Bank of America Corp DE Acquires 19,850 Shares of Penske Automotive Group, Inc. $PAG

Key Points

• Bank of America increased its Penske Automotive Group stake by 4.5% in the first quarter, adding 19,850 shares to own 463,784 shares valued at approximately $69.3 million. Institutional investors collectively own 77.08% of PAG.
• Penske Automotive reported quarterly earnings of $3.62 per share, exceeding estimates by $0.20, while revenue rose 11.1% year over year to $8.51 billion. The company also raised its quarterly dividend to $1.44 per share, producing a 2.7% yield.
• Analyst sentiment remains moderately bullish, with a consensus target price of $207.88 and a “Moderate Buy” rating. However, company insiders recently sold shares, including the CFO’s $257,700 transaction, while insiders retain a 52.90% ownership stake.

Bank of America Corp DE raised its stake in shares of Penske Automotive Group, Inc. (NYSE:PAG - Free Report) by 4.5% during the first quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The firm owned 463,784 shares of the company's stock after purchasing an additional 19,850 shares during the period. Bank of America Corp DE owned 0.71% of Penske Automotive Group worth $69,345,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

Several other institutional investors have also modified their holdings of PAG. Navalign LLC bought a new stake in Penske Automotive Group in the fourth quarter worth $26,000. International Assets Investment Management LLC bought a new position in Penske Automotive Group during the fourth quarter valued at $30,000. Rothschild Investment LLC increased its position in Penske Automotive Group by 37.5% during the fourth quarter. Rothschild Investment LLC now owns 242 shares of the company's stock valued at $38,000 after acquiring an additional 66 shares during the last quarter. Acadian Asset Management LLC purchased a new stake in shares of Penske Automotive Group in the first quarter valued at $42,000. Finally, Global Retirement Partners LLC raised its stake in shares of Penske Automotive Group by 186.6% in the fourth quarter. Global Retirement Partners LLC now owns 321 shares of the company's stock valued at $51,000 after acquiring an additional 209 shares during the period. 77.08% of the stock is owned by institutional investors.

Insider Activity at Penske Automotive Group

In related news, Director Greg C. Smith sold 1,488 shares of the business's stock in a transaction that occurred on Monday, May 18th. The stock was sold at an average price of $160.02, for a total value of $238,109.76. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this hyperlink. Also, CFO Michelle Hulgrave sold 1,500 shares of the stock in a transaction that occurred on Tuesday, June 2nd. The stock was sold at an average price of $171.80, for a total value of $257,700.00. Following the completion of the transaction, the chief financial officer directly owned 17,596 shares in the company, valued at approximately $3,022,992.80. This trade represents a 7.86% decrease in their position. The SEC filing for this sale provides additional information. Insiders own 52.90% of the company's stock.

Penske Automotive Group Stock Down 0.0%

Shares of PAG opened at $216.31 on Tuesday. The firm has a fifty day moving average price of $192.55 and a 200-day moving average price of $171.13. The company has a current ratio of 0.98, a quick ratio of 0.21 and a debt-to-equity ratio of 0.36. The firm has a market capitalization of $14.20 billion, a P/E ratio of 15.93, a P/E/G ratio of 2.88 and a beta of 0.84. Penske Automotive Group, Inc. has a 12-month low of $140.12 and a 12-month high of $227.00.

Penske Automotive Group (NYSE:PAG - Get Free Report) last posted its quarterly earnings results on Wednesday, July 29th. The company reported $3.62 EPS for the quarter, topping the consensus estimate of $3.42 by $0.20. The company had revenue of $8.51 billion for the quarter, compared to the consensus estimate of $7.98 billion. Penske Automotive Group had a net margin of 2.81% and a return on equity of 14.78%. The firm's revenue was up 11.1% compared to the same quarter last year. During the same quarter last year, the firm posted $3.78 EPS. Equities research analysts expect that Penske Automotive Group, Inc. will post 13.58 earnings per share for the current year.

Penske Automotive Group Increases Dividend

The business also recently declared a quarterly dividend, which will be paid on Tuesday, September 1st. Stockholders of record on Friday, August 14th will be paid a dividend of $1.44 per share. This is a boost from Penske Automotive Group's previous quarterly dividend of $1.42. This represents a $5.76 annualized dividend and a dividend yield of 2.7%. The ex-dividend date of this dividend is Friday, August 14th. Penske Automotive Group's payout ratio is presently 41.83%.

Wall Street Analyst Weigh In

Several research firms have recently issued reports on PAG. JPMorgan Chase & Co. raised their target price on shares of Penske Automotive Group from $170.00 to $215.00 and gave the stock a "neutral" rating in a report on Tuesday, August 4th. Citigroup downgraded shares of Penske Automotive Group from a "buy" rating to a "neutral" rating and upped their price target for the company from $199.00 to $210.00 in a report on Thursday, July 23rd. Morgan Stanley reissued an "overweight" rating and issued a $190.00 price objective on shares of Penske Automotive Group in a research report on Thursday, May 7th. Bank of America raised their price objective on shares of Penske Automotive Group from $200.00 to $238.00 and gave the stock a "buy" rating in a research note on Thursday, July 9th. Finally, UBS Group set a $190.00 target price on Penske Automotive Group in a research report on Friday, July 10th. Five equities research analysts have rated the stock with a Buy rating and five have issued a Hold rating to the stock. According to MarketBeat, the stock has a consensus rating of "Moderate Buy" and a consensus target price of $207.88.

About Penske Automotive Group

Penske Automotive Group, Inc NYSE: PAG, headquartered in Bloomfield Township, Michigan, is an international transportation services company primarily focused on automotive and commercial truck dealerships. The company retails new and pre-owned vehicles across a broad spectrum of brands, while offering parts, maintenance, collision repair and reconditioning services. In addition, Penske provides financing and insurance products through its integrated finance and insurance operations, supporting both retail customers and commercial clients.

Formed in 1990 as United Auto Group and publicly traded since 1999, Penske Automotive Group has grown through organic expansion and strategic acquisitions to establish a network of dealerships and service centers across the United States and Europe.

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