BlackRock Inc. Takes Position in Penske Automotive Group, Inc. $PAG

Key Points

• BlackRock acquired 2.33 million shares of Penske Automotive Group in the second quarter, valued at approximately $417.5 million and representing a 3.55% stake. Institutional investors collectively own 77.08% of PAG.
• Penske Automotive reported quarterly EPS of $3.62, exceeding estimates of $3.42, while revenue rose 11.1% year over year to $8.51 billion. Analysts maintain a “Moderate Buy” consensus with an average price target of $208.50.
• The company raised its quarterly dividend to $1.44 per share, equivalent to an annualized $5.76 payout and a 2.6% yield. PAG shares opened at $219.59, near their 12-month high of $227.00.

BlackRock Inc. purchased a new position in Penske Automotive Group, Inc. (NYSE:PAG - Free Report) during the second quarter, according to the company in its most recent 13F filing with the SEC. The institutional investor purchased 2,333,144 shares of the company's stock, valued at approximately $417,516,000. BlackRock Inc. owned 3.55% of Penske Automotive Group at the end of the most recent reporting period.

Other hedge funds have also recently bought and sold shares of the company. Parallel Advisors LLC grew its holdings in Penske Automotive Group by 15.1% during the 1st quarter. Parallel Advisors LLC now owns 441 shares of the company's stock valued at $66,000 after buying an additional 58 shares during the last quarter. Bessemer Group Inc. increased its position in Penske Automotive Group by 8.5% during the first quarter. Bessemer Group Inc. now owns 830 shares of the company's stock worth $124,000 after purchasing an additional 65 shares during the last quarter. California State Teachers Retirement System raised its position in shares of Penske Automotive Group by 0.4% in the 2nd quarter. California State Teachers Retirement System now owns 18,434 shares of the company's stock worth $3,167,000 after buying an additional 65 shares during the period. Rothschild Investment LLC lifted its stake in shares of Penske Automotive Group by 37.5% in the 4th quarter. Rothschild Investment LLC now owns 242 shares of the company's stock valued at $38,000 after purchasing an additional 66 shares in the last quarter. Finally, Focus Partners Advisor Solutions LLC lifted its position in Penske Automotive Group by 2.7% during the fourth quarter. Focus Partners Advisor Solutions LLC now owns 2,630 shares of the company's stock valued at $416,000 after buying an additional 70 shares in the last quarter. 77.08% of the stock is owned by hedge funds and other institutional investors.

Analyst Upgrades and Downgrades

Several research analysts have recently weighed in on PAG shares. JPMorgan Chase & Co. upped their target price on shares of Penske Automotive Group from $170.00 to $215.00 and gave the company a "neutral" rating in a research note on Tuesday, August 4th. Stephens boosted their price target on Penske Automotive Group from $166.00 to $210.00 and gave the company an "equal weight" rating in a report on Monday, August 3rd. Morgan Stanley reaffirmed an "overweight" rating and set a $190.00 price objective on shares of Penske Automotive Group in a research report on Thursday, May 7th. Benchmark cut Penske Automotive Group from a "buy" rating to a "hold" rating in a research note on Wednesday, July 22nd. Finally, Bank of America raised their price target on shares of Penske Automotive Group from $200.00 to $238.00 and gave the company a "buy" rating in a research note on Thursday, July 9th. Five analysts have rated the stock with a Buy rating and five have given a Hold rating to the company's stock. Based on data from MarketBeat, Penske Automotive Group has an average rating of "Moderate Buy" and an average price target of $208.50.

Penske Automotive Group Price Performance

PAG opened at $219.59 on Wednesday. The firm has a market capitalization of $14.42 billion, a P/E ratio of 16.17, a PEG ratio of 2.90 and a beta of 0.84. The stock has a fifty day moving average of $201.67 and a 200-day moving average of $175.59. The company has a quick ratio of 0.21, a current ratio of 0.98 and a debt-to-equity ratio of 0.36. 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 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $3.42 by $0.20. Penske Automotive Group had a net margin of 2.81% and a return on equity of 14.78%. The business had revenue of $8.51 billion during the quarter, compared to analyst estimates of $7.98 billion. During the same period in the prior year, the firm earned $3.78 earnings per share. The firm's revenue was up 11.1% compared to the same quarter last year. Equities analysts forecast that Penske Automotive Group, Inc. will post 13.61 EPS for the current fiscal 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. The ex-dividend date is Friday, August 14th. This represents a $5.76 annualized dividend and a dividend yield of 2.6%. Penske Automotive Group's dividend payout ratio is currently 42.42%.

Insider Activity at Penske Automotive Group

In other Penske Automotive Group news, CFO Michelle Hulgrave sold 1,500 shares of the company'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 sale, the chief financial officer owned 17,596 shares of the company's stock, valued at $3,022,992.80. This represents a 7.86% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Corporate insiders own 52.90% of the company's stock.

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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