HITE Hedge Asset Management LLC Acquires New Position in Penske Automotive Group, Inc. $PAG

Key Points

• HITE Hedge Asset Management LLC acquired 31,962 shares of Penske Automotive Group, Inc. for approximately $4.6 million during the first quarter, indicating growing institutional interest in the company.
• Penske Automotive Group recently declared an increase in its quarterly dividend to $1.32, reflecting a dividend yield of 2.9%, as well as announcing a stock repurchase program of $250 million.
• The company's recent earnings report showed EPS of $3.78, surpassing expectations, although revenue declined year-over-year, underscoring some operational challenges.

HITE Hedge Asset Management LLC purchased a new position in shares of Penske Automotive Group, Inc. (NYSE:PAG - Free Report) in the 1st quarter, according to the company in its most recent filing with the SEC. The institutional investor purchased 31,962 shares of the company's stock, valued at approximately $4,602,000.

Several other institutional investors and hedge funds also recently made changes to their positions in PAG. Nuveen LLC bought a new position in shares of Penske Automotive Group during the 1st quarter worth $10,004,000. Moran Wealth Management LLC grew its stake in shares of Penske Automotive Group by 65.4% during the 1st quarter. Moran Wealth Management LLC now owns 153,605 shares of the company's stock worth $22,116,000 after acquiring an additional 60,734 shares during the period. GAMMA Investing LLC grew its stake in shares of Penske Automotive Group by 21,771.8% during the 1st quarter. GAMMA Investing LLC now owns 57,304 shares of the company's stock worth $8,251,000 after acquiring an additional 57,042 shares during the period. Burgundy Asset Management Ltd. grew its stake in shares of Penske Automotive Group by 7.0% during the 1st quarter. Burgundy Asset Management Ltd. now owns 863,529 shares of the company's stock worth $124,331,000 after acquiring an additional 56,669 shares during the period. Finally, Millennium Management LLC grew its stake in shares of Penske Automotive Group by 43.9% during the 4th quarter. Millennium Management LLC now owns 128,283 shares of the company's stock worth $19,555,000 after acquiring an additional 39,113 shares during the period. Institutional investors own 77.08% of the company's stock.

Insider Transactions at Penske Automotive Group

In other Penske Automotive Group news, CEO Roger S. Penske sold 77,357 shares of the firm's stock in a transaction dated Tuesday, June 3rd. The stock was sold at an average price of $161.37, for a total value of $12,483,099.09. Following the sale, the chief executive officer owned 140,042 shares of the company's stock, valued at $22,598,577.54. This trade represents a 35.58% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available at this link. Also, EVP Shane M. Spradlin sold 3,158 shares of the firm's stock in a transaction dated Monday, June 9th. The shares were 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 directly owned 36,152 shares in the company, valued at approximately $6,040,999.20. The trade was a 8.03% decrease in their position. The disclosure for this sale can be found here. Over the last quarter, insiders have sold 84,748 shares of company stock worth $13,748,660. 52.40% of the stock is owned by insiders.

Analyst Upgrades and Downgrades

Several research analysts have commented on PAG shares. Morgan Stanley raised their target price on Penske Automotive Group from $180.00 to $190.00 and gave the stock an "overweight" rating in a research note on Thursday, August 14th. Stephens restated an "equal weight" rating and issued a $140.00 target price on shares of Penske Automotive Group in a research note on Wednesday, June 11th. JPMorgan Chase & Co. upgraded Penske Automotive Group from an "underweight" rating to a "neutral" rating and raised their target price for the stock from $155.00 to $175.00 in a research note on Tuesday, August 5th. Bank of America raised their target price on Penske Automotive Group from $190.00 to $205.00 and gave the stock a "buy" rating in a research note on Monday, June 16th. Finally, Citigroup raised their target price 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. Four investment analysts have rated the stock with a Buy rating and two have issued a Hold rating to the company's stock. According to data from MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and a consensus price target of $181.00.

Penske Automotive Group Price Performance

NYSE PAG traded up $6.1150 during trading hours on Friday, hitting $187.1050. The company had a trading volume of 237,765 shares, compared to its average volume of 241,496. The firm has a 50 day simple moving average of $175.89 and a 200 day simple moving average of $164.75. Penske Automotive Group, Inc. has a 52 week low of $134.05 and a 52 week high of $188.43. The firm has a market capitalization of $12.36 billion, a price-to-earnings ratio of 13.02 and a beta of 0.87. The company has a debt-to-equity ratio of 0.16, a quick ratio of 0.21 and a current ratio of 0.90.

Penske Automotive Group (NYSE:PAG - Get Free Report) last released its quarterly earnings results on Wednesday, July 30th. The company reported $3.78 earnings per share for the quarter, beating the consensus estimate 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 firm had revenue of $7.66 billion for the quarter, compared to analysts' expectations of $7.98 billion. During the same quarter last year, the firm posted $3.61 EPS. The company's revenue was down .4% compared to the same quarter last year. Equities research analysts expect that Penske Automotive Group, Inc. will post 13.86 earnings per share for the current year.

Penske Automotive Group announced that its board has authorized a stock repurchase plan on Wednesday, May 14th that allows the company to repurchase $250.00 million in outstanding shares. This repurchase authorization allows the company to reacquire up to 2.3% of its shares through open market purchases. Shares repurchase plans are often an indication that the company's leadership believes its stock is undervalued.

Penske Automotive Group Increases Dividend

The firm also recently declared a quarterly dividend, which will be paid on Wednesday, September 3rd. Shareholders of record on Friday, August 15th will be issued a $1.32 dividend. This represents a $5.28 annualized dividend and a dividend yield of 2.8%. The ex-dividend date of this dividend is Friday, August 15th. This is an increase from Penske Automotive Group's previous quarterly dividend of $1.26. Penske Automotive Group's payout ratio is 36.74%.

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.