PACCAR (NASDAQ:PCAR) Reaches New 52-Week Low on Disappointing Earnings

PACCAR Inc (NASDAQ:PCAR)’s share price hit a new 52-week low during mid-day trading on Tuesday after the company announced weaker than expected quarterly earnings. The stock traded as low as $84.65 and last traded at $86.39, with a volume of 836362 shares traded. The stock had previously closed at $92.04.

The company reported $1.46 EPS for the quarter, missing the consensus estimate of $1.59 by ($0.13). PACCAR had a return on equity of 23.53% and a net margin of 12.36%. During the same quarter in the prior year, the company earned $2.27 earnings per share. The firm’s revenue was down 16.0% compared to the same quarter last year.

PACCAR Increases Dividend

The company also recently disclosed a quarterly dividend, which was paid on Wednesday, March 5th. Investors of record on Wednesday, February 12th were issued a dividend of $0.33 per share. This is an increase from PACCAR’s previous quarterly dividend of $0.30. This represents a $1.32 annualized dividend and a dividend yield of 1.52%. The ex-dividend date of this dividend was Wednesday, February 12th. PACCAR’s dividend payout ratio is currently 16.69%.

Wall Street Analyst Weigh In

PCAR has been the topic of a number of research reports. Evercore ISI lowered their price objective on PACCAR from $129.00 to $127.00 and set an “outperform” rating on the stock in a research report on Wednesday, February 19th. Truist Financial reduced their price objective on shares of PACCAR from $113.00 to $104.00 and set a “hold” rating for the company in a report on Tuesday, April 8th. Citigroup lowered their target price on shares of PACCAR from $105.00 to $95.00 and set a “neutral” rating on the stock in a research note on Tuesday, April 8th. Bank of America upgraded shares of PACCAR from a “neutral” rating to a “buy” rating and raised their price target for the stock from $116.00 to $121.50 in a research note on Tuesday, January 14th. Finally, Melius upgraded PACCAR from a “hold” rating to a “buy” rating in a research note on Tuesday, March 18th. One equities research analyst has rated the stock with a sell rating, seven have assigned a hold rating, six have issued a buy rating and one has given a strong buy rating to the stock. According to data from MarketBeat.com, the company presently has a consensus rating of “Hold” and a consensus price target of $108.59.

Insiders Place Their Bets

In related news, VP Todd R. Hubbard sold 2,000 shares of the firm’s stock in a transaction dated Friday, January 31st. The stock was sold at an average price of $112.05, for a total value of $224,100.00. Following the transaction, the vice president now owns 5,463 shares in the company, valued at $612,129.15. This trade represents a 26.80 % decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, CEO R Preston Feight sold 25,200 shares of the company’s stock in a transaction dated Friday, January 31st. The shares were sold at an average price of $110.98, for a total transaction of $2,796,696.00. Following the transaction, the chief executive officer now owns 206,129 shares in the company, valued at approximately $22,876,196.42. The trade was a 10.89 % decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last quarter, insiders have sold 165,547 shares of company stock valued at $18,261,908. 2.02% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On PACCAR

Several large investors have recently modified their holdings of PCAR. E Fund Management Hong Kong Co. Ltd. lifted its stake in PACCAR by 666.7% in the 1st quarter. E Fund Management Hong Kong Co. Ltd. now owns 276 shares of the company’s stock valued at $27,000 after purchasing an additional 240 shares during the last quarter. Meeder Asset Management Inc. increased its position in PACCAR by 221.8% during the 4th quarter. Meeder Asset Management Inc. now owns 280 shares of the company’s stock valued at $29,000 after purchasing an additional 193 shares during the period. Alpine Bank Wealth Management acquired a new stake in PACCAR during the first quarter worth approximately $29,000. Golden State Wealth Management LLC bought a new stake in PACCAR in the 4th quarter valued at about $37,000. Finally, Kestra Investment Management LLC acquired a new stake in PACCAR in the 4th quarter valued at $37,000. 64.90% of the stock is currently owned by institutional investors.

PACCAR Trading Down 5.9 %

The company has a quick ratio of 1.39, a current ratio of 2.54 and a debt-to-equity ratio of 0.56. The stock has a market capitalization of $45.46 billion, a PE ratio of 10.98, a P/E/G ratio of 2.77 and a beta of 0.96. The firm has a 50 day moving average price of $97.24 and a 200 day moving average price of $105.27.

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.