Petrus Trust Company LTA Acquires New Position in Penske Automotive Group, Inc. $PAG

Key Points

• Petrus Trust Company LTA has initiated a new investment, acquiring 3,584 shares of Penske Automotive Group, Inc. valued at approximately $516,000.
• Institutional investors are increasing their stakes in Penske Automotive Group, with notable purchases by Nuveen LLC, Moran Wealth Management, and GAMMA Investing LLC, contributing to a total institutional ownership of 77.08%.
• Penske Automotive Group recently announced an increase in its quarterly dividend from $1.26 to $1.32 per share, representing an annualized yield of 2.8% and a payout ratio of 36.74%.

Petrus Trust Company LTA acquired a new position in shares of Penske Automotive Group, Inc. (NYSE:PAG - Free Report) during the first quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The institutional investor acquired 3,584 shares of the company's stock, valued at approximately $516,000.

Other large investors have also recently bought and sold shares of the company. UMB Bank n.a. increased 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 buying an additional 274 shares during the last quarter. GAMMA Investing LLC increased 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 buying an additional 136 shares during the last quarter. Brooklyn Investment Group increased its holdings in Penske Automotive Group by 353.0% in the first quarter. Brooklyn Investment Group now owns 453 shares of the company's stock valued at $65,000 after buying an additional 353 shares during the last quarter. Fifth Third Bancorp increased its holdings in Penske Automotive Group by 31.0% in the first 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 last quarter. Finally, State of Wyoming purchased a new position in Penske Automotive Group in the fourth quarter valued at $105,000. Hedge funds and other institutional investors own 77.08% of the company's stock.

Penske Automotive Group Stock Performance

Shares of PAG traded up $1.27 during mid-day trading on Thursday, hitting $185.50. 173,935 shares of the company's stock were exchanged, compared to its average volume of 236,061. Penske Automotive Group, Inc. has a fifty-two week low of $134.05 and a fifty-two week high of $189.51. The firm has a market capitalization of $12.25 billion, a P/E ratio of 12.91 and a beta of 0.89. The business's 50 day moving average is $179.01 and its two-hundred day moving average is $166.33. The company has a current ratio of 0.90, a quick ratio of 0.21 and a debt-to-equity ratio of 0.16.

Penske Automotive Group (NYSE:PAG - Get Free Report) last announced its earnings results 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. Penske Automotive Group had a net margin of 3.13% and a return on equity of 17.43%. The business had revenue of $7.66 billion during the quarter, compared to the consensus estimate of $7.98 billion. During the same quarter in the prior year, the firm earned $3.61 earnings per share. The business's quarterly revenue was down .4% compared to the same quarter last year. On average, equities analysts expect 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 was paid on Wednesday, September 3rd. Stockholders of record on Friday, August 15th were paid a dividend of $1.32 per share. This represents a $5.28 annualized dividend and a dividend yield of 2.8%. This is a positive change from Penske Automotive Group's previous quarterly dividend of $1.26. The ex-dividend date was Friday, August 15th. Penske Automotive Group's payout ratio is currently 36.74%.

Penske Automotive Group announced that its Board of Directors has approved a share buyback plan on Wednesday, May 14th that permits the company to repurchase $250.00 million in shares. This repurchase authorization permits the company to reacquire up to 2.3% of its stock through open market purchases. Stock repurchase plans are usually an indication that the company's leadership believes its shares are undervalued.

Wall Street Analysts Forecast Growth

Several equities analysts recently commented on the company. 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 report on Thursday, August 14th. 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. Citigroup raised their price objective on Penske Automotive Group from $185.00 to $195.00 and gave the stock a "buy" rating in a report on Monday, May 19th. Bank of America raised their price objective on Penske Automotive Group from $190.00 to $205.00 and gave the stock a "buy" rating in a report on Monday, June 16th. Finally, JPMorgan Chase & Co. raised Penske Automotive Group from an "underweight" rating to a "neutral" rating and raised their price objective for the stock from $155.00 to $175.00 in a report on Tuesday, August 5th. Four research analysts have rated the stock with a Buy rating and two have issued a Hold rating to the stock. Based on data from MarketBeat, the company presently has an average rating of "Moderate Buy" and a consensus price target of $181.00.

Insider Activity

In related news, Director Lisa Ann Davis sold 1,604 shares of the firm'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 completion of the sale, the director owned 1,529 shares in the company, valued at $276,351.46. This trade represents a 51.20% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, CFO Michelle Hulgrave sold 1,100 shares of the firm's stock in a transaction dated 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 sale, the chief financial officer owned 18,922 shares of the company's stock, valued at approximately $3,454,211.10. The trade was a 5.49% decrease in their position. The disclosure for this sale can be found here. 51.70% of the stock is currently owned by corporate insiders.

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.