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

Other large investors have also modified their holdings of the company. Cambridge Investment Research Advisors Inc. increased its stake in shares of Penske Automotive Group by 9.6% during the first quarter. Cambridge Investment Research Advisors Inc. now owns 3,367 shares of the company's stock worth $485,000 after purchasing an additional 295 shares in the last quarter. Two Sigma Investments LP increased its stake in shares of Penske Automotive Group by 21.0% during the fourth quarter. Two Sigma Investments LP now owns 10,253 shares of the company's stock worth $1,563,000 after purchasing an additional 1,777 shares in the last quarter. Teacher Retirement System of Texas increased its stake in shares of Penske Automotive Group by 15.8% during the first quarter. Teacher Retirement System of Texas now owns 12,006 shares of the company's stock worth $1,729,000 after purchasing an additional 1,639 shares in the last quarter. KBC Group NV increased its stake in shares of Penske Automotive Group by 33.4% during the first quarter. KBC Group NV now owns 999 shares of the company's stock worth $144,000 after purchasing an additional 250 shares in the last quarter. Finally, SG Americas Securities LLC purchased a new stake in Penske Automotive Group during the 1st quarter valued at about $648,000. Institutional investors and hedge funds own 77.08% of the company's stock.

Penske Automotive Group Trading Up 3.4%

Shares of NYSE:PAG traded up $6.1150 during mid-day trading on Friday, reaching $187.1050. 237,765 shares of the company were exchanged, compared to its average volume of 240,974. 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 firm has a market cap of $12.36 billion, a price-to-earnings ratio of 13.02 and a beta of 0.87. The firm's 50-day simple moving average is $175.46 and its 200 day simple moving average is $164.69. Penske Automotive Group, Inc. has a 1 year low of $134.05 and a 1 year high of $188.43.

Penske Automotive Group (NYSE:PAG - Get Free Report) last posted its quarterly earnings data on Wednesday, July 30th. The company reported $3.78 earnings per share for the quarter, topping analysts' consensus estimates of $3.56 by $0.22. The firm had revenue of $7.66 billion during the quarter, compared to analysts' expectations of $7.98 billion. Penske Automotive Group had a net margin of 3.13% and a return on equity of 17.43%. The firm's quarterly revenue was down .4% on a year-over-year basis. During the same quarter last year, the company posted $3.61 EPS. Equities research analysts forecast that Penske Automotive Group, Inc. will post 13.86 EPS for the current year.

Penske Automotive Group declared that its Board of Directors has approved a stock buyback plan on Wednesday, May 14th that allows the company to repurchase $250.00 million in shares. This repurchase authorization allows the company to reacquire up to 2.3% of its shares through open market purchases. Shares repurchase plans are generally a sign that the company's leadership believes its stock is undervalued.

Penske Automotive Group Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Wednesday, September 3rd. Investors of record on Friday, August 15th will be given a dividend of $1.32 per share. This represents a $5.28 dividend on an annualized basis 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 dividend payout ratio is 36.74%.

Insider Buying and Selling

In other Penske Automotive Group news, CFO Michelle Hulgrave sold 1,100 shares of the firm's stock in a transaction that occurred on Tuesday, August 19th. The shares were sold at an average price of $182.55, for a total value of $200,805.00. Following the completion of the transaction, the chief financial officer owned 18,922 shares of the company's stock, valued at $3,454,211.10. This trade represents a 5.49% decrease in their position. The sale was disclosed in a 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 that occurred on Monday, June 9th. The shares were sold at an average price of $167.10, for a total transaction of $527,701.80. Following the completion of the transaction, the executive vice president directly owned 36,152 shares of the company's stock, valued at $6,040,999.20. This represents a 8.03% decrease in their position. The disclosure for this sale can be found here. Insiders have sold a total of 84,748 shares of company stock worth $13,748,660 over the last three months. 51.70% of the stock is owned by insiders.

Analyst Upgrades and Downgrades

Several analysts recently issued reports on the stock. Bank of America upped their price objective 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. Citigroup upped their price objective on shares of Penske Automotive Group from $185.00 to $195.00 and gave the company a "buy" rating in a research note on Monday, May 19th. Stephens reaffirmed an "equal weight" rating and set a $140.00 price objective on shares of Penske Automotive Group in a research note on Wednesday, June 11th. Morgan Stanley upped their price objective 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. Finally, JPMorgan Chase & Co. raised shares of Penske Automotive Group from an "underweight" rating to a "neutral" rating and upped their price objective for the company from $155.00 to $175.00 in a research note on Tuesday, August 5th. Four investment analysts have rated the stock with a Buy rating and two have issued a Hold rating to the stock. Based on data from MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and an average price target of $181.00.

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.