Hsbc Holdings PLC Purchases 12,980 Shares of Penske Automotive Group, Inc. $PAG

Key Points

• HSBC Holdings PLC increased its stake in Penske Automotive Group, raising its holdings by 176% in the first quarter, now owning shares valued at approximately $2.90 million.
• Penske Automotive Group announced a quarterly dividend increase to $1.32 per share, up from $1.26, with a yield of 2.8%.
• A range of analysts have bullish outlooks on Penske Automotive Group, with several firms raising their price targets, including Bank of America, which lifted its target to $205.

Hsbc Holdings PLC raised its position in shares of Penske Automotive Group, Inc. (NYSE:PAG - Free Report) by 176.0% in the 1st quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The institutional investor owned 20,357 shares of the company's stock after buying an additional 12,980 shares during the period. Hsbc Holdings PLC's holdings in Penske Automotive Group were worth $2,904,000 as of its most recent filing with the Securities and Exchange Commission.

Other institutional investors and hedge funds have also modified their holdings of the company. State of Michigan Retirement System boosted its position in Penske Automotive Group by 2.3% in the 1st quarter. State of Michigan Retirement System now owns 4,500 shares of the company's stock valued at $648,000 after buying an additional 100 shares during the last quarter. Securian Asset Management Inc. raised its position 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 acquiring an additional 100 shares during the last quarter. Fifth Third Bancorp lifted its stake 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 valued at $76,000 after acquiring an additional 125 shares during the period. Pacific Global Investment Management Co. boosted its holdings in Penske Automotive Group by 1.1% in the first quarter. Pacific Global Investment Management Co. now owns 11,953 shares of the company's stock valued at $1,721,000 after acquiring an additional 135 shares during the last quarter. Finally, GAMMA Investing LLC boosted its holdings in Penske Automotive Group by 51.9% in the first quarter. GAMMA Investing LLC now owns 398 shares of the company's stock valued at $57,000 after acquiring an additional 136 shares during the last quarter. 77.08% of the stock is owned by institutional investors and hedge funds.

Analyst Upgrades and Downgrades

Several brokerages have weighed in on PAG. Stephens reissued an "equal weight" rating and set a $140.00 price objective on shares of Penske Automotive Group in a report on Wednesday, June 11th. Bank of America lifted their price objective on Penske Automotive Group from $190.00 to $205.00 and gave the stock a "buy" rating in a research note on Monday, June 16th. Morgan Stanley increased their target price on Penske Automotive Group from $180.00 to $190.00 and gave the company an "overweight" rating in a research note on Thursday, August 14th. Citigroup raised their target price on Penske Automotive Group from $185.00 to $195.00 and gave the stock a "buy" rating in a report on Monday, May 19th. Finally, JPMorgan Chase & Co. upgraded Penske Automotive Group from an "underweight" rating to a "neutral" rating and boosted their target price for the stock from $155.00 to $175.00 in a research report on Tuesday, August 5th. Four 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 presently has an average rating of "Moderate Buy" and an average price target of $181.00.

Insider Buying and Selling at Penske Automotive Group

In related news, EVP Shane M. Spradlin sold 3,158 shares of the firm's stock in a transaction 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 sale, the executive vice president directly owned 36,152 shares in the company, valued at $6,040,999.20. This trade represents a 8.03% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this hyperlink. Also, CEO Roger S. Penske sold 77,357 shares of the business's stock in a transaction on Tuesday, June 3rd. The shares were sold at an average price of $161.37, for a total transaction of $12,483,099.09. Following the completion of the sale, the chief executive officer directly owned 140,042 shares in the company, valued at $22,598,577.54. This represents a 35.58% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold 84,748 shares of company stock worth $13,748,660 in the last quarter. Company insiders own 51.70% of the company's stock.

Penske Automotive Group Trading Down 1.4%

Penske Automotive Group stock traded down $2.66 during mid-day trading on Friday, hitting $184.35. 204,020 shares of the company's stock were exchanged, compared to its average volume of 213,398. The firm has a market capitalization of $12.17 billion, a P/E ratio of 12.83 and a beta of 0.87. Penske Automotive Group, Inc. has a fifty-two week low of $134.05 and a fifty-two week high of $189.51. 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 company's 50 day simple moving average is $177.49 and its 200-day simple moving average is $165.49.

Penske Automotive Group (NYSE:PAG - Get Free Report) last posted its earnings results on Wednesday, July 30th. The company reported $3.78 earnings per share (EPS) for the quarter, beating 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 firm had revenue of $7.66 billion during the quarter, compared to analysts' expectations of $7.98 billion. During the same period in the previous year, the firm earned $3.61 earnings per share. The company's revenue was down .4% on a year-over-year basis. On average, equities analysts anticipate that Penske Automotive Group, Inc. will post 13.86 earnings per share for the current year.

Penske Automotive Group Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Wednesday, September 3rd. Investors of record on Friday, August 15th will be paid a dividend of $1.32 per share. This represents a $5.28 dividend on an annualized basis and a yield of 2.9%. The ex-dividend date of this dividend is Friday, August 15th. This is a positive change from Penske Automotive Group's previous quarterly dividend of $1.26. Penske Automotive Group's dividend payout ratio (DPR) is currently 36.74%.

Penske Automotive Group announced that its board has initiated a stock buyback plan on Wednesday, May 14th that permits the company to repurchase $250.00 million in outstanding shares. This repurchase authorization permits the company to reacquire up to 2.3% of its shares through open market purchases. Shares repurchase plans are often a sign that the company's board of directors believes its stock is undervalued.

Penske Automotive Group Company 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.