Penske Automotive Group, Inc. $PAG Shares Sold by Versor Investments LP

Key Points

• Versor Investments LP has reduced its stake in Penske Automotive Group by 37.2%, selling 1,713 shares and now holding 2,893 shares valued at approximately $417,000.
• Penske Automotive Group's recent earnings report showed an EPS of $3.78, exceeding estimates, but its revenue decreased by 0.4% year-over-year.
• The company has announced a quarterly dividend increase from $1.26 to $1.32 per share, representing a yield of 2.9%.

Versor Investments LP cut its holdings in shares of Penske Automotive Group, Inc. (NYSE:PAG - Free Report) by 37.2% during the first quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission. The fund owned 2,893 shares of the company's stock after selling 1,713 shares during the period. Versor Investments LP's holdings in Penske Automotive Group were worth $417,000 at the end of the most recent reporting period.

Other hedge funds have also modified their holdings of the company. UMB Bank n.a. grew its position in shares of Penske Automotive Group by 421.5% during the first quarter. UMB Bank n.a. now owns 339 shares of the company's stock worth $49,000 after acquiring an additional 274 shares during the last quarter. GAMMA Investing LLC grew its position in shares of Penske Automotive Group by 51.9% during the first quarter. GAMMA Investing LLC now owns 398 shares of the company's stock worth $57,000 after acquiring an additional 136 shares during the last quarter. Fifth Third Bancorp grew its position 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 acquiring an additional 125 shares during the last quarter. TD Waterhouse Canada Inc. grew its position in shares of Penske Automotive Group by 42.4% during the fourth quarter. TD Waterhouse Canada Inc. now owns 531 shares of the company's stock worth $81,000 after acquiring an additional 158 shares during the last quarter. Finally, State of Wyoming purchased a new position 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 Activity at Penske Automotive Group

In other news, CEO Roger S. Penske sold 77,357 shares of the company's stock in a transaction dated Tuesday, June 3rd. The shares were sold at an average price of $161.37, for a total transaction of $12,483,099.09. Following the completion of the transaction, the chief executive officer owned 140,042 shares of the company's stock, valued at $22,598,577.54. This represents a 35.58% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this link. Also, Director Greg C. Smith sold 1,529 shares of the company's stock in a transaction dated Tuesday, June 3rd. The shares were sold at an average price of $161.64, for a total transaction of $247,147.56. The disclosure for this sale can be found here. Over the last 90 days, insiders have sold 84,748 shares of company stock worth $13,748,660. Corporate insiders own 52.40% of the company's stock.

Penske Automotive Group Trading Up 0.3%

Shares of Penske Automotive Group stock traded up $0.50 during mid-day trading on Tuesday, hitting $187.54. 164,708 shares of the stock were exchanged, compared to its average volume of 236,815. Penske Automotive Group, Inc. has a twelve month low of $134.05 and a twelve month high of $189.26. The stock has a market capitalization of $12.39 billion, a price-to-earnings ratio of 13.05 and a beta of 0.87. The company has a 50-day simple moving average of $176.57 and a 200 day simple moving average of $165.06. 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 released its quarterly earnings results on Wednesday, July 30th. The company reported $3.78 earnings per share (EPS) 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 company had revenue of $7.66 billion for the quarter, compared to analysts' expectations of $7.98 billion. During the same period last year, the company earned $3.61 EPS. The firm's revenue for the quarter was down .4% compared to the same quarter last year. Research analysts forecast that Penske Automotive Group, Inc. will post 13.86 EPS for the current year.

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

Penske Automotive Group Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Wednesday, September 3rd. Stockholders 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 dividend on an annualized basis and a dividend yield of 2.8%. This is an increase from Penske Automotive Group's previous quarterly dividend of $1.26. Penske Automotive Group's dividend payout ratio is currently 36.74%.

Analysts Set New Price Targets

A number of equities analysts recently weighed in on PAG shares. Stephens reiterated an "equal weight" rating and issued a $140.00 price objective on shares of Penske Automotive Group in a research report on Wednesday, June 11th. Bank of America raised their target price on Penske Automotive Group from $190.00 to $205.00 and gave the company a "buy" rating in a report on Monday, June 16th. Morgan Stanley lifted their price target on Penske Automotive Group from $180.00 to $190.00 and gave the stock an "overweight" rating in a research note on Thursday, August 14th. Citigroup lifted their price target on Penske Automotive Group from $185.00 to $195.00 and gave the stock a "buy" rating in a research note on Monday, May 19th. 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 research note on Tuesday, August 5th. Four equities research analysts have rated the stock with a Buy rating and two have issued a Hold rating to the company's stock. According to MarketBeat, Penske Automotive Group presently has a consensus rating of "Moderate Buy" and an average price target of $181.00.

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.