Penske Automotive Group, Inc. (NYSE:PAG) Receives Consensus Recommendation of “Moderate Buy” from Analysts

Penske Automotive Group, Inc. (NYSE:PAG) has received an average rating of “Moderate Buy” from the six ratings firms that are currently covering the company, Marketbeat.com reports. Two equities research analysts have rated the stock with a hold recommendation and four have issued a buy recommendation on the company. The average 1-year price target among brokers that have issued a report on the stock in the last year is $181.00.

Several equities research analysts have recently issued reports on the company. JPMorgan Chase & Co. raised Penske Automotive Group from an “underweight” rating to a “neutral” rating and raised their price target for the company from $155.00 to $175.00 in a research report on Tuesday, August 5th. Morgan Stanley upped their target price on shares of Penske Automotive Group from $180.00 to $190.00 and gave the company an “overweight” rating in a research note on Thursday, August 14th. Citigroup increased their price objective on Penske Automotive Group from $185.00 to $195.00 and gave the stock a “buy” rating in a research note on Monday, May 19th. Bank of America lifted their target price on shares of Penske Automotive Group from $190.00 to $205.00 and gave the company a “buy” rating in a research note on Monday, June 16th. Finally, Stephens reaffirmed an “equal weight” rating and issued a $140.00 price target on shares of Penske Automotive Group in a report on Wednesday, June 11th.

Penske Automotive Group Trading Up 3.4%

Penske Automotive Group stock opened at $187.1050 on Tuesday. The company has a debt-to-equity ratio of 0.16, a current ratio of 0.90 and a quick ratio of 0.21. The company has a market capitalization of $12.36 billion, a price-to-earnings ratio of 13.02 and a beta of 0.87. The company’s fifty day moving average price is $175.89 and its two-hundred day moving average price is $164.78. Penske Automotive Group has a one year low of $134.05 and a one year high of $188.43.

Penske Automotive Group (NYSE:PAG) last issued its quarterly earnings data on Wednesday, July 30th. The company reported $3.78 earnings per share for the quarter, beating analysts’ consensus estimates of $3.56 by $0.22. Penske Automotive Group had a return on equity of 17.43% and a net margin of 3.13%.The business had revenue of $7.66 billion for the quarter, compared to the consensus estimate of $7.98 billion. During the same period last year, the business earned $3.61 EPS. The firm’s revenue was down .4% compared to the same quarter last year. On average, analysts forecast that Penske Automotive Group will post 13.86 earnings per share for the current fiscal year.

Penske Automotive Group Increases Dividend

The company also recently declared a quarterly dividend, which will be paid on Wednesday, September 3rd. Stockholders of record on Friday, August 15th will be paid a dividend of $1.32 per share. This represents a $5.28 annualized dividend and a dividend yield of 2.8%. This is a boost from Penske Automotive Group’s previous quarterly dividend of $1.26. The ex-dividend date of this dividend is Friday, August 15th. Penske Automotive Group’s payout ratio is currently 36.74%.

Penske Automotive Group declared that its board has initiated a stock repurchase plan on Wednesday, May 14th that permits the company to repurchase $250.00 million in outstanding shares. This repurchase authorization permits the company to reacquire up to 2.3% of its stock through open market purchases. Stock repurchase plans are typically an indication that the company’s leadership believes its shares are undervalued.

Insider Buying and Selling

In related news, EVP Shane M. Spradlin sold 3,158 shares of the company’s stock in a transaction dated Monday, June 9th. The stock was sold at an average price of $167.10, for a total value of $527,701.80. Following the completion of the sale, the executive vice president owned 36,152 shares in the company, valued at approximately $6,040,999.20. This represents a 8.03% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through this link. Also, Director Greg C. Smith sold 1,529 shares of the stock in a transaction that occurred on Tuesday, June 3rd. The shares were sold at an average price of $161.64, for a total transaction of $247,147.56. The disclosure for this sale can be found here. In the last ninety days, insiders have sold 84,748 shares of company stock worth $13,748,660. 51.70% of the stock is currently owned by company insiders.

Institutional Trading of Penske Automotive Group

Several hedge funds have recently added to or reduced their stakes in PAG. Sound Income Strategies LLC acquired a new stake in shares of Penske Automotive Group during the second quarter worth about $34,000. Acadian Asset Management LLC acquired a new position in shares of Penske Automotive Group during the 1st quarter worth about $42,000. UMB Bank n.a. grew its stake in Penske Automotive Group by 421.5% in the first quarter. UMB Bank n.a. now owns 339 shares of the company’s stock valued at $49,000 after purchasing an additional 274 shares in the last quarter. GAMMA Investing LLC increased its holdings in Penske Automotive Group by 51.9% during the first quarter. GAMMA Investing LLC now owns 398 shares of the company’s stock worth $57,000 after buying an additional 136 shares during the last quarter. Finally, Brooklyn Investment Group increased its stake in shares of Penske Automotive Group by 353.0% during the 1st quarter. Brooklyn Investment Group now owns 453 shares of the company’s stock worth $65,000 after purchasing an additional 353 shares during the last quarter. Institutional investors and hedge funds own 77.08% of the company’s stock.

Penske Automotive Group Company Profile

Penske Automotive Group, Inc, a diversified transportation services company, operates automotive and commercial truck dealerships worldwide. The company operates through four segments: Retail Automotive, Retail Commercial Truck, Other, and Non-Automotive Investments. It operates dealerships under franchise agreements with various automotive manufacturers and distributors.