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

PACCAR Inc (NASDAQ:PCAR – Get 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

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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.