Penske Automotive Group, Inc. (NYSE:PAG) Given Average Rating of "Moderate Buy" by Brokerages

Key Points

• Analyst sentiment is moderately bullish: Five of 10 analysts rate Penske Automotive Group a buy and five recommend holding the stock, with an average 12-month price target of $211.14.
• Institutional ownership is substantial: Hedge funds and other institutional investors own 77.08% of PAG, with major new or expanded positions from BlackRock, Dimensional Fund Advisors, and others.
• Quarterly results exceeded expectations: The company reported $3.62 in earnings per share and $8.51 billion in revenue, beating consensus estimates, while raising its quarterly dividend to $1.44, or $5.76 annually.

Shares of Penske Automotive Group, Inc. (NYSE:PAG - Get Free Report) have received an average rating of "Moderate Buy" from the ten analysts that are currently covering the company, MarketBeat reports. Five investment analysts have rated the stock with a hold recommendation and five have issued a buy recommendation on the company. The average 1 year target price among brokerages that have issued a report on the stock in the last year is $211.1429.

PAG has been the subject of a number of analyst reports. UBS Group set a $190.00 price target on Penske Automotive Group in a report on Friday, July 10th. JPMorgan Chase & Co. raised their price objective on Penske Automotive Group from $170.00 to $215.00 and gave the company a "neutral" rating in a report on Tuesday, August 4th. Benchmark cut Penske Automotive Group from a "buy" rating to a "hold" rating in a research report on Wednesday, July 22nd. Stephens boosted their price objective on Penske Automotive Group from $166.00 to $210.00 and gave the company an "equal weight" rating in a research report on Monday, August 3rd. Finally, Weiss Ratings raised Penske Automotive Group from a "buy (b-)" rating to a "buy (b)" rating in a research note on Friday, September 11th.

Hedge Funds Weigh In On Penske Automotive Group

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. BlackRock Inc. purchased a new stake in shares of Penske Automotive Group during the second quarter worth about $417,516,000. Dimensional Fund Advisors LP boosted its holdings in Penske Automotive Group by 11.9% in the 1st quarter. Dimensional Fund Advisors LP now owns 1,447,910 shares of the company's stock worth $216,489,000 after buying an additional 154,443 shares during the last quarter. Diamant Asset Management Inc. boosted its holdings in Penske Automotive Group by 14,852.0% in the 1st quarter. Diamant Asset Management Inc. now owns 884,411 shares of the company's stock worth $132,237,000 after buying an additional 878,496 shares during the last quarter. Bank of America Corp DE purchased a new stake in Penske Automotive Group during the 2nd quarter worth approximately $79,065,000. Finally, Bank of New York Mellon Corp purchased a new stake in Penske Automotive Group during the 2nd quarter worth approximately $67,822,000. 77.08% of the stock is owned by hedge funds and other institutional investors.

Penske Automotive Group Stock Down 0.9%

PAG stock opened at $210.17 on Wednesday. Penske Automotive Group has a one year low of $140.12 and a one year high of $227.00. The company has a debt-to-equity ratio of 0.36, a quick ratio of 0.21 and a current ratio of 0.98. The firm's fifty day moving average is $215.38 and its 200 day moving average is $182.89. The firm has a market cap of $13.80 billion, a PE ratio of 15.48 and a beta of 0.84.

Penske Automotive Group (NYSE:PAG - Get Free Report) last issued its quarterly earnings data on Wednesday, July 29th. The company reported $3.62 earnings per share for the quarter, topping analysts' consensus estimates of $3.42 by $0.20. Penske Automotive Group had a net margin of 2.81% and a return on equity of 14.78%. The business had revenue of $8.51 billion during the quarter, compared to the consensus estimate of $7.98 billion. During the same quarter in the prior year, the firm posted $3.78 earnings per share. The company's revenue was up 11.1% compared to the same quarter last year. On average, research analysts forecast that Penske Automotive Group will post 13.66 EPS for the current year.

Penske Automotive Group Increases Dividend

The business also recently declared a quarterly dividend, which was paid on Tuesday, September 1st. Investors of record on Friday, August 14th were issued a $1.44 dividend. This represents a $5.76 annualized dividend and a yield of 2.7%. The ex-dividend date of this dividend was Friday, August 14th. This is a boost from Penske Automotive Group's previous quarterly dividend of $1.42. Penske Automotive Group's payout ratio is presently 42.42%.

Penske Automotive Group Company Profile

Penske Automotive Group, Inc NYSE: PAG is a diversified international transportation services company that operates automotive and commercial vehicle dealerships, as well as businesses serving the truck leasing and transportation industries. Its automotive retail operations sell new and used vehicles from a broad range of manufacturers and provide related services, including vehicle financing and insurance products, parts, maintenance and repair.

The company operates automotive dealerships in the United States, the United Kingdom, Australia, Germany and Italy.

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