PACCAR (NASDAQ:PCAR) Shares Gap Down Following Weak Earnings

PACCAR Inc (NASDAQ:PCAR)’s share price gapped down prior to trading on Tuesday after the company announced weaker than expected quarterly earnings. The stock had previously closed at $109.06, but opened at $98.62. PACCAR shares last traded at $102.18, with a volume of 473,289 shares traded.

The company reported $2.13 earnings per share for the quarter, missing the consensus estimate of $2.14 by ($0.01). PACCAR had a net margin of 14.30% and a return on equity of 31.71%. The firm had revenue of $8.26 billion for the quarter, compared to the consensus estimate of $8.30 billion. During the same period in the prior year, the business earned $2.33 EPS. The company’s quarterly revenue was down 2.1% compared to the same quarter last year.

PACCAR Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Thursday, September 5th. Investors of record on Thursday, August 15th will be issued a dividend of $0.30 per share. This represents a $1.20 dividend on an annualized basis and a yield of 1.18%. The ex-dividend date of this dividend is Thursday, August 15th. PACCAR’s payout ratio is 12.45%.

Wall Street Analyst Weigh In

A number of analysts recently weighed in on the stock. Raymond James assumed coverage on shares of PACCAR in a report on Friday, June 28th. They set a “market perform” rating for the company. Truist Financial reduced their target price on shares of PACCAR from $121.00 to $115.00 and set a “hold” rating for the company in a report on Tuesday, July 2nd. JPMorgan Chase & Co. reduced their target price on shares of PACCAR from $140.00 to $130.00 and set an “overweight” rating for the company in a report on Wednesday, May 1st. StockNews.com cut shares of PACCAR from a “buy” rating to a “hold” rating in a report on Tuesday, July 16th. Finally, The Goldman Sachs Group raised their price objective on shares of PACCAR from $106.00 to $121.00 and gave the stock a “neutral” rating in a research note on Tuesday, April 16th. Nine research analysts have rated the stock with a hold rating and four have assigned a buy rating to the stock. According to MarketBeat.com, PACCAR has an average rating of “Hold” and a consensus price target of $114.67.

Insiders Place Their Bets

In other PACCAR news, VP Brice J. Poplawski sold 2,067 shares of the stock in a transaction that occurred on Friday, May 10th. The shares were sold at an average price of $109.40, for a total value of $226,129.80. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. In other news, CEO R Preston Feight sold 33,850 shares of the firm’s stock in a transaction on Tuesday, May 7th. The shares were sold at an average price of $106.18, for a total transaction of $3,594,193.00. Following the transaction, the chief executive officer now owns 154,430 shares in the company, valued at approximately $16,397,377.40. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, VP Brice J. Poplawski sold 2,067 shares of the firm’s stock in a transaction on Friday, May 10th. The shares were sold at an average price of $109.40, for a total transaction of $226,129.80. The disclosure for this sale can be found here. Insiders sold a total of 45,040 shares of company stock worth $4,779,241 in the last quarter. 2.02% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently modified their holdings of PCAR. Brookstone Capital Management bought a new position in shares of PACCAR during the 4th quarter valued at $224,000. HB Wealth Management LLC raised its holdings in shares of PACCAR by 15.9% during the 4th quarter. HB Wealth Management LLC now owns 5,797 shares of the company’s stock valued at $566,000 after purchasing an additional 796 shares in the last quarter. Raymond James & Associates raised its holdings in PACCAR by 121.1% in the 4th quarter. Raymond James & Associates now owns 175,990 shares of the company’s stock worth $17,185,000 after acquiring an additional 96,375 shares during the period. CVA Family Office LLC bought a new position in PACCAR in the 4th quarter worth $71,000. Finally, Raymond James Financial Services Advisors Inc. raised its holdings in PACCAR by 18.0% in the 4th quarter. Raymond James Financial Services Advisors Inc. now owns 107,018 shares of the company’s stock worth $10,450,000 after acquiring an additional 16,360 shares during the period. Institutional investors own 64.90% of the company’s stock.

PACCAR Stock Down 6.9 %

The stock has a market cap of $53.20 billion, a P/E ratio of 10.51, a P/E/G ratio of 1.29 and a beta of 0.92. The company has a current ratio of 2.73, a quick ratio of 2.49 and a debt-to-equity ratio of 0.54. The firm’s fifty day moving average is $106.03 and its 200 day moving average is $108.61.

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.