PACCAR Sees an Upgrade in Its Rating



Price movement

PACCAR (PCAR) has a market cap of $23.4 billion. It rose 1.8% to close at $67.52 per share on January 13, 2017. The stock’s weekly, monthly, and year-to-date (or YTD) price movements were 2.5%, 1.4%, and 5.7%, respectively, on the same day.

PCAR is trading 3.2% above its 20-day moving average, 8.2% above its 50-day moving average, and 18.2% above its 200-day moving average.

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Related ETF and peers

The First Trust Nasdaq-100 Ex-Technology Sector Index ETF (QQXT) invests 1.6% of its holdings in PACCAR. The YTD price movement of QQXT was 4.5% on January 13.

The market caps of PACCAR’s competitors are as follows:

  • Cummins (CMI) — $23.5 billion
  • CNH Industrial (CNHI) — $12.3 billion
  • Penske Automotive Group (PAG) — $4.5 billion

PCAR’s rating

On January 13, 2017, BMO Capital Markets upgraded PACCAR’s rating to an “outperform” from a “market perform” and set the stock’s price target at $85.0 per share.

RBC Capital Markets upgraded PACCAR’s rating to an “outperform” from a “sector perform.” It also increased the stock’s price target to $75.0 from $54.0 per share.

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Performance of PACCAR in 3Q16

PACCAR reported 3Q16 Truck, Parts, and Other net sales and revenue of $4.0 billion, a fall of 13.0% compared to $4.5 billion in 3Q15.

Revenue in its Financial Services segment was $296.2 million in 3Q16, a fall of 1.6% compared to 3Q15. Its net income and EPS (earnings per share) fell to $346.2 million and $0.98, respectively, in 3Q16, compared to $431.2 million and $1.21, respectively, in 3Q15.

PACCAR’s cash and marketable debt securities fell 17.1%, and its inventories rose 3.5% between 4Q15 and 3Q16.

Quarterly dividend

PACCAR has declared a regular quarterly cash dividend of $0.24 per share on its common stock. The dividend will be paid on March 7, 2017, to shareholders of record at the close of business on February 14, 2017.

Next, we’ll discuss Vista Outdoor (VSTO).


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