Financial Engines Advisors L.L.C. Buys 2,879 Shares of Penske Automotive Group, Inc. (NYSE:PAG)

Key Points

• Financial Engines Advisors L.L.C. increased its holdings in Penske Automotive Group, Inc. by 99% during Q1, owning a total of 5,788 shares worth $833,000 after acquiring an additional 2,879 shares.
• Analysts have generally positive outlooks on Penske Automotive Group, with seven upgrades leading to a consensus price target of $179.00 per share.
• The company announced a quarterly dividend increase to $1.32 per share, reflecting a 2.9% yield, alongside a $250 million stock buyback program.

Financial Engines Advisors L.L.C. lifted its position in shares of Penske Automotive Group, Inc. (NYSE:PAG - Free Report) by 99.0% during the first quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The firm owned 5,788 shares of the company's stock after purchasing an additional 2,879 shares during the period. Financial Engines Advisors L.L.C.'s holdings in Penske Automotive Group were worth $833,000 as of its most recent filing with the Securities and Exchange Commission.

Several other hedge funds have also added to or reduced their stakes in PAG. Vanguard Group Inc. grew its position in shares of Penske Automotive Group by 0.3% during the 1st quarter. Vanguard Group Inc. now owns 2,004,832 shares of the company's stock worth $288,656,000 after purchasing an additional 5,641 shares in the last quarter. Burgundy Asset Management Ltd. grew its position in Penske Automotive Group by 1.7% during the fourth quarter. Burgundy Asset Management Ltd. now owns 806,860 shares of the company's stock worth $122,998,000 after buying an additional 13,106 shares in the last quarter. AQR Capital Management LLC grew its position in Penske Automotive Group by 3.5% during the fourth quarter. AQR Capital Management LLC now owns 606,709 shares of the company's stock worth $92,487,000 after buying an additional 20,506 shares in the last quarter. Invesco Ltd. increased its stake in Penske Automotive Group by 3.4% during the 1st quarter. Invesco Ltd. now owns 223,630 shares of the company's stock worth $32,198,000 after acquiring an additional 7,276 shares during the period. Finally, Northern Trust Corp raised its holdings in Penske Automotive Group by 18.5% in the 4th quarter. Northern Trust Corp now owns 155,560 shares of the company's stock valued at $23,714,000 after acquiring an additional 24,274 shares in the last quarter. 77.08% of the stock is owned by institutional investors and hedge funds.

Wall Street Analysts Forecast Growth

A number of research analysts recently commented on PAG shares. Wall Street Zen upgraded Penske Automotive Group from a "hold" rating to a "buy" rating in a research report on Wednesday, April 23rd. Morgan Stanley reissued an "overweight" rating and issued a $190.00 target price (up from $180.00) on shares of Penske Automotive Group in a report on Thursday. Stephens restated 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. JPMorgan Chase & Co. raised shares of Penske Automotive Group from an "underweight" rating to a "neutral" rating and upped their price target for the stock from $155.00 to $175.00 in a report on Tuesday, August 5th. Finally, Bank of America lifted their price objective on shares of Penske Automotive Group from $190.00 to $205.00 and gave the company a "buy" rating in a research note on Monday, June 16th. Two investment analysts have rated the stock with a hold rating and five have issued a buy rating to the company's stock. According to MarketBeat, Penske Automotive Group presently has a consensus rating of "Moderate Buy" and a consensus target price of $181.00.

Penske Automotive Group Price Performance

Shares of PAG stock traded down $2.90 on Thursday, reaching $182.92. The company had a trading volume of 163,270 shares, compared to its average volume of 265,747. The business's 50-day moving average is $174.05 and its 200 day moving average is $164.14. Penske Automotive Group, Inc. has a one year low of $134.05 and a one year high of $186.55. The company has a quick ratio of 0.21, a current ratio of 0.90 and a debt-to-equity ratio of 0.16. The stock has a market capitalization of $12.08 billion, a PE ratio of 12.73 and a beta of 0.87.

Penske Automotive Group (NYSE:PAG - Get Free Report) last issued 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 net margin of 3.13% and a return on equity of 17.43%. The business had revenue of $7.66 billion during the quarter, compared to the consensus estimate of $7.98 billion. During the same quarter in the prior year, the firm earned $3.61 EPS. The firm's revenue was down .4% compared to the same quarter last year. Equities research analysts forecast that Penske Automotive Group, Inc. will post 13.86 EPS for the current fiscal year.

Penske Automotive Group Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Wednesday, September 3rd. Investors of record on Friday, August 15th will be issued 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 of this dividend is Friday, August 15th. This represents a $5.28 annualized dividend and a dividend yield of 2.9%. Penske Automotive Group's dividend payout ratio (DPR) is 36.74%.

Penske Automotive Group declared that its Board of Directors has initiated a stock buyback 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 often an indication that the company's leadership believes its shares are undervalued.

Insider Activity at Penske Automotive Group

In other Penske Automotive Group news, Director Greg C. Smith sold 1,529 shares of the company's stock in a transaction dated Tuesday, June 3rd. The stock was sold at an average price of $161.64, for a total value of $247,147.56. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, 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 transaction, the executive vice president owned 36,152 shares of the company's stock, valued at approximately $6,040,999.20. This trade represents a 8.03% decrease in their position. The disclosure for this sale can be found here. Insiders have sold a total of 82,044 shares of company stock valued at $13,257,948 in the last 90 days. 51.70% of the stock is owned by corporate insiders.

Penske Automotive Group 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.