Penske Automotive Group, Inc. $PAG Position Increased by Charles Schwab Investment Management Inc.

Key Points

• Charles Schwab Investment Management Inc. increased its stake in Penske Automotive Group by 1.3%, now holding 147,470 shares worth approximately $21.23 million.
• Penske Automotive Group recently announced a quarterly dividend increase to $1.32 per share, with a yield of 2.9%, and initiated a share repurchase program allowing for $250 million in buybacks.
• Analysts remain positive on Penske Automotive Group, with several firms raising their price targets, including Citigroup, which increased its target to $195.00 and maintained a "buy" rating.

Charles Schwab Investment Management Inc. increased its stake in shares of Penske Automotive Group, Inc. (NYSE:PAG - Free Report) by 1.3% in the first quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission (SEC). The fund owned 147,470 shares of the company's stock after buying an additional 1,891 shares during the quarter. Charles Schwab Investment Management Inc. owned about 0.22% of Penske Automotive Group worth $21,233,000 at the end of the most recent quarter.

Other large investors have also recently added to or reduced their stakes in the company. Vanguard Group Inc. boosted its holdings in shares of Penske Automotive Group by 0.3% during the first quarter. Vanguard Group Inc. now owns 2,004,832 shares of the company's stock valued at $288,656,000 after acquiring an additional 5,641 shares during the period. Renasant Bank acquired a new stake in shares of Penske Automotive Group in the 1st quarter worth about $246,000. New Age Alpha Advisors LLC lifted its position in Penske Automotive Group by 23.6% in the 1st quarter. New Age Alpha Advisors LLC now owns 19,620 shares of the company's stock valued at $2,825,000 after purchasing an additional 3,745 shares during the last quarter. PNC Financial Services Group Inc. boosted its stake in Penske Automotive Group by 7.0% during the 1st quarter. PNC Financial Services Group Inc. now owns 3,359 shares of the company's stock valued at $484,000 after purchasing an additional 221 shares during the period. Finally, US Bancorp DE boosted its stake in Penske Automotive Group by 24.2% during the 1st quarter. US Bancorp DE now owns 1,833 shares of the company's stock valued at $264,000 after purchasing an additional 357 shares during the period. 77.08% of the stock is owned by institutional investors and hedge funds.

Wall Street Analysts Forecast Growth

Several equities research analysts have commented on the stock. Morgan Stanley raised 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, August 14th. Bank of America raised their target price on Penske Automotive Group from $190.00 to $205.00 and gave the company a "buy" rating in a research report on Monday, June 16th. JPMorgan Chase & Co. raised Penske Automotive Group from an "underweight" rating to a "neutral" rating and lifted their target price for the company from $155.00 to $175.00 in a research note on Tuesday, August 5th. Citigroup increased their price target on Penske Automotive Group from $185.00 to $195.00 and gave the stock a "buy" rating in a research note on Monday, May 19th. Finally, Stephens reissued an "equal weight" rating and set a $140.00 price target on shares of Penske Automotive Group in a report on Wednesday, June 11th. Four analysts have rated the stock with a Buy rating and two have issued a Hold rating to the company. According to data from MarketBeat, the stock has an average rating of "Moderate Buy" and a consensus price target of $181.00.

Penske Automotive Group Price Performance

PAG traded up $6.1150 during trading on Friday, reaching $187.1050. The stock had a trading volume of 237,765 shares, compared to its average volume of 240,553. The firm has a market capitalization of $12.36 billion, a price-to-earnings ratio of 13.02 and a beta of 0.87. The company has a quick ratio of 0.21, a current ratio of 0.90 and a debt-to-equity ratio of 0.16. Penske Automotive Group, Inc. has a 1-year low of $134.05 and a 1-year high of $188.43. The stock has a 50 day moving average of $175.89 and a two-hundred day moving average of $164.78.

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

Penske Automotive Group Increases Dividend

The firm also recently disclosed 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 is a positive change 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 dividend yield of 2.8%. Penske Automotive Group's payout ratio is 36.74%.

Penske Automotive Group announced that its board has authorized a stock repurchase program on Wednesday, May 14th that authorizes the company to buyback $250.00 million in shares. This buyback authorization authorizes the company to repurchase up to 2.3% of its shares through open market purchases. Shares buyback programs are generally an indication that the company's leadership believes its stock is undervalued.

Insider Buying and Selling

In related news, EVP Shane M. Spradlin sold 3,158 shares of the firm'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 sale, the executive vice president directly owned 36,152 shares in the company, valued at approximately $6,040,999.20. This trade represents a 8.03% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at the SEC website. Also, Director Lisa Ann Davis sold 1,604 shares of Penske Automotive Group stock in a transaction that occurred on Monday, August 18th. The stock was sold at an average price of $180.74, for a total transaction of $289,906.96. Following the completion of the transaction, the director owned 1,529 shares in the company, valued at approximately $276,351.46. This trade represents a 51.20% decrease in their position. The disclosure for this sale can be found here. Over the last three months, insiders have sold 84,748 shares of company stock worth $13,748,660. 51.70% of the stock is owned by insiders.

About Penske Automotive Group

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.