Ontario Teachers Pension Plan Board Acquires New Holdings in Penske Automotive Group, Inc. (NYSE:PAG)

Key Points

• The Ontario Teachers Pension Plan Board has acquired a new stake in Penske Automotive Group, purchasing 4,840 shares valued at approximately $697,000.
• Analysts have raised their price targets for Penske Automotive Group, with Citigroup increasing its target from $185.00 to $195.00 and Bank of America from $190.00 to $205.00, reflecting overall positive sentiment.
• The company has declared a quarterly dividend increase to $1.32 per share, showcasing its commitment to returning value to shareholders.

Ontario Teachers Pension Plan Board purchased a new position in Penske Automotive Group, Inc. (NYSE:PAG - Free Report) during the first quarter, according to its most recent Form 13F filing with the SEC. The fund purchased 4,840 shares of the company's stock, valued at approximately $697,000.

Other large investors also recently added to or reduced their stakes in the company. UMB Bank n.a. lifted its position in Penske Automotive Group by 421.5% during the first quarter. UMB Bank n.a. now owns 339 shares of the company's stock valued at $49,000 after purchasing an additional 274 shares during the last quarter. GAMMA Investing LLC raised its holdings in Penske Automotive Group by 51.9% during the 1st quarter. GAMMA Investing LLC now owns 398 shares of the company's stock valued at $57,000 after buying an additional 136 shares during the period. Fifth Third Bancorp raised its holdings in Penske Automotive Group by 31.0% during the 1st quarter. Fifth Third Bancorp now owns 528 shares of the company's stock valued at $76,000 after buying an additional 125 shares during the period. TD Waterhouse Canada Inc. raised its holdings in Penske Automotive Group by 42.4% during the 4th quarter. TD Waterhouse Canada Inc. now owns 531 shares of the company's stock valued at $81,000 after buying an additional 158 shares during the period. Finally, State of Wyoming purchased a new stake in Penske Automotive Group during the 4th quarter valued at $105,000. 77.08% of the stock is owned by hedge funds and other institutional investors.

Insider Transactions at Penske Automotive Group

In other news, CEO Roger S. Penske sold 77,357 shares of the stock in a transaction on Tuesday, June 3rd. The stock was sold at an average price of $161.37, for a total transaction of $12,483,099.09. Following the transaction, the chief executive officer owned 140,042 shares of the company's stock, valued at approximately $22,598,577.54. This represents a 35.58% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Also, EVP Shane M. Spradlin sold 3,158 shares of the stock in a transaction on Monday, June 9th. The stock was sold at an average price of $167.10, for a total value of $527,701.80. Following the transaction, the executive vice president directly owned 36,152 shares in the company, valued at $6,040,999.20. The trade was a 8.03% decrease in their position. The disclosure for this sale can be found here. In the last 90 days, insiders have sold 82,044 shares of company stock valued at $13,257,948. 52.40% of the stock is currently owned by corporate insiders.

Wall Street Analyst Weigh In

PAG has been the topic of several recent research reports. Bank of America increased 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. raised Penske Automotive Group from an "underweight" rating to a "neutral" rating and upped their price objective for the company from $155.00 to $175.00 in a research report on Tuesday, August 5th. Wall Street Zen raised Penske Automotive Group from a "hold" rating to a "buy" rating in a research report on Wednesday, April 23rd. Citigroup upped their price objective on Penske Automotive Group from $185.00 to $195.00 and gave the company a "buy" rating in a research report on Monday, May 19th. Finally, Stephens reaffirmed an "equal weight" rating and issued a $140.00 price objective on shares of Penske Automotive Group in a research report on Wednesday, June 11th. Two investment analysts have rated the stock with a hold rating and five have assigned a buy rating to the company's stock. Based on data from MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and a consensus target price of $179.00.

Penske Automotive Group Trading Up 2.2%

Penske Automotive Group stock traded up $3.97 during mid-day trading on Wednesday, hitting $184.93. The company's stock had a trading volume of 66,274 shares, compared to its average volume of 241,127. The company has a 50 day moving average of $173.18 and a 200-day moving average of $163.86. The stock has a market cap of $12.21 billion, a PE ratio of 12.87 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. Penske Automotive Group, Inc. has a one year low of $134.05 and a one year high of $186.33.

Penske Automotive Group (NYSE:PAG - Get Free Report) last posted 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 business had revenue of $7.66 billion for the quarter, compared to the consensus estimate of $7.98 billion. During the same quarter in the prior year, the company earned $3.61 EPS. The business's revenue was down .4% compared to the same quarter last year. On average, research analysts anticipate that Penske Automotive Group, Inc. will post 13.86 EPS for the current year.

Penske Automotive Group announced that its Board of Directors has authorized a share repurchase plan on Wednesday, May 14th that authorizes the company to buyback $250.00 million in outstanding shares. This buyback authorization authorizes the company to buy up to 2.3% of its shares through open market purchases. Shares buyback plans are usually an indication that the company's board of directors believes its shares are undervalued.

Penske Automotive Group Increases Dividend

The company also recently declared a quarterly dividend, which will be paid on Wednesday, September 3rd. Stockholders of record on Friday, August 15th will be given a dividend of $1.32 per share. This represents a $5.28 dividend on an annualized basis and a dividend 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 is currently 35.07%.

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.