Penske Automotive Group, Inc. $PAG Shares Purchased by Bahl & Gaynor Inc.

Key Points

• Bahl & Gaynor Inc. increased its stake in Penske Automotive Group by 16.7%, acquiring a total of 96,313 shares valued at approximately $13.87 million.
• Several analysts raised their price targets for Penske Automotive Group, with Morgan Stanley setting a new target of $190 and Bank of America raising theirs to $205, indicating a positive outlook on the company's stock.
• Penske Automotive Group announced a quarterly dividend increase to $1.32 and authorized a $250 million share buyback program, reflecting confidence in the company's undervaluation.

Bahl & Gaynor Inc. lifted its stake in shares of Penske Automotive Group, Inc. (NYSE:PAG - Free Report) by 16.7% during the 1st quarter, according to the company in its most recent filing with the Securities & Exchange Commission. The firm owned 96,313 shares of the company's stock after acquiring an additional 13,778 shares during the period. Bahl & Gaynor Inc. owned 0.15% of Penske Automotive Group worth $13,867,000 as of its most recent filing with the Securities & Exchange Commission.

Other institutional investors have also recently made changes to their positions in the company. UMB Bank n.a. lifted its holdings in Penske Automotive Group by 421.5% in the first quarter. UMB Bank n.a. now owns 339 shares of the company's stock valued at $49,000 after acquiring an additional 274 shares during the last quarter. GAMMA Investing LLC raised its position 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 purchasing an additional 136 shares during the period. Brooklyn Investment Group lifted its stake in shares of Penske Automotive Group by 353.0% in the 1st quarter. Brooklyn Investment Group now owns 453 shares of the company's stock valued at $65,000 after purchasing an additional 353 shares during the last quarter. Fifth Third Bancorp lifted its stake in shares of Penske Automotive Group by 31.0% in the 1st quarter. Fifth Third Bancorp now owns 528 shares of the company's stock valued at $76,000 after purchasing an additional 125 shares during the last quarter. Finally, TD Waterhouse Canada Inc. lifted its position in Penske Automotive Group by 42.4% in the fourth 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 last quarter. Hedge funds and other institutional investors own 77.08% of the company's stock.

Insider Activity at Penske Automotive Group

In other news, EVP Shane M. Spradlin sold 3,158 shares of the company's stock in a transaction that occurred on Monday, June 9th. The stock was sold at an average price of $167.10, for a total transaction of $527,701.80. Following the completion of the sale, the executive vice president owned 36,152 shares in the company, valued at $6,040,999.20. This represents a 8.03% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, CFO Michelle Hulgrave sold 1,100 shares of Penske Automotive Group stock in a transaction on Tuesday, August 19th. The shares were sold at an average price of $182.55, for a total transaction of $200,805.00. Following the completion of the transaction, the chief financial officer owned 18,922 shares in the company, valued at approximately $3,454,211.10. This trade represents a 5.49% 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 ninety days. Company insiders own 52.40% of the company's stock.

Wall Street Analysts Forecast Growth

Several research analysts have recently commented on the company. Citigroup raised their price target on Penske Automotive Group from $185.00 to $195.00 and gave the stock a "buy" rating in a research report on Monday, May 19th. Morgan Stanley raised 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. Bank of America boosted their target price on shares of Penske Automotive Group from $190.00 to $205.00 and gave the stock a "buy" rating in a research note on Monday, June 16th. Stephens reissued an "equal weight" rating and issued a $140.00 target price on shares of Penske Automotive Group in a report on Wednesday, June 11th. Finally, JPMorgan Chase & Co. raised Penske Automotive Group from an "underweight" rating to a "neutral" rating and lifted their price target for the stock from $155.00 to $175.00 in a report on Tuesday, August 5th. Four investment analysts have rated the stock with a Buy rating and two have given a Hold 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 price target of $181.00.

Penske Automotive Group Stock Performance

Shares of PAG stock traded up $0.97 during trading hours on Wednesday, hitting $188.22. The stock had a trading volume of 218,694 shares, compared to its average volume of 239,742. The company has a debt-to-equity ratio of 0.16, a current ratio of 0.90 and a quick ratio of 0.21. The firm has a market capitalization of $12.43 billion, a PE ratio of 13.10 and a beta of 0.87. The stock's 50 day moving average is $176.57 and its 200 day moving average is $165.06. Penske Automotive Group, Inc. has a twelve month low of $134.05 and a twelve month high of $189.51.

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

Penske Automotive Group declared that its Board of Directors has approved a share buyback program on Wednesday, May 14th that permits the company to buyback $250.00 million in shares. This buyback authorization permits the company to buy up to 2.3% of its stock through open market purchases. Stock buyback programs are generally an indication that the company's board believes its shares are undervalued.

Penske Automotive Group Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Wednesday, September 3rd. Shareholders of record on Friday, August 15th will be paid a dividend of $1.32 per share. The ex-dividend date of this dividend is Friday, August 15th. This represents a $5.28 annualized dividend and a yield of 2.8%. This is a boost from Penske Automotive Group's previous quarterly dividend of $1.26. Penske Automotive Group's dividend payout ratio (DPR) is currently 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.