Jacobs Levy Equity Management Inc. Grows Stake in Penske Automotive Group, Inc. $PAG

Key Points

• Jacobs Levy Equity Management Inc. increased its stake in Penske Automotive Group by 73.4% during the first quarter, now owning 17,746 shares valued at approximately $2.55 million.
• Penske Automotive Group's recent quarterly earnings exceeded estimates, reporting $3.78 earnings per share, while revenues fell slightly short at $7.66 billion.
• The company announced a quarterly dividend increase from $1.26 to $1.32, reflecting a 2.8% yield based on its annualized payout.

Jacobs Levy Equity Management Inc. grew its stake in shares of Penske Automotive Group, Inc. (NYSE:PAG - Free Report) by 73.4% in the 1st quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The institutional investor owned 17,746 shares of the company's stock after acquiring an additional 7,509 shares during the quarter. Jacobs Levy Equity Management Inc.'s holdings in Penske Automotive Group were worth $2,555,000 as of its most recent SEC filing.

A number of other hedge funds also recently bought and sold shares of the company. Northern Trust Corp increased its stake in Penske Automotive Group by 18.5% during the 4th quarter. Northern Trust Corp now owns 155,560 shares of the company's stock valued at $23,714,000 after purchasing an additional 24,274 shares in the last quarter. Algert Global LLC purchased a new stake in shares of Penske Automotive Group during the fourth quarter valued at approximately $278,000. BNP Paribas Financial Markets increased its position in shares of Penske Automotive Group by 64.6% during the fourth quarter. BNP Paribas Financial Markets now owns 36,474 shares of the company's stock valued at $5,560,000 after acquiring an additional 14,321 shares in the last quarter. Deutsche Bank AG raised its holdings in Penske Automotive Group by 8.7% in the 4th quarter. Deutsche Bank AG now owns 22,176 shares of the company's stock worth $3,381,000 after acquiring an additional 1,770 shares during the last quarter. Finally, Janus Henderson Group PLC lifted its position in Penske Automotive Group by 15.1% in the 4th quarter. Janus Henderson Group PLC now owns 45,552 shares of the company's stock valued at $6,944,000 after acquiring an additional 5,983 shares in the last quarter. Institutional investors own 77.08% of the company's stock.

Insider Buying and Selling at Penske Automotive Group

In related news, CFO Michelle Hulgrave sold 1,100 shares of the firm's stock in a transaction on Tuesday, August 19th. The stock was sold at an average price of $182.55, for a total value of $200,805.00. Following the transaction, the chief financial officer directly owned 18,922 shares of the company's stock, valued at approximately $3,454,211.10. This trade represents a 5.49% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, Director Lisa Ann Davis sold 1,604 shares of the business's stock in a transaction dated Monday, August 18th. The shares were sold at an average price of $180.74, for a total value of $289,906.96. Following the sale, the director directly owned 1,529 shares of the company's stock, valued at $276,351.46. This represents a 51.20% decrease in their position. The disclosure for this sale can be found here. Company insiders own 52.40% of the company's stock.

Penske Automotive Group Trading Down 0.8%

Shares of NYSE:PAG opened at $186.21 on Wednesday. The stock's 50-day simple moving average is $178.98 and its two-hundred day simple moving average is $166.21. The stock has a market capitalization of $12.30 billion, a price-to-earnings ratio of 12.96 and a beta of 0.89. Penske Automotive Group, Inc. has a 52-week low of $134.05 and a 52-week high of $189.51. The company has a debt-to-equity ratio of 0.16, a quick ratio of 0.21 and a current ratio of 0.90.

Penske Automotive Group (NYSE:PAG - Get Free Report) last issued its quarterly earnings data on Wednesday, July 30th. The company reported $3.78 earnings per share for the quarter, topping the consensus estimate of $3.56 by $0.22. The firm had revenue of $7.66 billion for the quarter, compared to analysts' expectations of $7.98 billion. Penske Automotive Group had a net margin of 3.13% and a return on equity of 17.43%. The business's quarterly revenue was down .4% on a year-over-year basis. During the same quarter in the prior year, the business earned $3.61 EPS. Analysts expect that Penske Automotive Group, Inc. will post 13.86 EPS for the current year.

Penske Automotive Group declared that its board has approved a stock repurchase program on Wednesday, May 14th that authorizes the company to repurchase $250.00 million in outstanding shares. This repurchase authorization authorizes the company to buy up to 2.3% of its shares through open market purchases. Shares repurchase programs are typically a sign that the company's leadership believes its shares are undervalued.

Penske Automotive Group Increases Dividend

The firm also recently declared a quarterly dividend, which was paid on Wednesday, September 3rd. Shareholders of record on Friday, August 15th were given a $1.32 dividend. The ex-dividend date was Friday, August 15th. This is a boost from Penske Automotive Group's previous quarterly dividend of $1.26. This represents a $5.28 annualized dividend and a yield of 2.8%. Penske Automotive Group's payout ratio is 36.74%.

Analysts Set New Price Targets

A number of research firms have commented on PAG. Bank of America lifted their target price on Penske Automotive Group from $190.00 to $205.00 and gave the stock a "buy" rating in a report on Monday, June 16th. Stephens reiterated an "equal weight" rating and issued a $140.00 price objective on shares of Penske Automotive Group in a report on Wednesday, June 11th. JPMorgan Chase & Co. upgraded shares of Penske Automotive Group from an "underweight" rating to a "neutral" rating and upped their target price for the company from $155.00 to $175.00 in a research note on Tuesday, August 5th. Citigroup raised their price target on shares of 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 boosted their price objective on shares of Penske Automotive Group from $180.00 to $190.00 and gave the company an "overweight" rating in a report on Thursday, August 14th. Four investment analysts have rated the stock with a Buy rating and two have issued a Hold rating to the company's stock. Based on data from MarketBeat.com, Penske Automotive Group currently has a consensus rating of "Moderate Buy" and an average price target of $181.00.

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.

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