings ratio of 14.23, a P/E/G ratio of 0.95 and a beta of 1.25.

PACCAR (NASDAQ:PCAR) last posted its earnings results on Tuesday, July 24th. The company reported $1.59 EPS for the quarter, topping the Thomson Reuters’ consensus estimate of $1.43 by $0.16. PACCAR had a net margin of 9.39% and a return on equity of 22.68%. The firm had revenue of $5.47 billion during the quarter, compared to analysts’ expectations of $5.39 billion. During the same period last year, the company posted $1.06 EPS. The company’s quarterly revenue was up 24.3% compared to the same quarter last year. Equities analysts forecast that PACCAR will post 6.05 EPS for the current fiscal year.

The company also recently disclosed a quarterly dividend, which will be paid on Tuesday, December 4th. Shareholders of record on Tuesday, November 13th will be paid a dividend of $0.28 per share. 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 1.85%. PACCAR’s dividend payout ratio is currently 26.29%.

PACCAR announced that its board has authorized a share repurchase plan on Monday, July 9th that permits the company to buyback $300.00 million in shares. This buyback authorization permits the company to purchase up to 1.4% of its stock through open market purchases. Stock buyback plans are often an indication that the company’s board believes its shares are undervalued.

In other PACCAR news, VP David J. Danforth sold 3,304 shares of the firm’s stock in a transaction dated Friday, July 27th. The shares were sold at an average price of $65.57, for a total transaction of $216,643.28. Following the completion of the sale, the vice president now directly owns 7,878 shares in the company, valued at approximately $516,560.46. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, insider Darrin C. Siver sold 5,750 shares of the firm’s stock in a transaction dated Friday, August 3rd. The shares were sold at an average price of $64.46, for a total transaction of $370,645.00. Following the sale, 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 have sold 9,634 shares of company stock valued at $625,510. 2.64% of the stock is owned by company insiders.

A number of large investors have recently added to or reduced their stakes in PCAR. Summit Trail Advisors LLC increased its stake in PACCAR by 5,414.0% during the 1st quarter. Summit Trail Advisors LLC now owns 1,540,398 shares of the company’s stock valued at $1,540,000 after purchasing an additional 1,512,462 shares in the last quarter. Federated Investors Inc. PA increased its stake in PACCAR by 9,286.5% during the 2nd quarter. Federated Investors Inc. PA now owns 902,329 shares of the company’s stock valued at $55,908,000 after purchasing an additional 892,716 shares in the last quarter. Schroder Investment Management Group increased its stake in PACCAR by 934.2% during the 2nd quarter. Schroder Investment Management Group now owns 869,356 shares of the company’s stock valued at $53,935,000 after purchasing an additional 785,295 shares in the last quarter. LSV Asset Management increased its stake in PACCAR by 486.7% during the 2nd quarter. LSV Asset Management now owns 469,933 shares of the company’s stock valued at $29,117,000 after purchasing an additional 389,833 shares in the last quarter. Finally, FMR LLC increased its stake in PACCAR by 8.8% during the 2nd quarter. FMR LLC now owns 4,794,270 shares of the company’s stock valued at $297,053,000 after purchasing an additional 389,659 shares in the last quarter. Institutional investors and hedge funds own 61.19% 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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