PACCAR Inc (PCAR): Analyst Ratings You Should Pay Attention To

Analysts at Piper Jaffray upped their rating on shares of PACCAR Inc (NASDAQ:PCAR) from Neutral to Overweight in their opinion released on October 24. Argus analysts have downgraded their rating of PCAR stock from Buy to Hold in a separate flash note to investors on October 24.

PACCAR Inc (NASDAQ:PCAR) short sellers believe it will decline in price. The most recent short interest data has been released for the November 15th settlement date, which shows a 380,157 share increase in total short interest for PCAR, to 5,725,386, a surge of 7.11% since October 31st. Average daily volume for PACCAR Inc at the November 15th settlement plunged to 1,818,462, as compared to 3,192,290 at the October 31st report. That brought days to cover to 3.148477, a 88.03% increase from the 1.674418 days to cover recorded at the prior short interest data release. You could look at analyst ratings. The average analyst recommendations at 3 suggests buying these shares. But the opinions of a small number of people, though sometimes influential, doesn’t always speak for the hundreds of thousands of traders on Wall Street.

By watching the trading activity of corporate insiders, it will become easier to get a sense of PACCAR Inc (NASDAQ:PCAR)’s prospects. The earliest insider trade took place on 11/13/2018. Grandstaff Douglas S parted with a total of 0.61 thousand shares of company at average share price of $59.67. The total for the sales was set at $36.22 thousand. After this transaction, the VICE PRESIDENT/GENERAL COUNSEL account balance stood at 0.23 thousand shares. The stock lost -1.83 percent since that insider sale. On 11/07/2018, Pigott Mark C, Executive Chairman, sold 194 thousand shares at a price per share of $58.84. This removed 11.42 million shares from the insider’s fortune and the stock saw a -0.44 percent retreat in value since the news became public. This transaction left 369.12 thousand shares in the Executive Chairman account. On 11/07/2018, VICE PRESIDENT Danforth David J performed a sale transaction worth $38.7 thousand. This sale at $59.44 each has eliminated 0.65 thousand shares from the insider’s portfolio position. Meanwhile, shares have recorded -1.45 percent decrease since the transaction was reported. The insider now is left with 12.77 thousand shares remaining in the account. Siver Darrin C, who performs the Senior Vice President job, sold 5.75 thousand shares for $370.65 thousand. The disposal occurred on 08/03/2018 was priced at $64.46 per share. The share price plunged -9.12 percent since the reporting date. Siver Darrin C now left with a stake of 11.41 thousand PCAR stock worth $668.16 thousand after the insider selling.

PACCAR Inc (PCAR) is expected to jump by 12.99 percent over the next 12 months, according to price target estimates compiled by finviz. Meanwhile, they have set a $85-month high price target. This represents a whopping 45.1 percent increase from where shares are trading today. The 12-month median price target assigned by the analysts stands at $65, which represents a return potential of 10.96 percent when compared to the closing price of the stock of $58.58 on Thursday, December 06. The lowest price target for the stock is $57 — slightly more than -2.7 percent from PCAR’s current share price.

The shares are currently floating around the first support level of $56.92. Below this, the next support is placed in the zone of $55.26. Till the time, the PCAR stock trades above this level, bulls have nothing to fear. On momentum oscillators front, ‘RSI’ has touched 39.02 on daily chart, which may remain a cause for comfort. If the price breaks below $55.26 level on closing basis, then we may see more profit booking and the stock may show further weakness. On the flipside, hitting the $59.43 mark may result into a pull-back move towards $60.28 level.

PCAR shares dropped -0.74 points or -1.25 percent on Thursday to $58.58 with a heavy trade volume of 4.662 million shares. After opening the session at $58.2, the shares went as high as $58.62 and as low as $56.11, the range within which the stock’s price traded throughout the day. The firm is left with a market cap of $20.2 billion and now has 344.32 million shares outstanding. PACCAR Inc (PCAR) stock has gained 0.21 percent of market value in 21 trading days.

PCAR stock has a trailing 3-year beta of 1.39, offering the possibility of a higher rate of return, but also posing more risk. The portion of a company’s profit allocated to each outstanding share of common stock was $5.77 a share in the trailing twelve months. The stock’s value has fallen -17.59 percent year to date (YTD) against a decline of -13.63 percent in 12 month’s time. The company’s shares still trade -26.49 percent away from its 1-year high of $79.69 and 8.58 percent up from 52-week low of $53.95. The average consensus rating on the company is 3, on a scale where 5 equates to a unanimous sell rating. In short, the mean analyst recommendations are calling this stock a hold.

Shares of PACCAR Inc (PCAR) are trading at a P/E ratio of 10.51 times earnings reported for the past 12 months. The industry PCAR operates in has an average P/E of 13.71. Its P/E ratio went as low as 10.24X and as high as 42.37 over the 5-year span. Further, it is sporting a 0.89 on the Price-to-Sales ratio. Compare this with the industry average P/S of 1.08. 18.7 percent is the gross profit margin for PACCAR Inc and operating margin sits at 11.3 percent. Along with this, the net profit margin is 9.7 percent.

PCAR will be showing off its Q4 earnings on February 01. Analysts are forecasting revenue to climb 12.4 percent to $5.76B in the next fiscal quarter, while earnings are seen soaring by nearly 29.66 percent to $1.53 per share. History has shown that shares in PACCAR Inc have gone down on 22 different earnings reaction days and are predicted to add 0.02 percent when the company reports upcoming earnings. In last reported earnings results, it earned $1.55 per share, better than the $1.51, adjusted, expected by Thomson Reuters consensus estimate. Revenue was $5.42B, worse than the $5.51B analysts expected. Earnings are estimated to increase by 187 percent this year, 1.66 percent next year and continue to increase by 5.01 percent annually for the next 5 years.