Cubist Systematic Strategies LLC Increases Stake in Penske Automotive Group, Inc. $PAG

Key Points

• Cubist Systematic Strategies LLC significantly increased its holdings in Penske Automotive Group, acquiring an additional 54,970 shares, bringing its total ownership to 74,062 shares, valued at approximately $10.66 million.
• Penske Automotive Group reported earnings per share of $3.78 for the last quarter, exceeding analysts' expectations, despite a revenue decline of 0.4% year-over-year.
• The company has increased its quarterly dividend from $1.26 to $1.32 per share, indicating strong financial health, and announced a share repurchase plan allowing buybacks of up to $250 million.

Cubist Systematic Strategies LLC lifted its position in Penske Automotive Group, Inc. (NYSE:PAG - Free Report) by 287.9% during the 1st quarter, according to the company in its most recent Form 13F filing with the SEC. The firm owned 74,062 shares of the company's stock after purchasing an additional 54,970 shares during the quarter. Cubist Systematic Strategies LLC owned about 0.11% of Penske Automotive Group worth $10,663,000 at the end of the most recent quarter.

Other institutional investors have also recently made changes to their positions in the company. Cambridge Investment Research Advisors Inc. increased its holdings in shares of Penske Automotive Group by 9.6% in the first quarter. Cambridge Investment Research Advisors Inc. now owns 3,367 shares of the company's stock worth $485,000 after purchasing an additional 295 shares during the period. Two Sigma Investments LP increased its holdings in shares of Penske Automotive Group by 21.0% in the fourth quarter. Two Sigma Investments LP now owns 10,253 shares of the company's stock worth $1,563,000 after purchasing an additional 1,777 shares during the period. Teacher Retirement System of Texas increased its holdings in shares of Penske Automotive Group by 15.8% in the first quarter. Teacher Retirement System of Texas now owns 12,006 shares of the company's stock worth $1,729,000 after purchasing an additional 1,639 shares during the period. KBC Group NV increased its holdings in shares of Penske Automotive Group by 33.4% in the first quarter. KBC Group NV now owns 999 shares of the company's stock worth $144,000 after purchasing an additional 250 shares during the period. Finally, SG Americas Securities LLC bought a new position in shares of Penske Automotive Group in the first quarter worth $648,000. Institutional investors own 77.08% of the company's stock.

Insider Buying and Selling at Penske Automotive Group

In other Penske Automotive Group news, EVP Shane M. Spradlin sold 3,158 shares of the business's stock in a transaction dated Monday, June 9th. The shares were sold at an average price of $167.10, for a total value of $527,701.80. Following the transaction, the executive vice president owned 36,152 shares in the company, valued at approximately $6,040,999.20. The trade was a 8.03% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, CFO Michelle Hulgrave sold 1,100 shares of the business's stock in a transaction dated Tuesday, August 19th. The shares were sold at an average price of $182.55, for a total transaction of $200,805.00. Following the completion of the transaction, the chief financial officer owned 18,922 shares in the company, valued at $3,454,211.10. The trade was a 5.49% decrease in their position. The disclosure for this sale can be found here. Over the last quarter, insiders have sold 5,862 shares of company stock worth $1,018,414. 51.70% of the stock is currently owned by company insiders.

Penske Automotive Group Trading Up 0.4%

NYSE:PAG traded up $0.77 during trading hours on Friday, reaching $187.35. The company's stock had a trading volume of 160,253 shares, compared to its average volume of 179,128. The firm has a market capitalization of $12.37 billion, a price-to-earnings ratio of 13.04 and a beta of 0.89. The firm has a 50-day simple moving average of $178.51 and a 200-day simple moving average of $165.94. Penske Automotive Group, Inc. has a 1 year low of $134.05 and a 1 year high of $189.51. The company has a debt-to-equity ratio of 0.16, a quick ratio of 0.21 and a current ratio of 0.90.

Penske Automotive Group (NYSE:PAG - Get Free Report) last issued 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 analysts' expectations of $7.98 billion. Penske Automotive Group had a net margin of 3.13% and a return on equity of 17.43%. The firm's revenue was down .4% compared to the same quarter last year. During the same quarter last year, the company earned $3.61 EPS. Research analysts expect that Penske Automotive Group, Inc. will post 13.86 EPS for the current fiscal year.

Penske Automotive Group declared that its board has initiated a share repurchase plan on Wednesday, May 14th that permits the company to repurchase $250.00 million in outstanding shares. This repurchase authorization permits the company to buy up to 2.3% of its stock through open market purchases. Stock repurchase plans are typically a sign that the company's management believes its shares are undervalued.

Penske Automotive Group Increases Dividend

The company also recently disclosed a quarterly dividend, which was paid on Wednesday, September 3rd. Shareholders of record on Friday, August 15th were given a $1.32 dividend. The ex-dividend date was Friday, August 15th. This is a positive change from Penske Automotive Group's previous quarterly dividend of $1.26. This represents a $5.28 dividend on an annualized basis and a dividend yield of 2.8%. Penske Automotive Group's dividend payout ratio is presently 36.74%.

Wall Street Analyst Weigh In

A number of research firms have recently issued reports on PAG. Bank of America lifted their price objective on shares of Penske Automotive Group from $190.00 to $205.00 and gave the stock a "buy" rating in a report on Monday, June 16th. Morgan Stanley lifted their price objective on shares of Penske Automotive Group from $180.00 to $190.00 and gave the stock an "overweight" rating in a report on Thursday, August 14th. JPMorgan Chase & Co. raised shares of Penske Automotive Group from an "underweight" rating to a "neutral" rating and lifted their price objective for the stock from $155.00 to $175.00 in a report on Tuesday, August 5th. Citigroup lifted their price objective on shares of Penske Automotive Group from $185.00 to $195.00 and gave the stock a "buy" rating in a report on Monday, May 19th. Finally, Stephens reaffirmed an "equal weight" rating and set a $140.00 price objective on shares of Penske Automotive Group in a report on Wednesday, June 11th. Four investment analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the company. According to MarketBeat.com, Penske Automotive Group has an average rating of "Moderate Buy" and a consensus target price of $181.00.

Penske Automotive Group Company 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.