Bank of New York Mellon Corp Raises Stock Holdings in Penske Automotive Group, Inc. $PAG

Key Points

• Bank of New York Mellon increased its Penske Automotive Group stake by 3.5% in the first quarter, bringing its holdings to 388,977 shares valued at about $58.2 million.
• Penske Automotive reported better-than-expected quarterly results, posting EPS of $3.05 versus estimates of $2.91 and revenue of $7.86 billion versus $7.71 billion expected.
• The company raised its quarterly dividend to $1.44 per share, marking its 23rd consecutive increase, while recent reports also pointed to a potential take-private bid at $210 per share.

Bank of New York Mellon Corp raised its position in shares of Penske Automotive Group, Inc. (NYSE:PAG - Free Report) by 3.5% in the 1st quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The firm owned 388,977 shares of the company's stock after buying an additional 13,210 shares during the quarter. Bank of New York Mellon Corp owned about 0.59% of Penske Automotive Group worth $58,160,000 at the end of the most recent quarter.

A number of other hedge funds have also recently modified their holdings of PAG. Navalign LLC bought a new position in Penske Automotive Group during the 4th quarter valued at approximately $26,000. International Assets Investment Management LLC bought a new position in shares of Penske Automotive Group during the fourth quarter valued at $30,000. Rothschild Investment LLC increased its holdings in shares of 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 in the last quarter. Acadian Asset Management LLC purchased a new position in shares of Penske Automotive Group in the 1st quarter worth about $42,000. Finally, Global Retirement Partners LLC raised its position in shares of Penske Automotive Group by 186.6% in the 4th quarter. Global Retirement Partners LLC now owns 321 shares of the company's stock worth $51,000 after purchasing an additional 209 shares during the last quarter. Institutional investors own 77.08% of the company's stock.

Insider Activity

In related news, CFO Michelle Hulgrave sold 1,500 shares of the business's stock in a transaction that occurred on Tuesday, June 2nd. The stock was sold at an average price of $171.80, for a total transaction 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. The trade was a 7.86% decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, Director Greg C. Smith sold 1,488 shares of the stock in a transaction that occurred on Monday, May 18th. The stock was sold at an average price of $160.02, for a total transaction of $238,109.76. Additional details regarding this sale are available in the official SEC disclosure. 52.90% of the stock is owned by company insiders.

Penske Automotive Group Stock Performance

Shares of PAG opened at $215.71 on Friday. The company has a debt-to-equity ratio of 0.39, a current ratio of 0.96 and a quick ratio of 0.22. Penske Automotive Group, Inc. has a one year low of $140.12 and a one year high of $219.09. The firm has a market capitalization of $14.18 billion, a P/E ratio of 16.10, a PEG ratio of 2.78 and a beta of 0.87. The business has a fifty day moving average of $179.65 and a 200 day moving average of $166.53.

Penske Automotive Group (NYSE:PAG - Get Free Report) last released its quarterly earnings results on Wednesday, April 29th. The company reported $3.05 EPS for the quarter, beating the consensus estimate of $2.91 by $0.14. The firm had revenue of $7.86 billion during the quarter, compared to analyst estimates of $7.71 billion. Penske Automotive Group had a net margin of 2.85% and a return on equity of 15.13%. The business's revenue for the quarter was down 1.1% compared to the same quarter last year. During the same quarter in the prior year, the firm earned $3.66 EPS. As a group, sell-side analysts anticipate that Penske Automotive Group, Inc. will post 13.43 EPS for the current year.

Penske Automotive Group Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Tuesday, September 1st. Stockholders of record on Friday, August 14th will be paid a $1.44 dividend. This represents a $5.76 annualized dividend and a dividend yield of 2.7%. This is an increase from Penske Automotive Group's previous quarterly dividend of $1.42. The ex-dividend date of this dividend is Friday, August 14th. Penske Automotive Group's dividend payout ratio is 42.39%.

Wall Street Analyst Weigh In

A number of analysts have weighed in on the stock. Stephens raised their price objective on shares of Penske Automotive Group from $155.00 to $160.00 and gave the company an "equal weight" rating in a research note on Monday, May 4th. UBS Group set a $190.00 target price on shares of Penske Automotive Group in a research note on Friday, July 10th. Citigroup lowered shares of Penske Automotive Group from a "buy" rating to a "neutral" rating and boosted their price objective for the stock from $199.00 to $210.00 in a report on Thursday. Barclays boosted their price target on Penske Automotive Group from $190.00 to $220.00 and gave the stock an "overweight" rating in a research note on Wednesday, July 15th. Finally, Bank of America lifted their price objective on Penske Automotive Group from $200.00 to $238.00 and gave the stock a "buy" rating in a report on Thursday, July 9th. Five equities research analysts have rated the stock with a Buy rating and five have assigned a Hold rating to the company. According to data from MarketBeat.com, the stock has an average rating of "Moderate Buy" and a consensus target price of $196.00.

More Penske Automotive Group News

Here are the key news stories impacting Penske Automotive Group this week:

• Positive Sentiment: Penske Automotive confirmed receipt of an unsolicited, preliminary, non-binding proposal from Penske Corporation and Mitsui to take the company private at $210 per share, a premium to the recent trading level and a signal that a buyout could be near. Article Title
• Positive Sentiment: The company announced its 23rd consecutive quarterly dividend increase, lifting the payout to $1.44 per share from $1.42, which supports the stock’s income appeal and reflects continued cash generation. Article Title
• Positive Sentiment: Several news reports highlighted the potential buyout as a roughly $3.8 billion to $4 billion deal, reinforcing speculation that shareholders could receive a takeover premium. Article Title
• Neutral Sentiment: Citigroup downgraded PAG to “neutral” from “buy,” but raised its price target to $210, which is still close to the buyout talk and suggests limited near-term upside from current levels. Article Title

Penske Automotive Group Company Profile

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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