Penske Automotive Group (NYSE:PAG) Reaches New 12-Month High – Here’s Why

Penske Automotive Group, Inc. (NYSE:PAG)’s share price hit a new 52-week high on Wednesday . The stock traded as high as $210.25 and last traded at $214.5520, with a volume of 37365 shares. The stock had previously closed at $195.19.

Key Headlines Impacting Penske Automotive Group

Here are the key news stories impacting Penske Automotive Group this week:

• Positive Sentiment: Penske Automotive confirmed receipt of an unsolicited, preliminary, non-binding proposal from Penske Corporation and Mitsui to take the company private at $210 per share, a premium to the recent trading level and a signal that a buyout could be near. Article Title
• Positive Sentiment: The company announced its 23rd consecutive quarterly dividend increase, lifting the payout to $1.44 per share from $1.42, which supports the stock’s income appeal and reflects continued cash generation. Article Title
• Positive Sentiment: Several news reports highlighted the potential buyout as a roughly $3.8 billion to $4 billion deal, reinforcing speculation that shareholders could receive a takeover premium. Article Title
• Neutral Sentiment: Citigroup downgraded PAG to “neutral” from “buy,” but raised its price target to $210, which is still close to the buyout talk and suggests limited near-term upside from current levels. Article Title

Wall Street Analyst Weigh In

A number of research analysts have issued reports on the stock. Citigroup lowered shares of Penske Automotive Group from a “buy” rating to a “neutral” rating and increased their target price for the stock from $199.00 to $210.00 in a research report on Thursday. Benchmark downgraded shares of Penske Automotive Group from a “buy” rating to a “hold” rating in a research report on Wednesday. Barclays boosted their price target on Penske Automotive Group from $190.00 to $220.00 and gave the company an “overweight” rating in a research note on Wednesday, July 15th. Bank of America increased their price target on Penske Automotive Group from $200.00 to $238.00 and gave the stock a “buy” rating in a research report on Thursday, July 9th. Finally, UBS Group set a $190.00 price objective on Penske Automotive Group in a research note on Friday, July 10th. Five investment analysts have rated the stock with a Buy rating and five have issued a Hold rating to the company. Based on data from MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and a consensus price target of $196.00.

Penske Automotive Group Trading Up 0.5%

The firm has a market capitalization of $14.18 billion, a price-to-earnings ratio of 16.10, a P/E/G ratio of 2.78 and a beta of 0.87. The company has a debt-to-equity ratio of 0.39, a current ratio of 0.96 and a quick ratio of 0.22. The firm’s 50-day simple moving average is $179.65 and its 200 day simple moving average is $166.53.

Penske Automotive Group (NYSE:PAG) last released its earnings results on Wednesday, April 29th. The company reported $3.05 earnings per share for the quarter, topping the consensus estimate of $2.91 by $0.14. The firm had revenue of $7.86 billion during the quarter, compared to analysts’ expectations of $7.71 billion. Penske Automotive Group had a return on equity of 15.13% and a net margin of 2.85%.The company’s quarterly revenue was down 1.1% on a year-over-year basis. During the same period in the prior year, the company earned $3.66 earnings per share. Equities analysts expect that Penske Automotive Group, Inc. will post 13.43 earnings per share for the current year.

Penske Automotive Group Increases Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Tuesday, September 1st. Investors of record on Friday, August 14th will be given a dividend of $1.44 per share. The ex-dividend date is Friday, August 14th. This represents a $5.76 annualized dividend and a dividend yield of 2.7%. This is an increase from Penske Automotive Group’s previous quarterly dividend of $1.42. Penske Automotive Group’s dividend payout ratio is currently 42.39%.

Insider Activity

In related news, Director Greg C. Smith sold 1,488 shares of the firm’s stock in a transaction dated Monday, May 18th. The stock was sold at an average price of $160.02, for a total value of $238,109.76. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, CFO Michelle Hulgrave sold 1,500 shares of Penske Automotive Group stock in a transaction dated Tuesday, June 2nd. The shares were sold at an average price of $171.80, for a total value of $257,700.00. Following the completion of the transaction, the chief financial officer owned 17,596 shares in the company, valued at approximately $3,022,992.80. This represents a 7.86% decrease in their position. The disclosure for this sale is available in the SEC filing. Company insiders own 52.90% of the company’s stock.

Institutional Investors Weigh In On Penske Automotive Group

Several hedge funds and other institutional investors have recently made changes to their positions in the stock. Navalign LLC bought a new position in Penske Automotive Group in the 4th quarter valued at approximately $26,000. International Assets Investment Management LLC bought a new stake in shares of Penske Automotive Group during the fourth quarter worth $30,000. Rothschild Investment LLC grew its stake in shares of Penske Automotive Group by 37.5% during the fourth quarter. Rothschild Investment LLC now owns 242 shares of the company’s stock worth $38,000 after buying an additional 66 shares during the last quarter. Acadian Asset Management LLC acquired a new position in shares of Penske Automotive Group during the first quarter worth $42,000. Finally, Versant Capital Management Inc increased its holdings in shares of Penske Automotive Group by 179.0% during the second quarter. Versant Capital Management Inc now owns 279 shares of the company’s stock worth $50,000 after buying an additional 179 shares in the last quarter. 77.08% of the stock is owned by institutional investors.

Penske Automotive Group Company Profile

Penske Automotive Group, Inc (NYSE: PAG), headquartered in Bloomfield Township, Michigan, is an international transportation services company primarily focused on automotive and commercial truck dealerships. The company retails new and pre-owned vehicles across a broad spectrum of brands, while offering parts, maintenance, collision repair and reconditioning services. In addition, Penske provides financing and insurance products through its integrated finance and insurance operations, supporting both retail customers and commercial clients.

Formed in 1990 as United Auto Group and publicly traded since 1999, Penske Automotive Group has grown through organic expansion and strategic acquisitions to establish a network of dealerships and service centers across the United States and Europe.