Quarry LP Takes $218,000 Position in Penske Automotive Group, Inc. $PAG

Key Points

• Quarry LP has taken a new position in Penske Automotive Group, acquiring 1,516 shares valued at approximately $218,000 during the first quarter of 2023.
• Penske Automotive Group reported an earnings per share (EPS) of $3.78 for the recent quarter, exceeding the consensus estimate of $3.56, despite revenue of $7.66 billion falling short of analyst expectations.
• The company declared a quarterly dividend of $1.32, which will result in an annualized yield of 2.9%, an increase from the previous quarterly dividend of $1.26.

Quarry LP purchased a new position in shares of Penske Automotive Group, Inc. (NYSE:PAG - Free Report) during the 1st quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The institutional investor purchased 1,516 shares of the company's stock, valued at approximately $218,000.

A number of other hedge funds have also made changes to their positions in PAG. UMB Bank n.a. increased its holdings in shares of Penske Automotive Group by 421.5% in the 1st 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 boosted its position in shares of Penske Automotive Group by 51.9% in the 1st 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 boosted its position 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 period. Fifth Third Bancorp lifted its position in Penske Automotive Group by 31.0% during the 1st quarter. Fifth Third Bancorp now owns 528 shares of the company's stock worth $76,000 after acquiring an additional 125 shares during the period. Finally, State of Wyoming acquired a new stake in shares of Penske Automotive Group in the 4th quarter valued at approximately $105,000. Hedge funds and other institutional investors own 77.08% of the company's stock.

Penske Automotive Group Trading Up 0.4%

Penske Automotive Group stock traded up $0.77 during midday trading on Friday, reaching $187.35. The stock had a trading volume of 160,253 shares, compared to its average volume of 179,128. Penske Automotive Group, Inc. has a twelve month low of $134.05 and a twelve month high of $189.51. The stock has a market capitalization of $12.37 billion, a PE ratio of 13.04 and a beta of 0.89. The company has a debt-to-equity ratio of 0.16, a quick ratio of 0.21 and a current ratio of 0.90. The stock's 50-day simple moving average is $178.51 and its 200 day simple moving average is $165.92.

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

Penske Automotive Group Increases Dividend

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

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

Analysts Set New Price Targets

Several equities analysts recently weighed in on PAG shares. Morgan Stanley raised their price objective 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. Bank of America raised their price target on Penske Automotive Group from $190.00 to $205.00 and gave the stock a "buy" rating in a research report on Monday, June 16th. JPMorgan Chase & Co. raised Penske Automotive Group from an "underweight" rating to a "neutral" rating and raised their price target for the stock from $155.00 to $175.00 in a research report on Tuesday, August 5th. Stephens reissued an "equal weight" rating and set a $140.00 price target on shares of Penske Automotive Group in a research report on Wednesday, June 11th. Finally, 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. Four analysts have rated the stock with a Buy rating and two have issued a Hold rating to the company. Based on data from MarketBeat, the company presently has a consensus rating of "Moderate Buy" and a consensus target price of $181.00.

Insiders Place Their Bets

In other news, EVP Shane M. Spradlin sold 3,158 shares of Penske Automotive Group stock in a transaction dated Monday, June 9th. The stock was 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 of the company's stock, valued at approximately $6,040,999.20. The trade was a 8.03% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, CFO Michelle Hulgrave sold 1,100 shares of the business's stock in a transaction dated Tuesday, August 19th. The shares were sold at an average price of $182.55, for a total value of $200,805.00. Following the completion of the sale, the chief financial officer directly owned 18,922 shares of the company's stock, valued at approximately $3,454,211.10. This represents a 5.49% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold a total of 5,862 shares of company stock worth $1,018,414 over the last quarter. 51.70% of the stock is owned by corporate insiders.

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.