PACCAR (NASDAQ: PCAR) has received a significant boost in its stock price target, now set at $142.00, an increase from the previous target of $133.00. This adjustment was made by JPMorgan Chase & Co. in a research report published on October 21, 2023, and the firm maintains an “overweight” rating on the stock.
Several other financial institutions have recently weighed in on PACCAR’s performance. On the same day, Raymond James Financial reaffirmed a “market perform” rating for the company. Additionally, Jefferies Financial Group issued a “hold” rating with a price target of $90.00, while Wolfe Research upgraded PACCAR from “underperform” to “peer perform” a day later. Zacks Research also adjusted its rating, moving from a “strong sell” to a “hold” on December 8, 2023. Finally, Citigroup maintained a “neutral” rating, raising its target price to $120.00 from $113.56.
Overall, two analysts have rated PACCAR as a “Strong Buy,” five have given it a “Buy” rating, and eleven analysts have assigned a “Hold” rating. According to data from MarketBeat.com, the consensus rating for PACCAR is “Moderate Buy,” with an average price target of $112.33.
Financial Performance and Market Reactions
PACCAR recently released its quarterly earnings results, revealing $1.12 earnings per share for the quarter, which fell short of analysts’ expectations of $1.14 by $0.02. The company’s revenue totaled $7.24 billion, surpassing predictions of $6.23 billion. Despite this positive revenue figure, PACCAR’s revenue dropped by 20.7% year-over-year, with the previous year showing earnings of $1.85 per share.
Looking ahead, analysts forecast that PACCAR will achieve an earnings per share (EPS) of $7.57 for the current fiscal year.
In addition to its earnings report, PACCAR has also made headlines with its recent decision regarding dividends. The company declared a quarterly dividend of $0.33 per share, payable on March 4, 2024. Stockholders of record as of February 11, 2024, will be eligible for this dividend, which represents an annualized dividend of $1.32 and a yield of 1.1%. The dividend payout ratio stands at 25.83%.
Insider Transactions and Institutional Ownership
On October 27, 2023, PACCAR’s Chief Financial Officer, Brice J. Poplawski, sold 3,369 shares of the company at an average price of $101.15, totaling $340,774.35. Following this transaction, Poplawski now holds only 468 shares valued at approximately $47,338.20, indicating an 87.80% decrease in his ownership stake. This sale was publicly disclosed in a filing with the U.S. Securities and Exchange Commission (SEC).
Institutional investors hold a significant portion of PACCAR’s stock, owning 64.90% of the company. Some notable movements include Norges Bank, which acquired a new position valued at approximately $472.5 million during the second quarter. Pacer Advisors Inc. increased its stake by an impressive 2,389.2% in the third quarter, now owning over 2 million shares worth $197.7 million. Meanwhile, American Century Companies Inc. raised its holdings by 235.9%, with a current ownership of about 2.54 million shares valued at $249.8 million.
PACCAR continues to be a key player in the commercial vehicle market, recognized for its engineering and assembly capabilities, alongside a robust aftermarket parts business and financial services. The company’s stock movements and performance indicators signal its ongoing influence in the industry as it adapts to market challenges and opportunities.
