Royal Bank of Canada Cuts Holdings in Penske Automotive Group, Inc. $PAG

Key Points

• Royal Bank of Canada cut its Penske Automotive Group stake by 34.6% in the first quarter, selling 14,466 shares and retaining 27,383 shares valued at approximately $4.1 million. Institutional investors collectively own 77.08% of PAG.
• PAG’s latest quarterly results exceeded expectations, with EPS of $3.62 versus $3.42 expected and revenue of $8.51 billion, up 11.1% year over year. The company also raised its quarterly dividend to $1.44, equivalent to a 2.6% annual yield.
• Analyst sentiment remains favorable but mixed: PAG has a consensus rating of “Moderate Buy” and an average price target of $207.88, while recent insider sales and several downward earnings-estimate revisions provide counterpoints to the bullish outlook.

Royal Bank of Canada lowered its position in Penske Automotive Group, Inc. (NYSE:PAG - Free Report) by 34.6% during the first quarter, according to its most recent disclosure with the Securities and Exchange Commission. The fund owned 27,383 shares of the company's stock after selling 14,466 shares during the quarter. Royal Bank of Canada's holdings in Penske Automotive Group were worth $4,094,000 as of its most recent filing with the Securities and Exchange Commission.

Other institutional investors have also recently added to or reduced their stakes in the company. Empowered Funds LLC raised its holdings in shares of Penske Automotive Group by 25.4% in the 1st quarter. Empowered Funds LLC now owns 2,115 shares of the company's stock worth $316,000 after purchasing an additional 429 shares during the period. SummitTX Capital L.P. lifted its stake in shares of Penske Automotive Group by 177.5% in the 1st quarter. SummitTX Capital L.P. now owns 11,164 shares of the company's stock valued at $1,669,000 after purchasing an additional 7,141 shares in the last quarter. Blue Chip Partners LLC grew its holdings in shares of Penske Automotive Group by 0.9% during the 1st quarter. Blue Chip Partners LLC now owns 10,412 shares of the company's stock worth $1,557,000 after purchasing an additional 90 shares during the period. Renaissance Technologies LLC grew its holdings in shares of Penske Automotive Group by 15.6% during the 1st quarter. Renaissance Technologies LLC now owns 81,500 shares of the company's stock worth $12,186,000 after purchasing an additional 11,000 shares during the period. Finally, Capula Management Ltd acquired a new stake in Penske Automotive Group during the 1st quarter worth approximately $481,000. Hedge funds and other institutional investors own 77.08% of the company's stock.

Penske Automotive Group News Roundup

Here are the key news stories impacting Penske Automotive Group this week:

• Positive Sentiment: Zacks raised its FY2026 EPS estimate to $13.65 from $13.43, above the current consensus estimate of $13.61. The firm also increased Q3 2026 EPS to $3.48 from $3.47, supporting the view that Penske’s earnings outlook remains resilient. Penske Automotive Group estimates
• Positive Sentiment: Longer-term forecasts were also raised: Q2 2027 EPS increased to $3.55 from $3.49, Q2 2028 EPS to $3.76 from $3.64, and FY2028 EPS to $15.03 from $14.94. These upgrades may provide a bullish counterweight to the reductions in other periods. Penske Automotive Group estimates
• Neutral Sentiment: The revisions are limited to analyst estimates rather than a new company announcement or change in operating guidance. Investors may therefore view the overall impact as modest, particularly after PAG’s recent quarterly results exceeded EPS and revenue expectations. Penske Automotive Group financial results
• Negative Sentiment: Zacks lowered several forecasts, including FY2027 EPS to $14.15 from $14.30, Q1 2027 EPS to $3.38 from $3.45, Q3 2027 EPS to $3.57 from $3.66, Q4 2027 EPS to $3.65 from $3.70, Q1 2028 EPS to $3.70 from $3.71, and Q4 2026 EPS to $3.50 from $3.53. The reductions indicate some pressure on portions of the earnings outlook. Penske Automotive Group estimate changes

