Gamco Investors INC. ET AL Cuts Holdings in Penske Automotive Group, Inc. $PAG

Key Points

• Gamco Investors INC. ET AL reduced its holdings in Penske Automotive Group by 0.4%, resulting in ownership of approximately 416,231 shares valued at $59.9 million.
• Penske Automotive Group recently increased its quarterly dividend to $1.32 per share, representing a 4.8% increase from the previous dividend.
• Analysts' target prices for Penske Automotive Group stock vary, with a consensus target of $181.00 and several analysts giving it a "Buy" rating.

Gamco Investors INC. ET AL lowered its holdings in Penske Automotive Group, Inc. (NYSE:PAG - Free Report) by 0.4% during the 1st quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The firm owned 416,231 shares of the company's stock after selling 1,751 shares during the period. Gamco Investors INC. ET AL owned approximately 0.63% of Penske Automotive Group worth $59,929,000 at the end of the most recent quarter.

Several other hedge funds and other institutional investors have also recently modified their holdings of PAG. Envestnet Asset Management Inc. grew its holdings in shares of Penske Automotive Group by 15.2% during the fourth quarter. Envestnet Asset Management Inc. now owns 4,898 shares of the company's stock worth $747,000 after purchasing an additional 645 shares in the last quarter. Raymond James Financial Inc. bought a new position in shares of Penske Automotive Group during the fourth quarter valued at approximately $3,018,000. Mariner LLC raised its holdings in Penske Automotive Group by 30.5% in the fourth quarter. Mariner LLC now owns 2,893 shares of the company's stock worth $441,000 after purchasing an additional 676 shares in the last quarter. MetLife Investment Management LLC raised its holdings in Penske Automotive Group by 9.1% in the fourth quarter. MetLife Investment Management LLC now owns 10,534 shares of the company's stock worth $1,606,000 after purchasing an additional 875 shares in the last quarter. Finally, TD Waterhouse Canada Inc. increased its holdings in shares of Penske Automotive Group by 42.4% during the fourth quarter. TD Waterhouse Canada Inc. now owns 531 shares of the company's stock valued at $81,000 after acquiring an additional 158 shares in the last quarter. 77.08% of the stock is currently owned by institutional investors.

Insider Buying and Selling at Penske Automotive Group

In other news, Director Greg C. Smith sold 1,529 shares of the stock in a transaction that occurred on Tuesday, June 3rd. The stock was sold at an average price of $161.64, for a total transaction of $247,147.56. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. Also, Director Lisa Ann Davis sold 1,604 shares of the stock in a transaction that occurred on Monday, August 18th. The stock was sold at an average price of $180.74, for a total value of $289,906.96. Following the transaction, the director directly owned 1,529 shares of the company's stock, valued at approximately $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. In the last quarter, insiders sold 84,748 shares of company stock worth $13,748,660. 51.70% of the stock is currently owned by company insiders.

Wall Street Analyst Weigh In

Several research analysts have issued reports on the company. Stephens reissued 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. Bank of America raised their price target on Penske Automotive Group from $190.00 to $205.00 and gave the company a "buy" rating in a report on Monday, June 16th. JPMorgan Chase & Co. upgraded Penske Automotive Group from an "underweight" rating to a "neutral" rating and lifted their target price for the stock from $155.00 to $175.00 in a report on Tuesday, August 5th. Citigroup boosted their price objective on Penske Automotive Group from $185.00 to $195.00 and gave the company a "buy" rating in a report on Monday, May 19th. Finally, Morgan Stanley lifted their target price on Penske Automotive Group from $180.00 to $190.00 and gave the company 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 issued a Hold rating to the company. According to data from MarketBeat, the company presently has a consensus rating of "Moderate Buy" and an average price target of $181.00.

Penske Automotive Group Trading Down 1.4%

Shares of PAG traded down $2.66 during midday trading on Friday, hitting $184.35. 204,020 shares of the stock were exchanged, compared to its average volume of 213,398. Penske Automotive Group, Inc. has a 52-week low of $134.05 and a 52-week high of $189.51. The firm has a market cap of $12.17 billion, a P/E ratio of 13.29 and a beta of 0.87. 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 stock has a fifty day simple moving average of $177.49 and a 200 day simple moving average of $165.49.

Penske Automotive Group (NYSE:PAG - Get Free Report) last announced its quarterly earnings results on Wednesday, July 30th. The company reported $3.78 earnings per share (EPS) for the quarter, topping analysts' consensus estimates 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 during the quarter, compared to the consensus estimate of $7.98 billion. During the same period in the previous year, the business earned $3.61 EPS. Penske Automotive Group's revenue for the quarter was down .4% on a year-over-year basis. On average, research analysts anticipate that Penske Automotive Group, Inc. will post 13.86 EPS for the current fiscal year.

Penske Automotive Group declared that its Board of Directors has authorized a share repurchase program on Wednesday, May 14th that allows the company to buyback $250.00 million in outstanding shares. This buyback authorization allows the company to buy 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 stock is undervalued.

Penske Automotive Group Increases Dividend

The business also recently declared a quarterly dividend, which will be paid on Wednesday, September 3rd. Investors of record on Friday, August 15th will be given a $1.32 dividend. This is a boost from Penske Automotive Group's previous quarterly dividend of $1.26. The ex-dividend date is Friday, August 15th. This represents a $5.28 annualized dividend and a yield of 2.9%. Penske Automotive Group's payout ratio is presently 36.74%.

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.