Denali Advisors LLC Makes New Investment in Penske Automotive Group, Inc. $PAG

Key Points

• Denali Advisors initiated a 7,381-share position in Penske Automotive Group during the second quarter, valued at approximately $1.32 million. Institutional investors and hedge funds collectively own 77.08% of the company.
• Penske exceeded quarterly expectations, reporting $3.62 in EPS versus the $3.42 consensus estimate and $8.51 billion in revenue, up 11.1% year over year.
• The company raised its quarterly dividend to $1.44 per share, equivalent to a $5.76 annualized payout and a 2.6% yield. Analysts maintain a “Moderate Buy” consensus rating with an average price target of $208.50.

Denali Advisors LLC bought a new stake in shares of Penske Automotive Group, Inc. (NYSE:PAG - Free Report) during the 2nd quarter, according to the company in its most recent disclosure with the SEC. The fund bought 7,381 shares of the company's stock, valued at approximately $1,321,000.

Other large investors also recently made changes to their positions in the company. Navalign LLC acquired a new stake in shares of Penske Automotive Group during the fourth quarter worth approximately $26,000. International Assets Investment Management LLC purchased a new position in Penske Automotive Group during the fourth quarter valued at approximately $30,000. Mitsubishi UFJ Asset Management Co. Ltd. acquired a new position in Penske Automotive Group in the 2nd quarter valued at approximately $35,000. Rothschild Investment LLC lifted its position in Penske Automotive Group by 37.5% in the 4th quarter. Rothschild Investment LLC now owns 242 shares of the company's stock worth $38,000 after buying an additional 66 shares in the last quarter. Finally, Acadian Asset Management LLC purchased a new stake in Penske Automotive Group in the 1st quarter worth approximately $42,000. Institutional investors and hedge funds own 77.08% of the company's stock.

Penske Automotive Group Stock Performance

PAG stock opened at $217.83 on Thursday. The company has a quick ratio of 0.21, a current ratio of 0.98 and a debt-to-equity ratio of 0.36. The company has a market capitalization of $14.30 billion, a price-to-earnings ratio of 16.04, a P/E/G ratio of 2.87 and a beta of 0.84. Penske Automotive Group, Inc. has a 12 month low of $140.12 and a 12 month high of $227.00. The firm has a 50 day moving average of $198.70 and a two-hundred day moving average of $173.95.

Penske Automotive Group (NYSE:PAG - Get Free Report) last announced its quarterly earnings results on Wednesday, July 29th. The company reported $3.62 EPS for the quarter, topping the consensus estimate of $3.42 by $0.20. The company had revenue of $8.51 billion for the quarter, compared to analyst estimates of $7.98 billion. Penske Automotive Group had a net margin of 2.81% and a return on equity of 14.78%. Penske Automotive Group's quarterly revenue was up 11.1% on a year-over-year basis. During the same quarter in the prior year, the business posted $3.78 EPS. As a group, equities analysts anticipate that Penske Automotive Group, Inc. will post 13.61 EPS for the current fiscal year.

Penske Automotive Group Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Tuesday, September 1st. Shareholders of record on Friday, August 14th will be given a dividend of $1.44 per share. The ex-dividend date of this dividend is Friday, August 14th. This is a positive change from Penske Automotive Group's previous quarterly dividend of $1.42. This represents a $5.76 annualized dividend and a yield of 2.6%. Penske Automotive Group's dividend payout ratio (DPR) is currently 42.42%.

Analyst Upgrades and Downgrades

PAG has been the topic of several research analyst reports. Citigroup cut shares of Penske Automotive Group from a "buy" rating to a "neutral" rating and boosted their price target for the company from $199.00 to $210.00 in a report on Thursday, July 23rd. JPMorgan Chase & Co. increased their price objective on Penske Automotive Group from $170.00 to $215.00 and gave the stock a "neutral" rating in a report on Tuesday, August 4th. UBS Group set a $190.00 price objective on Penske Automotive Group in a research report on Friday, July 10th. Weiss Ratings upgraded Penske Automotive Group from a "hold (c+)" rating to a "buy (b-)" rating in a research note on Friday, July 10th. Finally, Barclays upped their target price on Penske Automotive Group from $220.00 to $225.00 and gave the stock an "overweight" rating in a research report on Wednesday. Five equities research analysts have rated the stock with a Buy rating and five have given a Hold rating to the company. Based on data from MarketBeat, Penske Automotive Group has a consensus rating of "Moderate Buy" and an average price target of $208.50.

Insider Buying and Selling

In other Penske Automotive Group news, CFO Michelle Hulgrave sold 1,500 shares of the stock in a transaction on Tuesday, June 2nd. The shares were sold at an average price of $171.80, for a total transaction of $257,700.00. Following the transaction, the chief financial officer directly 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 transaction was disclosed in a filing with the SEC, which is available through the SEC website. 52.90% of the stock is owned by insiders.

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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