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

Other hedge funds and other institutional 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% during the 1st quarter. UMB Bank n.a. now owns 339 shares of the company's stock worth $49,000 after purchasing an additional 274 shares during the period. GAMMA Investing LLC boosted its stake 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 buying an additional 136 shares during the period. Brooklyn Investment Group grew its position in shares of Penske Automotive Group by 353.0% during the first quarter. Brooklyn Investment Group now owns 453 shares of the company's stock worth $65,000 after buying an additional 353 shares in the last quarter. Fifth Third Bancorp increased its stake in shares of Penske Automotive Group by 31.0% during the first quarter. Fifth Third Bancorp now owns 528 shares of the company's stock worth $76,000 after buying an additional 125 shares during the period. Finally, State of Wyoming purchased a new stake in shares of Penske Automotive Group during the fourth quarter worth approximately $105,000. 77.08% of the stock is currently owned by hedge funds and other institutional investors.

Insider Buying and Selling

In other Penske Automotive Group news, EVP Shane M. Spradlin sold 3,158 shares of Penske Automotive Group stock in a transaction on Monday, June 9th. The shares were 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 approximately $6,040,999.20. The trade was a 8.03% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, Director Lisa Ann Davis sold 1,604 shares of the stock in a transaction dated Monday, August 18th. The stock was sold at an average price of $180.74, for a total transaction of $289,906.96. Following the sale, the director owned 1,529 shares of the company's stock, valued at $276,351.46. This trade represents a 51.20% decrease in their position. The disclosure for this sale can be found here. Insiders sold a total of 5,862 shares of company stock worth $1,018,414 in the last 90 days. Company insiders own 52.40% of the company's stock.

Penske Automotive Group Stock Performance

Shares of PAG stock traded up $0.77 during mid-day trading on Friday, hitting $187.35. 160,253 shares of the stock were exchanged, compared to its average volume of 180,747. The stock's fifty day simple moving average is $178.51 and its two-hundred day simple moving average is $165.90. 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 12-month low of $134.05 and a 12-month high of $189.51. The stock has a market capitalization of $12.37 billion, a price-to-earnings ratio of 13.04 and a beta of 0.89.

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 (EPS) for the quarter, beating analysts' consensus estimates of $3.56 by $0.22. The firm had revenue of $7.66 billion during 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 business's revenue was down .4% on a year-over-year basis. During the same period in the prior year, the firm earned $3.61 EPS. On average, analysts forecast that Penske Automotive Group, Inc. will post 13.86 EPS for the current year.

Penske Automotive Group declared that its board has initiated a share buyback plan on Wednesday, May 14th that authorizes the company to repurchase $250.00 million in outstanding shares. This repurchase authorization authorizes the company to reacquire up to 2.3% of its shares through open market purchases. Shares repurchase plans are typically an indication that the company's management believes its stock is undervalued.

Penske Automotive Group Increases Dividend

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

Analysts Set New Price Targets

A number of research analysts recently issued reports on PAG shares. JPMorgan Chase & Co. upgraded shares of 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 research note on Tuesday, August 5th. Bank of America lifted their price objective on shares of Penske Automotive Group from $190.00 to $205.00 and gave the stock a "buy" rating in a research report on Monday, June 16th. Stephens reiterated an "equal weight" rating and set a $140.00 target price on shares of Penske Automotive Group in a research note on Wednesday, June 11th. 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. Finally, Citigroup lifted their price target on Penske Automotive Group from $185.00 to $195.00 and gave the stock a "buy" rating in a report on Monday, May 19th. Four research analysts have rated the stock with a Buy rating and two have issued a Hold rating to the company. According to data from MarketBeat, the stock has an average rating of "Moderate Buy" and a consensus price target of $181.00.

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.