PACCAR Inc (PCAR)

In the past six months, PACCAR's stock has been influenced by analyst actions and company performance reports. UBS upgraded its rating on PACCAR, while JP Morgan maintained a Neutral rating and increased its price target multiple times. Truist Securities maintained a Hold rating, adjusting its price target several times. Bernstein adjusted its price target, maintaining an Outperform rating. Morgan Stanley raised its price target, keeping an Equalweight rating. Weiss Ratings downgraded PACCAR from a "buy" to a "hold" rating. PACCAR reported its third-quarter 2025 earnings, with net income and global truck sales decreasing compared to the previous year, but revenue surpassed analyst expectations. Insider transactions included the Senior Vice President & CFO exercising and selling shares, and the CEO selling shares of the company's stock.

While explicit seasonal patterns for PACCAR's products are not detailed, truck fleet utilization in Europe and North America remained at a good level in the second quarter of 2025. Larger fleets continued their replacement cycles, while smaller companies exhibited more caution. PACCAR executives anticipate a rise in U.S. and Canada Class 8 truck sales in 2026, attributing this optimistic outlook to factors such as clarity on tariffs, new emissions regulations, and an improving freight market. The company had previously projected an increase in production for 2023 due to demand, though it noted ongoing supply base constraints.

PACCAR Inc. is a global technology leader specializing in the design, manufacture, and customer support of premium light, medium, and heavy-duty commercial trucks. The company operates across three primary segments: Truck, Parts, and Financial Services. PACCAR produces trucks under the Kenworth, Peterbilt, and DAF brands, designs advanced diesel engines and powertrain components, distributes aftermarket parts, and offers financial products and services. The company also manufactures and markets industrial winches and is categorized within the Industrials sector, specifically in the Farm & Heavy Construction Machinery industry.

PACCAR has a significant global presence, selling trucks in markets worldwide, including the United States, Canada, Europe, Mexico, South America, and Australia. Approximately half of PACCAR's revenues and profits are generated outside the United States. The company utilizes an extensive global dealer network of over 2,200 locations. DAF Trucks manufactures vehicles in multiple countries, serving Western and Eastern Europe, and exporting to Asia, Africa, North, and South America. PACCAR Global is expanding its dealer network in Asia and other international markets.

PACCAR's brand reputation has been impacted by several events in the past year. The company incurred a significant after-tax charge related to civil litigation in Europe, which could negatively affect its corporate image. Layoffs at its Quebec plant due to anticipated U.S. import tariffs could raise concerns regarding employee relations and regional economic impact. A YouTube video highlighted a price gap in the resale value of Kenworth T680 trucks, potentially impacting the reputation of PACCAR's proprietary engines. PACCAR recognized its top-performing suppliers, indicating strong relationships and collaboration within its supply chain.

PACCAR's ownership is predominantly institutional, with institutional investors and hedge funds holding a significant portion of the shares, ranging from approximately 58.9% to 64.90%. Major institutional shareholders include Vanguard Group Inc., BlackRock, Inc., State Street Corp, Wellington Management Group LLP, Geode Capital Management LLC, and Massachusetts Financial Services Co. MA. Individual investors hold about 1.87% of the shares.