Zacks Investment Research Lowers PACCAR Inc. (PCAR) to Sell
PACCAR Inc. (NASDAQ:PCAR) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a report issued on Tuesday.
According to Zacks, “PACCAR has underperformed the Zacks categorized Auto Manufacturers-Domestic industry over the last three months. The fall in the price of used trucks, which is mainly due to higher supply, is a headwind for the company. Also, the company faces tough competition in the commercial trucks market in U.S. and Canada and Europe. Moreover, the company has lowered down its 2017 expectations for Class 8 industry retail sales for the U.S. and Canada and industry sales in the above 16-ton truck market in Europe in comparison to 2016 figure.”
Several other equities analysts also recently weighed in on PCAR. Seaport Global Securities reiterated a “buy” rating and issued a $80.00 price target on shares of PACCAR in a report on Thursday, April 6th. Jefferies Group LLC set a $77.00 price target on shares of PACCAR and gave the stock a “buy” rating in a report on Sunday, May 28th. Barclays PLC set a $56.00 price target on shares of PACCAR and gave the stock a “sell” rating in a report on Wednesday, April 26th. BidaskClub downgraded shares of PACCAR from a “sell” rating to a “strong sell” rating in a report on Saturday. Finally, BMO Capital Markets reiterated a “buy” rating and issued a $85.00 price target on shares of PACCAR in a report on Thursday, April 20th. Three research analysts have rated the stock with a sell rating, nine have assigned a hold rating and eight have assigned a buy rating to the company. The company has a consensus rating of “Hold” and a consensus target price of $69.19.
Shares of PACCAR (PCAR) traded up 0.19% during mid-day trading on Tuesday, hitting $63.31. 641,105 shares of the stock were exchanged. PACCAR has a 52-week low of $48.17 and a 52-week high of $70.12. The stock has a 50-day moving average price of $64.25 and a 200 day moving average price of $66.26. The firm has a market cap of $22.24 billion, a price-to-earnings ratio of 15.65 and a beta of 1.14.
PACCAR (NASDAQ:PCAR) last issued its quarterly earnings results on Tuesday, April 25th. The company reported $0.88 earnings per share for the quarter, hitting the Thomson Reuters’ consensus estimate of $0.88. PACCAR had a net margin of 8.56% and a return on equity of 19.13%. The company had revenue of $4.24 billion for the quarter, compared to the consensus estimate of $3.85 billion. During the same quarter in the prior year, the company earned $0.99 EPS. PACCAR’s quarterly revenue was down 1.4% on a year-over-year basis. On average, equities research analysts expect that PACCAR will post $3.69 earnings per share for the current year.
The company also recently disclosed a quarterly dividend, which was paid on Tuesday, June 6th. Stockholders of record on Friday, May 19th were paid a dividend of $0.25 per share. This is a boost from PACCAR’s previous quarterly dividend of $0.24. The ex-dividend date was Wednesday, May 17th. This represents a $1.00 dividend on an annualized basis and a dividend yield of 1.58%. PACCAR’s dividend payout ratio (DPR) is presently 24.69%.
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In other news, VP Alma Lily Ley sold 904 shares of the firm’s stock in a transaction that occurred on Wednesday, May 3rd. The shares were sold at an average price of $67.39, for a total transaction of $60,920.56. Following the sale, the vice president now owns 1,679 shares of the company’s stock, valued at approximately $113,147.81. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. 2.64% of the stock is owned by company insiders.
A number of large investors have recently added to or reduced their stakes in the stock. Benjamin F. Edwards & Company Inc. boosted its stake in PACCAR by 6.4% in the first quarter. Benjamin F. Edwards & Company Inc. now owns 1,588 shares of the company’s stock worth $107,000 after buying an additional 95 shares in the last quarter. FUKOKU MUTUAL LIFE INSURANCE Co boosted its stake in PACCAR by 33.3% in the first quarter. FUKOKU MUTUAL LIFE INSURANCE Co now owns 1,600 shares of the company’s stock worth $108,000 after buying an additional 400 shares in the last quarter. Private Advisor Group LLC bought a new stake in PACCAR during the first quarter worth about $175,000. Boltwood Capital Management bought a new stake in PACCAR during the first quarter worth about $201,000. Finally, Schneider Downs Wealth Management Advisors LP bought a new stake in PACCAR during the first quarter worth about $202,000. 61.75% of the stock is currently owned by hedge funds and other institutional investors.
PACCAR Inc (PACCAR) is a technology company. The Company’s segments include Truck, Parts and Financial Services. The Truck segment includes the design, manufacture and distribution of light-, medium- and heavy-duty commercial trucks. The Company’s trucks are marketed under the Kenworth, Peterbilt and DAF nameplates.
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