PACCAR (PCAR) Downgraded to Hold at Zacks Investment Research
PACCAR (NASDAQ:PCAR) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a report issued on Tuesday.
According to Zacks, “In third-quarter 2018, the PACCAR’s earnings per share beat the Zacks Consensus Estimate. Also, the figure improved year over year. The company’s class 8 truck retail sales are rising primarily due to a robust economy and strong freight demand, which is expected to drive its financials. Increasing profits and positive cash flow has enabled the company to pursue an active capital deployment policy. Also, it is well-positioned in its key markets on the back of its strong cash flow, enabling it to undertake capital investments and research and development expenses. However, rise in commodity prices and tough competition in the commercial truck market is concerns for the company. Also, the company’s shares have underperformed the industry it belongs to over the past three months.”
Several other research firms have also recently issued reports on PCAR. BidaskClub raised PACCAR from a “sell” rating to a “hold” rating in a research report on Tuesday, November 6th. ValuEngine raised PACCAR from a “sell” rating to a “hold” rating in a report on Saturday, August 18th. Credit Suisse Group lowered their price target on PACCAR from $69.00 to $60.00 and set a “neutral” rating on the stock in a report on Wednesday, October 24th. Argus cut PACCAR from a “buy” rating to a “hold” rating in a report on Wednesday, October 24th. They noted that the move was a valuation call. Finally, Citigroup increased their price target on PACCAR from $65.00 to $67.00 and gave the company a “neutral” rating in a report on Wednesday, July 25th. Five investment analysts have rated the stock with a sell rating, seventeen have given a hold rating and five have given a buy rating to the company’s stock. The stock currently has a consensus rating of “Hold” and an average target price of $68.87.
PACCAR (NASDAQ:PCAR) last released its quarterly earnings data on Tuesday, October 23rd. The company reported $1.55 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.51 by $0.04. The business had revenue of $5.42 billion for the quarter, compared to analysts’ expectations of $5.50 billion. PACCAR had a return on equity of 23.52% and a net margin of 9.73%. The firm’s quarterly revenue was up 14.5% on a year-over-year basis. During the same period in the prior year, the firm posted $1.14 EPS. As a group, analysts forecast that PACCAR will post 6.16 EPS for the current year.
In other news, insider Mark C. Pigott sold 194,004 shares of the company’s stock in a transaction on Wednesday, November 7th. The stock was sold at an average price of $58.84, for a total value of $11,415,195.36. Following the completion of the sale, the insider now directly owns 3,080,449 shares in the company, valued at approximately $181,253,619.16. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, VP David J. Danforth sold 651 shares of the company’s stock in a transaction on Wednesday, November 7th. The stock was sold at an average price of $59.44, for a total value of $38,695.44. Following the completion of the sale, the vice president now owns 5,453 shares of the company’s stock, valued at $324,126.32. The disclosure for this sale can be found here. Insiders sold a total of 195,262 shares of company stock valued at $11,490,110 over the last 90 days. 2.64% of the stock is currently owned by company insiders.
Several large investors have recently bought and sold shares of PCAR. Valeo Financial Advisors LLC increased its stake in PACCAR by 85.5% in the 3rd quarter. Valeo Financial Advisors LLC now owns 2,148 shares of the company’s stock worth $123,000 after buying an additional 990 shares in the last quarter. Migdal Insurance & Financial Holdings Ltd. increased its stake in PACCAR by 5,888.2% in the 2nd quarter. Migdal Insurance & Financial Holdings Ltd. now owns 2,036 shares of the company’s stock worth $126,000 after buying an additional 2,002 shares in the last quarter. Amussen Hunsaker Associates LLC purchased a new stake in PACCAR in the 2nd quarter worth $132,000. HighPoint Advisor Group LLC purchased a new stake in PACCAR in the 3rd quarter worth $178,000. Finally, Boltwood Capital Management purchased a new stake in PACCAR in the 3rd quarter worth $204,000. Hedge funds and other institutional investors own 61.26% of the company’s stock.
PACCAR Inc designs, manufactures, and distributes light, medium, and heavy-duty commercial trucks in the United States, Europe, and internationally. It operates in three segments: Truck, Parts, and Financial Services. The Truck segment offers trucks that are used for the over-the-road and off-highway hauling of commercial and consumer goods.
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