PACCAR (NASDAQ:PCAR) Shares Gap Down – Should You Sell?

PACCAR Inc (NASDAQ:PCAR)’s share price gapped down prior to trading on Tuesday . The stock had previously closed at $109.61, but opened at $106.22. PACCAR shares last traded at $103.43, with a volume of 730,219 shares trading hands.

Analysts Set New Price Targets

PCAR has been the topic of a number of recent analyst reports. BNP Paribas upgraded PACCAR to a “hold” rating in a research report on Wednesday, October 16th. Citigroup increased their target price on PACCAR from $100.00 to $108.00 and gave the company a “neutral” rating in a research report on Wednesday, October 9th. Evercore ISI cut their price target on shares of PACCAR from $109.00 to $99.00 and set an “in-line” rating for the company in a report on Monday, August 19th. Raymond James started coverage on shares of PACCAR in a report on Friday, June 28th. They set a “market perform” rating on the stock. Finally, JPMorgan Chase & Co. cut their target price on shares of PACCAR from $125.00 to $122.00 and set an “overweight” rating for the company in a research note on Wednesday. Nine analysts have rated the stock with a hold rating and five have issued a buy rating to the company’s stock. According to MarketBeat.com, the company presently has an average rating of “Hold” and a consensus price target of $114.18.

PACCAR Price Performance

The firm has a market capitalization of $54.41 billion, a PE ratio of 11.00, a price-to-earnings-growth ratio of 1.70 and a beta of 0.91. The stock’s 50 day simple moving average is $98.98 and its two-hundred day simple moving average is $103.41. The company has a debt-to-equity ratio of 0.52, a quick ratio of 2.54 and a current ratio of 2.78.

PACCAR (NASDAQ:PCAR) last released its quarterly earnings data on Tuesday, October 22nd. The company reported $1.85 earnings per share for the quarter, topping analysts’ consensus estimates of $1.82 by $0.03. PACCAR had a return on equity of 29.87% and a net margin of 14.07%. The company had revenue of $8.24 billion for the quarter, compared to analyst estimates of $7.66 billion. During the same quarter in the previous year, the company posted $2.34 earnings per share. The firm’s revenue for the quarter was down 5.2% compared to the same quarter last year. On average, sell-side analysts forecast that PACCAR Inc will post 8.08 EPS for the current year.

PACCAR Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Wednesday, December 4th. Investors of record on Wednesday, November 13th will be given a dividend of $0.30 per share. This represents a $1.20 dividend on an annualized basis and a dividend yield of 1.16%. The ex-dividend date is Wednesday, November 13th. PACCAR’s payout ratio is 12.71%.

Insiders Place Their Bets

In related news, CEO R Preston Feight sold 27,834 shares of the stock in a transaction that occurred on Wednesday, July 31st. The shares were sold at an average price of $98.70, for a total transaction of $2,747,215.80. Following the completion of the transaction, the chief executive officer now owns 162,782 shares of the company’s stock, valued at approximately $16,066,583.40. This trade represents a 0.00 % decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. 2.02% of the stock is currently owned by insiders.

Hedge Funds Weigh In On PACCAR

A number of hedge funds and other institutional investors have recently bought and sold shares of the company. New Covenant Trust Company N.A. purchased a new position in PACCAR in the 1st quarter valued at approximately $27,000. Riverview Trust Co purchased a new position in PACCAR in the first quarter valued at $29,000. Quarry LP acquired a new position in PACCAR during the 2nd quarter worth $26,000. Meeder Asset Management Inc. grew its stake in PACCAR by 269.7% during the 2nd quarter. Meeder Asset Management Inc. now owns 281 shares of the company’s stock worth $29,000 after purchasing an additional 205 shares in the last quarter. Finally, Ashton Thomas Private Wealth LLC acquired a new stake in PACCAR in the 2nd quarter valued at about $36,000. 64.90% of the stock is currently owned by hedge funds and other institutional investors.

About PACCAR

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.