PACCAR Inc (NASDAQ:PCAR) to Issue Dividend Increase – $0.33 Per Share

PACCAR Inc (NASDAQ:PCAR) declared a quarterly dividend on Sunday, February 9th,Wall Street Journal reports. Shareholders 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 yield of 1.25%. The ex-dividend date is Wednesday, February 12th. This is a boost from PACCAR’s previous quarterly dividend of $0.30.

PACCAR has increased its dividend by an average of 9.4% annually over the last three years. PACCAR has a payout ratio of 14.5% meaning its dividend is sufficiently covered by earnings. Research analysts expect PACCAR to earn $9.11 per share next year, which means the company should continue to be able to cover its $1.32 annual dividend with an expected future payout ratio of 14.5%.

PACCAR Trading Down 1.5 %

PACCAR stock opened at $106.02 on Monday. The company has a market cap of $55.59 billion, a price-to-earnings ratio of 13.40, a P/E/G ratio of 2.79 and a beta of 0.92. PACCAR has a one year low of $90.04 and a one year high of $125.50. The firm has a 50-day moving average of $109.49 and a 200-day moving average of $104.60. The company has a debt-to-equity ratio of 0.54, a current ratio of 1.67 and a quick ratio of 1.39.

PACCAR (NASDAQ:PCAR) last released its quarterly earnings results on Tuesday, January 28th. The company reported $1.66 earnings per share (EPS) for the quarter, missing the consensus estimate of $1.70 by ($0.04). PACCAR had a net margin of 12.36% and a return on equity of 23.53%. On average, equities analysts expect that PACCAR will post 7.6 earnings per share for the current fiscal year.

Wall Street Analyst Weigh In

A number of equities analysts have issued reports on the company. Morgan Stanley lowered 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. BNP Paribas upgraded PACCAR to a “hold” rating in a research note on Wednesday, October 16th. Citigroup lowered their target price on shares of PACCAR from $125.00 to $115.00 and set a “neutral” rating for the company in a report on Tuesday, January 14th. Jefferies Financial Group cut PACCAR from a “buy” rating to a “hold” rating and set a $120.00 price objective on the stock. in a research report on Friday, December 6th. Finally, Royal Bank of Canada reissued a “sector perform” rating and set a $119.00 target price on shares of PACCAR in a research report on Monday, November 4th. Seven investment analysts have rated the stock with a hold rating and seven have issued a buy rating to the company. According to MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and a consensus target price of $121.95.

Insider Activity at PACCAR

In other news, VP Todd R. Hubbard sold 2,000 shares of the stock in a transaction dated Friday, January 31st. The stock was sold at an average price of $112.05, for a total value of $224,100.00. Following the transaction, the vice president now directly owns 5,463 shares of the company’s stock, valued at approximately $612,129.15. This represents a 26.80 % decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, EVP Darrin C. Siver sold 103,671 shares of the company’s stock in a transaction that occurred on Friday, January 31st. The shares were sold at an average price of $111.56, for a total value of $11,565,536.76. Following the completion of the sale, the executive vice president now owns 61,005 shares in the company, valued at approximately $6,805,717.80. This represents a 62.95 % decrease in their position. The disclosure for this sale can be found here. Insiders have sold a total of 130,871 shares of company stock valued at $14,586,333 in the last ninety days. Company insiders own 2.02% of the company’s stock.

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.