PACCAR (NASDAQ:PCAR) Reaches New 1-Year High on Strong Earnings

PACCAR Inc. (NASDAQ:PCAR)’s stock price hit a new 52-week high on Wednesday following a stronger than expected earnings report. The company traded as high as $139.24 and last traded at $138.21, with a volume of 5675130 shares changing hands. The stock had previously closed at $133.44.

The company reported $1.43 EPS for the quarter, topping analysts’ consensus estimates of $1.36 by $0.07. PACCAR had a net margin of 9.00% and a return on equity of 12.73%. The business had revenue of $7.55 billion for the quarter, compared to analyst estimates of $7.05 billion. During the same period last year, the business posted $1.37 earnings per share. The firm’s quarterly revenue was up .5% on a year-over-year basis.

PACCAR Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Wednesday, September 2nd. Shareholders of record on Wednesday, August 12th will be issued a dividend of $0.35 per share. This represents a $1.40 dividend on an annualized basis and a yield of 1.0%. The ex-dividend date is Wednesday, August 12th. PACCAR’s dividend payout ratio is 29.79%.

More PACCAR News

Here are the key news stories impacting PACCAR this week:

• Positive Sentiment: JPMorgan raised its price target to $164 and upgraded PACCAR to “overweight,” implying substantial upside from recent levels and signaling increased confidence in the truck manufacturer’s earnings outlook. Benzinga
• Positive Sentiment: Second-quarter results exceeded expectations: adjusted earnings were $1.43 per share versus the $1.36 consensus estimate, while revenue reached $7.55 billion, above the $7.05 billion analyst forecast. Earnings also increased from $1.37 per share a year earlier. PACCAR Increases Quarterly Revenues and Profits
• Positive Sentiment: Management cited strong truck orders, higher production rates, improved freight conditions, better truck profitability and record parts revenue. Net income rose 24% from the preceding quarter, supporting the company’s near-term margin outlook. PACCAR Q2 Earnings Surpass Expectations on Truck Profit
• Neutral Sentiment: Analysts characterized truck demand as stable and regulatory conditions as clearer, which may support margins and guidance. However, quarterly revenue increased only about 0.5% year over year, suggesting that growth remains moderate. PCAR Q2 Deep Dive
• Negative Sentiment: PCAR’s lower trading action suggests investors may be taking profits or demanding stronger top-line growth after the earnings release. With the stock near its annual high and trading at roughly 28 times earnings, expectations may already reflect much of the favorable results.

Analyst Ratings Changes

A number of analysts have recently commented on the company. Weiss Ratings lowered PACCAR from a “buy (b-)” rating to a “hold (c+)” rating in a report on Thursday, May 21st. Morgan Stanley set a $119.00 price objective on PACCAR in a report on Wednesday. JPMorgan Chase & Co. lifted their target price on PACCAR from $155.00 to $164.00 and gave the company an “overweight” rating in a research report on Wednesday. Sanford C. Bernstein restated an “outperform” rating and issued a $148.00 target price on shares of PACCAR in a research note on Wednesday. Finally, Truist Financial upped their price target on PACCAR from $126.00 to $131.00 and gave the stock a “hold” rating in a research report on Thursday, July 2nd. Three analysts have rated the stock with a Buy rating and eleven have given a Hold rating to the stock. Based on data from MarketBeat, the company has a consensus rating of “Hold” and a consensus price target of $127.00.

Institutional Inflows and Outflows

Several large investors have recently bought and sold shares of PCAR. Vanguard Group Inc. raised its stake in shares of PACCAR by 0.6% during the 4th quarter. Vanguard Group Inc. now owns 63,475,226 shares of the company’s stock worth $6,951,172,000 after purchasing an additional 363,782 shares in the last quarter. Wellington Management Group LLP grew its stake in shares of PACCAR by 18.6% in the fourth quarter. Wellington Management Group LLP now owns 22,977,556 shares of the company’s stock valued at $2,516,272,000 after buying an additional 3,597,283 shares in the last quarter. State Street Corp grew its stake in shares of PACCAR by 0.4% in the fourth quarter. State Street Corp now owns 22,497,197 shares of the company’s stock valued at $2,494,269,000 after buying an additional 94,869 shares in the last quarter. Geode Capital Management LLC increased its holdings in PACCAR by 0.4% during the fourth quarter. Geode Capital Management LLC now owns 12,308,610 shares of the company’s stock worth $1,350,867,000 after buying an additional 50,622 shares during the last quarter. Finally, Norges Bank acquired a new position in PACCAR during the fourth quarter worth $727,745,000. 64.90% of the stock is owned by institutional investors and hedge funds.

PACCAR Price Performance

The company has a debt-to-equity ratio of 0.52, a current ratio of 1.82 and a quick ratio of 2.91. The company’s 50-day simple moving average is $120.46 and its 200-day simple moving average is $120.68. The stock has a market capitalization of $70.45 billion, a P/E ratio of 28.12, a price-to-earnings-growth ratio of 1.27 and a beta of 0.97.

PACCAR Company Profile

PACCAR Inc is a global technology leader in the design, manufacture and customer support of light-, medium- and heavy-duty commercial vehicles. The company’s products are marketed under well-known brand names including Kenworth, Peterbilt and DAF and span vocational and long-haul applications. PACCAR’s core business includes vehicle engineering and assembly as well as the supply of components and proprietary powertrain systems designed to meet regulatory and customer performance requirements.

In addition to truck manufacturing, PACCAR operates a comprehensive aftermarket parts business, distributes used trucks and provides commercial vehicle financing and leasing through its financial services operations.