Avantax Advisory Services Inc. Takes Position in Penske Automotive Group, Inc. (NYSE:PAG)

Key Points

• Avantax Advisory Services Inc. has made a new investment of $247,000 in Penske Automotive Group, Inc., acquiring 1,717 shares during the first quarter.
• Analysts have recently set new price targets for Penske Automotive Group, with Bank of America raising theirs from $190.00 to $205.00 and Citigroup from $185.00 to $195.00, reflecting a generally positive outlook.
• Penske Automotive Group is increasing its quarterly dividend from $1.26 to $1.32 per share, indicating a strong financial position with an annualized yield of 3.0%.

Avantax Advisory Services Inc. purchased a new stake in shares of Penske Automotive Group, Inc. (NYSE:PAG - Free Report) in the first quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The fund purchased 1,717 shares of the company's stock, valued at approximately $247,000.

A number of other institutional investors have also recently added to or reduced their stakes in the company. Oak Thistle LLC purchased a new stake in shares of Penske Automotive Group in the first quarter worth about $1,747,000. Universal Beteiligungs und Servicegesellschaft mbH purchased a new stake in shares of Penske Automotive Group in the first quarter worth about $1,916,000. Whittier Trust Co. of Nevada Inc. boosted its position in shares of Penske Automotive Group by 508.4% in the first quarter. Whittier Trust Co. of Nevada Inc. now owns 1,600 shares of the company's stock worth $230,000 after buying an additional 1,337 shares during the period. Securian Asset Management Inc. boosted 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 worth $208,000 after buying an additional 100 shares during the period. Finally, Applied Capital LLC FL boosted its position in shares of Penske Automotive Group by 9.9% in the first quarter. Applied Capital LLC FL now owns 23,749 shares of the company's stock worth $3,419,000 after buying an additional 2,149 shares during the period. Hedge funds and other institutional investors own 77.08% of the company's stock.

Insider Transactions at Penske Automotive Group

In related news, CEO Roger S. Penske sold 77,357 shares of the firm's stock in a transaction that occurred on 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 directly owned 140,042 shares in the company, 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 Securities & Exchange Commission, which is available through this hyperlink. Also, Director Greg C. Smith sold 1,529 shares of the firm's stock in a transaction that occurred on Tuesday, June 3rd. The shares were sold at an average price of $161.64, for a total value of $247,147.56. The disclosure for this sale can be found here. In the last ninety days, insiders have sold 82,044 shares of company stock worth $13,257,948. 52.40% of the stock is currently owned by company insiders.

Analyst Ratings Changes

Several equities research analysts have recently weighed in on PAG shares. Wall Street Zen raised Penske Automotive Group from a "hold" rating to a "buy" rating in a research report on Wednesday, April 23rd. Bank of America raised their price objective on Penske Automotive Group from $190.00 to $205.00 and gave the company a "buy" rating in a research note on Monday, June 16th. JPMorgan Chase & Co. upgraded Penske Automotive Group from an "underweight" rating to a "neutral" rating and raised their price objective for the company from $155.00 to $175.00 in a research note on Tuesday, August 5th. 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. Finally, Citigroup upped their target price 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. Two equities research analysts have rated the stock with a hold rating and five have issued a buy rating to the company's stock. According to MarketBeat, the company currently has a consensus rating of "Moderate Buy" and a consensus target price of $179.00.

Penske Automotive Group Stock Performance

NYSE:PAG traded up $4.62 during trading hours on Tuesday, reaching $180.71. 144,951 shares of the stock were exchanged, compared to its average volume of 241,756. The company has a quick ratio of 0.21, a current ratio of 0.90 and a debt-to-equity ratio of 0.16. The firm has a 50 day simple moving average of $172.83 and a 200-day simple moving average of $163.74. Penske Automotive Group, Inc. has a 52 week low of $134.05 and a 52 week high of $186.33. The stock has a market capitalization of $11.93 billion, a P/E ratio of 12.58 and a beta of 0.87.

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

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

Penske Automotive Group Increases Dividend

The business also recently declared a quarterly dividend, which will be paid on Wednesday, September 3rd. Stockholders 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 2.9%. The ex-dividend date is Friday, August 15th. This is a positive change from Penske Automotive Group's previous quarterly dividend of $1.26. Penske Automotive Group's payout ratio is currently 35.07%.

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.