Aigen Investment Management LP Trims Stake in Penske Automotive Group, Inc. $PAG

Key Points

• Aigen Investment Management LP reduced its stake in Penske Automotive Group by 55.2% in the first quarter, holding 1,734 shares valued at $250,000 after selling 2,134 shares.
• In contrast, UMB Bank significantly increased its holdings by 421.5% during the same period, now owning 339 shares worth $49,000.
• Penske Automotive Group plans to buy back $250 million in shares, indicative of the board's belief that its stock is undervalued, while also announcing an increased quarterly dividend of $1.32.

Aigen Investment Management LP cut its stake in Penske Automotive Group, Inc. (NYSE:PAG - Free Report) by 55.2% in the first quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The institutional investor owned 1,734 shares of the company's stock after selling 2,134 shares during the period. Aigen Investment Management LP's holdings in Penske Automotive Group were worth $250,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

A number of other large investors have also made changes to their positions in the stock. State of Michigan Retirement System grew its position in shares of Penske Automotive Group by 2.3% in the first quarter. State of Michigan Retirement System now owns 4,500 shares of the company's stock valued at $648,000 after purchasing an additional 100 shares in the last quarter. Securian Asset Management Inc. grew its position in shares of Penske Automotive Group by 7.4% in the first quarter. Securian Asset Management Inc. now owns 1,447 shares of the company's stock valued at $208,000 after purchasing an additional 100 shares in the last quarter. Fifth Third Bancorp grew its position in shares of Penske Automotive Group by 31.0% in the first quarter. Fifth Third Bancorp now owns 528 shares of the company's stock valued at $76,000 after purchasing an additional 125 shares in the last quarter. Pacific Global Investment Management Co. grew its position in shares of Penske Automotive Group by 1.1% in the first quarter. Pacific Global Investment Management Co. now owns 11,953 shares of the company's stock valued at $1,721,000 after purchasing an additional 135 shares in the last quarter. Finally, GAMMA Investing LLC grew its position in shares of Penske Automotive Group by 51.9% in the first quarter. GAMMA Investing LLC now owns 398 shares of the company's stock valued at $57,000 after purchasing an additional 136 shares in the last quarter. 77.08% of the stock is currently owned by hedge funds and other institutional investors.

Insiders Place Their Bets

In other Penske Automotive Group news, EVP Shane M. Spradlin sold 3,158 shares of the business'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 owned 36,152 shares in the company, valued at $6,040,999.20. The trade was a 8.03% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available at this link. Also, CEO Roger S. Penske sold 77,357 shares of the firm's stock in a transaction on Tuesday, June 3rd. The shares were sold at an average price of $161.37, for a total value of $12,483,099.09. Following the completion of the sale, the chief executive officer owned 140,042 shares in the company, valued at approximately $22,598,577.54. This represents a 35.58% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold 82,044 shares of company stock worth $13,257,948 in the last 90 days. Corporate insiders own 52.40% of the company's stock.

Penske Automotive Group Stock Up 0.8%

Shares of NYSE PAG traded up $1.52 during mid-day trading on Tuesday, hitting $182.04. The company had a trading volume of 37,464 shares, compared to its average volume of 240,250. The company has a market capitalization of $12.02 billion, a PE ratio of 12.66 and a beta of 0.87. The company has a debt-to-equity ratio of 0.16, a current ratio of 0.90 and a quick ratio of 0.21. Penske Automotive Group, Inc. has a 1-year low of $134.05 and a 1-year high of $186.55. The business's 50-day simple moving average is $174.63 and its 200 day simple moving average is $164.31.

Penske Automotive Group (NYSE:PAG - Get Free Report) last announced its quarterly earnings data on Wednesday, July 30th. The company reported $3.78 earnings per share (EPS) 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 business had revenue of $7.66 billion for the quarter, compared to analysts' expectations of $7.98 billion. During the same period last year, the firm earned $3.61 earnings per share. The company's revenue for the quarter was down .4% compared to the same quarter last year. On average, analysts predict 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 buyback plan on Wednesday, May 14th that permits the company to repurchase $250.00 million in shares. This repurchase authorization permits the company to repurchase up to 2.3% of its shares through open market purchases. Shares repurchase plans are often a sign that the company's board believes its shares are undervalued.

Penske Automotive Group Increases Dividend

The company 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 dividend of $1.32 per share. This is a boost from Penske Automotive Group's previous quarterly dividend of $1.26. The ex-dividend date is Friday, August 15th. This represents a $5.28 annualized dividend and a yield of 2.9%. Penske Automotive Group's dividend payout ratio (DPR) is presently 36.74%.

Wall Street Analysts Forecast Growth

PAG has been the topic of a number of recent analyst reports. Bank of America upped their price objective on Penske Automotive Group from $190.00 to $205.00 and gave the company a "buy" rating in a report on Monday, June 16th. Wall Street Zen upgraded Penske Automotive Group from a "hold" rating to a "buy" rating in a report on Wednesday, April 23rd. Morgan Stanley boosted their price target 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. JPMorgan Chase & Co. raised shares of Penske Automotive Group from an "underweight" rating to a "neutral" rating and boosted their price target for the company from $155.00 to $175.00 in a research note on Tuesday, August 5th. Finally, Stephens reissued an "equal weight" rating and issued a $140.00 price target on shares of Penske Automotive Group in a research note on Wednesday, June 11th. Four equities research analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the stock. Based on data from MarketBeat.com, the company currently has an average rating of "Moderate Buy" and a consensus target price of $181.00.

Penske Automotive Group 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.