NEW YORK (TheStreet) -- Shares of PACCAR (PCAR - Get Report) closed down 1.97% to $44.30 in afternoon trading on Wednesday as the medium and heavy-duty truck manufacturer continues its run of downgrades.
TheStreet Ratings downgraded the stock to "hold" from "buy" today, while lowering its letter grade to C+ from B-.
TheStreet did identify several strengths, such as an impressive record of earnings per share growth, compelling growth in net income and notable return on equity.
However, it also identified several weaknesses including a generally disappointing performance in the stock itself, weak operating cash flow and poor profit margins.
(Subscribers get upgrades and downgrades ahead of the market. Find out more on TheStreet Quant Ratings here.)
TheStreet wasn't the only one to comment on the company recently as analysts at Robert W. Baird downgraded the stock to "neutral" from "outperform," while slashing their price target objective to $55 from $85.
TheStreet's chartist Bruce Kamich also commented on the stock today, reflecting on the direction of the chart of the Bellevue, WA-based company.
"This one-year chart of PCAR, above, shows prices moving sideways until the end of July. PCAR then promptly started lower while bounces toward the underside of the declining 50-day moving average failed. The On-Balance-Volume (OBV) line has moved lower since late July, telling us that sellers have been more aggressive and volume has been heavier on days when PCAR has closed lower," Kamich said.
As far as the company's long term chart, Kamich said, "The prices for PCAR have declined so much this past year that we needed to look at a five-year chart. The 2014-2015 top is big and has resulted in a steep decline, but with no bottoming price action evident, a test of the 2012 lows could be in the cards. A retest of the $35 to $40 area is within reason."
TheStreet Ratings uses an algorithmic model to determine a rating for risk-adjusted total return prospect over 12 months.