PACCAR (NASDAQ:PCAR) Sees Unusually-High Trading Volume on Better-Than-Expected Earnings

PACCAR Inc (NASDAQ:PCARGet Rating) saw unusually-strong trading volume on Tuesday after the company announced better than expected quarterly earnings. Approximately 490,598 shares changed hands during trading, a decline of 75% from the previous session’s volume of 1,993,893 shares.The stock last traded at $104.86 and had previously closed at $102.25.

The company reported $2.64 earnings per share for the quarter, beating the consensus estimate of $2.20 by $0.44. The firm had revenue of $7.73 billion for the quarter, compared to analysts’ expectations of $7.16 billion. PACCAR had a net margin of 9.50% and a return on equity of 21.24%. The business’s revenue was up 22.9% on a year-over-year basis. During the same period in the prior year, the firm earned $1.47 EPS.

PACCAR Cuts Dividend

The business also recently declared a quarterly dividend, which will be paid on Wednesday, March 8th. Shareholders of record on Tuesday, February 14th will be issued a $0.25 dividend. The ex-dividend date is Monday, February 13th. This represents a $1.00 annualized dividend and a yield of 0.90%. PACCAR’s dividend payout ratio is currently 19.81%.

Analysts Set New Price Targets

A number of brokerages recently issued reports on PCAR. StockNews.com downgraded PACCAR from a “strong-buy” rating to a “buy” rating in a research report on Wednesday, November 23rd. Deutsche Bank Aktiengesellschaft increased their price target on PACCAR from $63.33 to $64.67 in a research report on Wednesday, October 26th. Wolfe Research downgraded PACCAR from a “peer perform” rating to an “underperform” rating in a research report on Tuesday, January 10th. Exane BNP Paribas raised PACCAR from an “underperform” rating to a “neutral” rating in a research report on Tuesday, November 29th. Finally, BNP Paribas raised PACCAR from an “underperform” rating to a “neutral” rating and increased their price target for the stock from $56.67 to $66.67 in a research report on Tuesday, November 29th. Two investment analysts have rated the stock with a sell rating, seven have assigned a hold rating, four have assigned a buy rating and one has given a strong buy rating to the company’s stock. According to MarketBeat.com, PACCAR currently has a consensus rating of “Hold” and an average price target of $65.48.

Insider Activity at PACCAR

In related news, CFO Harrie Schippers sold 43,578 shares of the firm’s stock in a transaction on Friday, October 28th. The stock was sold at an average price of $63.76, for a total transaction of $2,778,533.28. Following the sale, the chief financial officer now owns 79,869 shares of the company’s stock, valued at approximately $5,092,447.44. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. In related news, CFO Harrie Schippers sold 43,578 shares of the firm’s stock in a transaction on Friday, October 28th. The stock was sold at an average price of $63.76, for a total transaction of $2,778,533.28. Following the sale, the chief financial officer now owns 79,869 shares of the company’s stock, valued at approximately $5,092,447.44. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, VP Todd R. Hubbard sold 736 shares of the firm’s stock in a transaction on Friday, October 28th. The shares were sold at an average price of $63.33, for a total value of $46,613.33. Following the sale, the vice president now directly owns 2,442 shares in the company, valued at approximately $154,660. The disclosure for this sale can be found here. Insiders have sold a total of 65,164 shares of company stock valued at $4,156,350 in the last 90 days. 2.05% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

Several large investors have recently bought and sold shares of PCAR. Prudential PLC bought a new position in PACCAR during the 1st quarter worth $763,000. Vanguard Group Inc. raised its position in PACCAR by 2.0% during the 1st quarter. Vanguard Group Inc. now owns 36,485,080 shares of the company’s stock worth $3,213,241,000 after purchasing an additional 698,784 shares during the last quarter. Candriam Luxembourg S.C.A. raised its position in PACCAR by 66.0% during the 1st quarter. Candriam Luxembourg S.C.A. now owns 68,657 shares of the company’s stock worth $6,046,000 after purchasing an additional 27,300 shares during the last quarter. Covestor Ltd raised its position in PACCAR by 73.6% during the 1st quarter. Covestor Ltd now owns 2,118 shares of the company’s stock worth $187,000 after purchasing an additional 898 shares during the last quarter. Finally, Mackenzie Financial Corp raised its position in PACCAR by 0.7% during the 1st quarter. Mackenzie Financial Corp now owns 106,723 shares of the company’s stock worth $9,399,000 after purchasing an additional 792 shares during the last quarter. 63.92% of the stock is owned by institutional investors.

PACCAR Stock Performance

The firm has a market capitalization of $38.63 billion, a P/E ratio of 14.87, a price-to-earnings-growth ratio of 1.16 and a beta of 0.91. The company has a current ratio of 2.66, a quick ratio of 2.38 and a debt-to-equity ratio of 0.55. The company has a 50-day moving average of $73.38 and a 200-day moving average of $64.60.

PACCAR’s stock is set to split on the morning of Wednesday, March 8th. The 3-2 split was announced on Tuesday, December 6th. The newly created shares will be distributed to shareholders after the closing bell on Tuesday, March 7th.

About PACCAR

(Get Rating)

PACCAR Inc designs, manufactures, and distributes light, medium, and heavy-duty commercial trucks in the United States, 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.

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