PACCAR (NASDAQ:PCAR) Shares Gap Down – Time to Sell?

PACCAR Inc. (NASDAQ:PCAR) gapped down prior to trading on Tuesday . The stock had previously closed at $122.11, but opened at $116.50. PACCAR shares last traded at $120.6490, with a volume of 747,932 shares changing hands.

Key PACCAR News

Here are the key news stories impacting PACCAR this week:

• Positive Sentiment: PACCAR says it expects 4%–8% annual parts sales growth and cited tariff clarity that should boost margins and market share — a driver for higher-margin recurring revenue. Paccar forecasts parts sales growth
• Positive Sentiment: Industry report cites a “very strong” Class 8 truck order pace entering 2026 — supports better future truck volumes and dealer order backlog. Paccar strong Class 8 orders
• Positive Sentiment: Several analyst/market pieces highlight PCAR as a momentum and top-ranked value stock, which can attract investor interest and buying. Zacks momentum article Zacks value article
• Neutral Sentiment: Q4 EPS came in exactly at expectations ($1.06), limiting downside from an earnings miss but leaving guidance/volume questions. Zacks Q4 earnings match
• Neutral Sentiment: Analysts show mixed views: Citigroup raised its price target to $125 with a neutral rating (small upside) while coverage pieces note conflicting sentiments across industrials — keeps trading range uncertain. Citigroup price target raise Analyst conflicting sentiments
• Negative Sentiment: Revenue declined year-over-year (truck sales weakness) and Q4 revenues missed expectations — a near-term headwind for growth multiple expansion. Revenue miss coverage
• Negative Sentiment: Truist raised its target to $120 but kept a hold rating; that target is below current levels, which could check upside if more analysts follow suit. Truist price target note
• Negative Sentiment: Market commentary noted recent underperformance versus peers, highlighting risk of relative weakness if industrial demand softens. MarketWatch underperformance

Analyst Ratings Changes

Several brokerages have commented on PCAR. Raymond James Financial reiterated a “market perform” rating on shares of PACCAR in a report on Tuesday, October 21st. Weiss Ratings lowered PACCAR from a “buy (b-)” rating to a “hold (c+)” rating in a research note on Saturday, October 25th. Morgan Stanley increased their price objective on shares of PACCAR from $93.00 to $102.00 and gave the company an “equal weight” rating in a research note on Tuesday, January 13th. Citigroup raised their target price on PACCAR from $120.00 to $125.00 and gave the stock a “neutral” rating in a research report on Thursday. Finally, UBS Group set a $103.00 price target on shares of PACCAR and gave the company a “neutral” rating in a research report on Wednesday, October 22nd. One equities research analyst has rated the stock with a Strong Buy rating, five have assigned a Buy rating and eleven have given a Hold rating to the company’s stock. According to data from MarketBeat, PACCAR currently has an average rating of “Hold” and an average target price of $115.92.

PACCAR Trading Up 0.2%

The business’s 50-day moving average price is $112.94 and its two-hundred day moving average price is $103.36. The company has a debt-to-equity ratio of 0.56, a current ratio of 1.70 and a quick ratio of 2.91. The company has a market capitalization of $64.77 billion, a P/E ratio of 27.34, a PEG ratio of 14.41 and a beta of 1.01.

PACCAR (NASDAQ:PCAR) last released its quarterly earnings results on Tuesday, January 27th. The company reported $1.06 earnings per share for the quarter, meeting the consensus estimate of $1.06. The company had revenue of $4.61 billion during the quarter, compared to analysts’ expectations of $6.06 billion. PACCAR had a net margin of 8.35% and a return on equity of 13.97%. The business’s quarterly revenue was down 15.1% compared to the same quarter last year. During the same quarter in the prior year, the company earned $1.66 earnings per share. As a group, analysts forecast that PACCAR Inc. will post 7.57 EPS for the current fiscal year.

PACCAR Cuts Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Wednesday, March 4th. Stockholders of record on Wednesday, February 11th will be given a $0.33 dividend. This represents a $1.32 dividend on an annualized basis and a dividend yield of 1.1%. The ex-dividend date of this dividend is Wednesday, February 11th. PACCAR’s dividend payout ratio (DPR) is 25.83%.

Institutional Investors Weigh In On PACCAR

A number of institutional investors have recently modified their holdings of PCAR. Brighton Jones LLC lifted its stake in PACCAR by 0.3% during the fourth quarter. Brighton Jones LLC now owns 89,001 shares of the company’s stock worth $9,258,000 after purchasing an additional 290 shares during the last quarter. Focus Partners Wealth grew its stake in PACCAR by 15.4% during the first quarter. Focus Partners Wealth now owns 13,604 shares of the company’s stock worth $1,324,000 after purchasing an additional 1,812 shares during the period. GC Wealth Management RIA LLC bought a new stake in PACCAR in the second quarter valued at $298,000. HB Wealth Management LLC raised its position in shares of PACCAR by 9.6% during the second quarter. HB Wealth Management LLC now owns 52,990 shares of the company’s stock worth $5,037,000 after purchasing an additional 4,643 shares during the period. Finally, Trust Co. of Vermont lifted its position in PACCAR by 153.0% in the 2nd quarter. Trust Co. of Vermont now owns 1,027 shares of the company’s stock valued at $98,000 after acquiring an additional 621 shares in the last quarter. Institutional investors own 64.90% of the company’s stock.

About PACCAR

PACCAR Inc is a global technology leader in the design, manufacture and customer support of light-, medium- and heavy-duty commercial vehicles. The company’s products are marketed under well-known brand names including Kenworth, Peterbilt and DAF and span vocational and long-haul applications. PACCAR’s core business includes vehicle engineering and assembly as well as the supply of components and proprietary powertrain systems designed to meet regulatory and customer performance requirements.

In addition to truck manufacturing, PACCAR operates a comprehensive aftermarket parts business, distributes used trucks and provides commercial vehicle financing and leasing through its financial services operations.