Cubist Systematic Strategies LLC Boosts 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 holdings in shares of Penske Automotive Group, Inc. (NYSE:PAG - Free Report) by 287.9% during the 1st quarter, according to its most recent disclosure with the Securities & Exchange Commission. The fund 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 as of its most recent SEC filing.

Several other hedge funds have also made changes to their positions in the business. Martingale Asset Management L P boosted its holdings in shares of Penske Automotive Group by 3.7% during the first quarter. Martingale Asset Management L P now owns 1,750 shares of the company's stock worth $252,000 after purchasing an additional 63 shares during the last quarter. State of Michigan Retirement System boosted its holdings in shares of Penske Automotive Group by 2.3% during the first quarter. State of Michigan Retirement System now owns 4,500 shares of the company's stock worth $648,000 after purchasing an additional 100 shares during the last quarter. Securian Asset Management Inc. boosted its holdings in shares of Penske Automotive Group by 7.4% during the first quarter. Securian Asset Management Inc. now owns 1,447 shares of the company's stock worth $208,000 after purchasing an additional 100 shares during the last quarter. Fifth Third Bancorp boosted its holdings in shares of Penske Automotive Group by 31.0% during the first quarter. Fifth Third Bancorp now owns 528 shares of the company's stock worth $76,000 after purchasing an additional 125 shares during the last quarter. Finally, Pacific Global Investment Management Co. boosted its holdings in shares of Penske Automotive Group by 1.1% during the first quarter. Pacific Global Investment Management Co. now owns 11,953 shares of the company's stock worth $1,721,000 after purchasing an additional 135 shares during the last quarter. Institutional investors and hedge funds own 77.08% of the company's stock.

Penske Automotive Group Trading Up 0.4%

Shares of NYSE:PAG traded up $0.77 during trading on Friday, reaching $187.35. 160,253 shares of the stock were exchanged, compared to its average volume of 180,747. Penske Automotive Group, Inc. has a 12-month low of $134.05 and a 12-month high of $189.51. The firm has a market cap of $12.37 billion, a price-to-earnings ratio of 13.04 and a beta of 0.89. The company has a debt-to-equity ratio of 0.16, a quick ratio of 0.21 and a current ratio of 0.90. The firm's 50-day moving average price is $178.51 and its 200 day moving average price is $165.90.

Penske Automotive Group (NYSE:PAG - Get Free Report) last released its quarterly earnings data on Wednesday, July 30th. The company reported $3.78 EPS for the quarter, beating the consensus estimate of $3.56 by $0.22. Penske Automotive Group had a return on equity of 17.43% and a net margin of 3.13%.The company had revenue of $7.66 billion for the quarter, compared to analyst estimates of $7.98 billion. During the same period last year, the company posted $3.61 earnings per share. The firm's revenue was down .4% compared to the same quarter last year. On average, sell-side analysts anticipate that Penske Automotive Group, Inc. will post 13.86 earnings per share for the current fiscal year.

Penske Automotive Group Increases Dividend

The business 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. This represents a $5.28 annualized dividend and a yield of 2.8%. This is a boost from Penske Automotive Group's previous quarterly dividend of $1.26. The ex-dividend date of this dividend was Friday, August 15th. Penske Automotive Group's dividend payout ratio is 36.74%.

Penske Automotive Group declared that its board has authorized a share repurchase plan on Wednesday, May 14th that permits the company to repurchase $250.00 million in shares. This repurchase authorization permits the company to purchase up to 2.3% of its shares through open market purchases. Shares repurchase plans are often an indication that the company's board of directors believes its stock is undervalued.

Analysts Set New Price Targets

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

Insider Buying and Selling at Penske Automotive Group

In other Penske Automotive Group news, CFO Michelle Hulgrave sold 1,100 shares of the firm's stock in a transaction dated Tuesday, August 19th. The stock was sold at an average price of $182.55, for a total value of $200,805.00. Following the transaction, the chief financial officer directly owned 18,922 shares of the company's stock, valued at $3,454,211.10. This trade represents a 5.49% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, Director Lisa Ann Davis sold 1,604 shares of the firm's stock in a transaction dated Monday, August 18th. The shares were sold at an average price of $180.74, for a total value of $289,906.96. Following the completion of the transaction, the director directly owned 1,529 shares in the company, valued at $276,351.46. This trade represents a 51.20% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold 5,862 shares of company stock valued at $1,018,414 over the last three months. 52.40% of the stock is owned by company 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.