Dimensional Fund Advisors LP Grows Position in Penske Automotive Group, Inc. $PAG

Key Points

• Dimensional Fund Advisors LP increased its Penske Automotive Group stake by 11.9% in the first quarter, bringing its holdings to 1.45 million shares worth about $216.5 million.
• Penske reported better-than-expected quarterly earnings, posting $3.05 EPS versus estimates of $2.91 and revenue of $7.86 billion versus $7.71 billion expected.
• The company raised its quarterly dividend to $1.44 per share from $1.42, while recent reports also pointed to an unsolicited take-private bid from Penske Corporation and Mitsui at $210 per share.

Dimensional Fund Advisors LP grew its position in Penske Automotive Group, Inc. (NYSE:PAG - Free Report) by 11.9% during the 1st quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The institutional investor owned 1,447,910 shares of the company's stock after purchasing an additional 154,443 shares during the period. Dimensional Fund Advisors LP owned approximately 2.20% of Penske Automotive Group worth $216,489,000 as of its most recent SEC filing.

Other institutional investors have also modified their holdings of the company. Navalign LLC acquired a new position in Penske Automotive Group during the fourth quarter valued at approximately $26,000. International Assets Investment Management LLC acquired a new stake in shares of Penske Automotive Group in the fourth quarter worth $30,000. Rothschild Investment LLC raised 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 acquiring an additional 66 shares during the period. Acadian Asset Management LLC purchased a new position in shares of Penske Automotive Group in the 1st quarter valued at $42,000. Finally, Global Retirement Partners LLC lifted its holdings in shares of Penske Automotive Group by 186.6% during the 4th quarter. Global Retirement Partners LLC now owns 321 shares of the company's stock valued at $51,000 after acquiring an additional 209 shares in the last quarter. Hedge funds and other institutional investors own 77.08% of the company's stock.

Insider Activity

In related news, Director Greg C. Smith sold 1,488 shares of the stock in a transaction dated Monday, May 18th. The stock was sold at an average price of $160.02, for a total value of $238,109.76. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. Also, CFO Michelle Hulgrave sold 1,500 shares of the firm's stock in a transaction that occurred on Tuesday, June 2nd. The shares were sold at an average price of $171.80, for a total value of $257,700.00. Following the sale, the chief financial officer owned 17,596 shares of the company's stock, valued at approximately $3,022,992.80. This trade represents a 7.86% decrease in their position. The SEC filing for this sale provides additional information. Insiders own 52.90% of the company's stock.

Penske Automotive Group Price Performance

PAG opened at $215.71 on Friday. Penske Automotive Group, Inc. has a twelve month low of $140.12 and a twelve month high of $219.09. The firm has a market cap of $14.18 billion, a price-to-earnings ratio of 16.10, a PEG ratio of 2.78 and a beta of 0.87. The company has a current ratio of 0.96, a quick ratio of 0.22 and a debt-to-equity ratio of 0.39. The company has a fifty day simple moving average of $179.65 and a 200 day simple moving average of $166.53.

Penske Automotive Group (NYSE:PAG - Get Free Report) last issued its quarterly earnings data on Wednesday, April 29th. The company reported $3.05 EPS for the quarter, topping analysts' consensus estimates of $2.91 by $0.14. The firm had revenue of $7.86 billion for the quarter, compared to analyst estimates of $7.71 billion. Penske Automotive Group had a net margin of 2.85% and a return on equity of 15.13%. The firm's revenue was down 1.1% compared to the same quarter last year. During the same quarter in the previous year, the business posted $3.66 EPS. Equities research analysts expect that Penske Automotive Group, Inc. will post 13.43 EPS for the current fiscal year.

Penske Automotive Group Increases Dividend

The firm also recently declared a quarterly dividend, which will be paid on Tuesday, September 1st. Investors of record on Friday, August 14th will be paid a $1.44 dividend. This represents a $5.76 annualized dividend and a dividend yield of 2.7%. This is a positive change from Penske Automotive Group's previous quarterly dividend of $1.42. The ex-dividend date is Friday, August 14th. Penske Automotive Group's payout ratio is presently 42.39%.

Wall Street Analysts Forecast Growth

A number of brokerages recently weighed in on PAG. UBS Group set a $190.00 price target on shares of Penske Automotive Group in a research report on Friday, July 10th. JPMorgan Chase & Co. boosted their price objective on Penske Automotive Group from $165.00 to $170.00 and gave the stock a "neutral" rating in a research note on Thursday, May 7th. Morgan Stanley reaffirmed an "overweight" rating and issued a $190.00 target price on shares of Penske Automotive Group in a research report on Thursday, May 7th. 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, Citigroup downgraded Penske Automotive Group from a "buy" rating to a "neutral" rating and raised their target price for the company from $199.00 to $210.00 in a report on Thursday. Five equities research analysts have rated the stock with a Buy rating and five have issued a Hold rating to the company. According to MarketBeat, Penske Automotive Group currently has an average rating of "Moderate Buy" and a consensus price target of $196.00.

More Penske Automotive Group News

Here are the key news stories impacting Penske Automotive Group this week:

• Positive Sentiment: Penske Automotive confirmed receipt of an unsolicited, preliminary, non-binding proposal from Penske Corporation and Mitsui to take the company private at $210 per share, a premium to the recent trading level and a signal that a buyout could be near. Article Title
• Positive Sentiment: The company announced its 23rd consecutive quarterly dividend increase, lifting the payout to $1.44 per share from $1.42, which supports the stock’s income appeal and reflects continued cash generation. Article Title
• Positive Sentiment: Several news reports highlighted the potential buyout as a roughly $3.8 billion to $4 billion deal, reinforcing speculation that shareholders could receive a takeover premium. Article Title
• Neutral Sentiment: Citigroup downgraded PAG to “neutral” from “buy,” but raised its price target to $210, which is still close to the buyout talk and suggests limited near-term upside from current levels. Article Title

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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