Insider Activity

In related news, CFO Michelle Hulgrave sold 1,500 shares of the business's stock in a transaction dated Tuesday, June 2nd. The stock was sold at an average price of $171.80, for a total value of $257,700.00. Following the transaction, the chief financial officer owned 17,596 shares in the company, valued at approximately $3,022,992.80. The trade was a 7.86% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, Director Greg C. Smith sold 1,488 shares of the stock in a transaction dated Monday, May 18th. The shares were sold at an average price of $160.02, for a total value of $238,109.76. The disclosure for this sale is available in the SEC filing. 52.90% of the stock is owned by company insiders.

Analysts Set New Price Targets

A number of research analysts have weighed in on PAG shares. Morgan Stanley reaffirmed an "overweight" rating and set a $190.00 price target on shares of Penske Automotive Group in a research report on Thursday, May 7th. Citigroup lowered shares of Penske Automotive Group from a "buy" rating to a "neutral" rating and increased their price objective for the stock from $199.00 to $210.00 in a research report on Thursday, July 23rd. Barclays lifted their target price on shares of Penske Automotive Group from $190.00 to $220.00 and gave the company an "overweight" rating in a report on Wednesday, July 15th. JPMorgan Chase & Co. increased their price target on Penske Automotive Group from $170.00 to $215.00 and gave the company a "neutral" rating in a report on Tuesday, August 4th. Finally, UBS Group set a $190.00 price objective on Penske Automotive Group in a research report on Friday, July 10th. Five investment analysts have rated the stock with a Buy rating and five have given a Hold rating to the company's stock. According to MarketBeat, the company presently has a consensus rating of "Moderate Buy" and an average target price of $207.88.

Penske Automotive Group Trading Up 0.6%

NYSE PAG opened at $219.96 on Friday. The stock has a market cap of $14.44 billion, a P/E ratio of 16.20, a PEG ratio of 2.91 and a beta of 0.84. The company's fifty day simple moving average is $196.28 and its 200-day simple moving average is $172.62. The company has a current ratio of 0.98, a quick ratio of 0.21 and a debt-to-equity ratio of 0.36. Penske Automotive Group, Inc. has a 52 week low of $140.12 and a 52 week high of $227.00.

Penske Automotive Group (NYSE:PAG - Get Free Report) last released its quarterly earnings results on Wednesday, July 29th. The company reported $3.62 earnings per share for the quarter, beating analysts' consensus estimates of $3.42 by $0.20. Penske Automotive Group had a net margin of 2.81% and a return on equity of 14.78%. The business had revenue of $8.51 billion during the quarter, compared to analyst estimates of $7.98 billion. During the same period last year, the business earned $3.78 EPS. The business's revenue was up 11.1% on a year-over-year basis. Equities research analysts predict that Penske Automotive Group, Inc. will post 13.61 EPS for the current fiscal year.

Penske Automotive Group Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Tuesday, September 1st. Shareholders of record on Friday, August 14th will be given a $1.44 dividend. This represents a $5.76 dividend on an annualized basis and a yield of 2.6%. The ex-dividend date of this dividend is Friday, August 14th. This is an increase from Penske Automotive Group's previous quarterly dividend of $1.42. Penske Automotive Group's dividend payout ratio is currently 41.83%.

Penske Automotive Group Profile

Penske Automotive Group, Inc NYSE: PAG, headquartered in Bloomfield Township, Michigan, is an international transportation services company primarily focused on automotive and commercial truck dealerships. The company retails new and pre-owned vehicles across a broad spectrum of brands, while offering parts, maintenance, collision repair and reconditioning services. In addition, Penske provides financing and insurance products through its integrated finance and insurance operations, supporting both retail customers and commercial clients.

Formed in 1990 as United Auto Group and publicly traded since 1999, Penske Automotive Group has grown through organic expansion and strategic acquisitions to establish a network of dealerships and service centers across the United States and Europe.

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