PACCAR Inc (NASDAQ:PCAR) Increases Dividend to $0.33 Per Share

PACCAR Inc (NASDAQ:PCAR) declared a quarterly dividend on Wednesday, December 11th,Wall Street Journal reports. Stockholders of record on Wednesday, February 12th will be given a dividend of 0.33 per share on Wednesday, March 5th. This represents a $1.32 dividend on an annualized basis and a dividend yield of 1.14%. The ex-dividend date of this dividend is Wednesday, February 12th. This is a boost from PACCAR’s previous quarterly dividend of $0.30.

PACCAR has increased its dividend payment by an average of 6.8% per year over the last three years. PACCAR has a dividend payout ratio of 15.6% indicating that its dividend is sufficiently covered by earnings. Analysts expect PACCAR to earn $7.77 per share next year, which means the company should continue to be able to cover its $1.20 annual dividend with an expected future payout ratio of 15.4%.

PACCAR Stock Up 0.7 %

PCAR stock traded up $0.77 on Wednesday, reaching $116.14. 877,506 shares of the company traded hands, compared to its average volume of 2,577,312. PACCAR has a one year low of $90.04 and a one year high of $125.50. The company has a debt-to-equity ratio of 0.54, a current ratio of 1.25 and a quick ratio of 1.03. The company has a market cap of $60.89 billion, a P/E ratio of 13.04, a price-to-earnings-growth ratio of 1.82 and a beta of 0.91. The firm has a fifty day simple moving average of $110.17 and a 200-day simple moving average of $103.74.

PACCAR (NASDAQ:PCAR) last posted its quarterly earnings data on Tuesday, October 22nd. The company reported $1.85 earnings per share for the quarter, beating analysts’ consensus estimates of $1.82 by $0.03. PACCAR had a return on equity of 27.24% and a net margin of 13.51%. The company had revenue of $8.24 billion during the quarter, compared to analyst estimates of $7.66 billion. During the same quarter last year, the company earned $2.34 EPS. The firm’s revenue for the quarter was down 5.2% on a year-over-year basis. Research analysts anticipate that PACCAR will post 7.98 earnings per share for the current year.

Insider Activity

In related news, CEO R Preston Feight sold 27,191 shares of the business’s stock in a transaction dated Friday, November 1st. The stock was sold at an average price of $103.52, for a total value of $2,814,812.32. Following the sale, the chief executive officer now directly owns 171,776 shares in the company, valued at approximately $17,782,251.52. The trade was a 13.67 % decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, SVP Kevin D. Baney sold 9,894 shares of the business’s stock in a transaction dated Monday, October 28th. The stock was sold at an average price of $107.00, for a total value of $1,058,658.00. Following the completion of the sale, the senior vice president now owns 7,121 shares in the company, valued at $761,947. This represents a 58.15 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold 60,315 shares of company stock worth $6,358,552 over the last ninety days. Corporate insiders own 2.02% of the company’s stock.

Wall Street Analysts Forecast Growth

PCAR has been the subject of a number of research analyst reports. Morgan Stanley reduced their target price on PACCAR from $135.00 to $126.00 and set an “overweight” rating for the company in a report on Wednesday, October 23rd. Royal Bank of Canada reaffirmed a “sector perform” rating and issued a $119.00 price objective on shares of PACCAR in a report on Monday, November 4th. Citigroup lifted their price objective on PACCAR from $120.00 to $125.00 and gave the stock a “neutral” rating in a report on Monday. Evercore ISI raised PACCAR from an “in-line” rating to an “outperform” rating and lifted their price objective for the stock from $99.00 to $129.00 in a report on Wednesday, November 13th. Finally, Jefferies Financial Group lowered PACCAR from a “buy” rating to a “hold” rating and set a $120.00 price objective for the company. in a report on Friday, December 6th. Nine analysts have rated the stock with a hold rating and six have assigned a buy rating to the company. According to data from MarketBeat, the company has a consensus rating of “Hold” and an average target price of $118.25.

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.