Victory Capital Management Inc. Sells 11,380 Shares of Penske Automotive Group, Inc. (NYSE:PAG)

Key Points

• Victory Capital Management Inc. reduced its stake in Penske Automotive Group by 27.8%, now holding 29,618 shares valued at approximately $4.26 million.
• Penske Automotive Group recently announced a $250 million stock repurchase program, indicating management's belief that the stock is undervalued.
• The company has increased its quarterly dividend to $1.32 per share, representing an annualized dividend yield of 3.02%.

Victory Capital Management Inc. cut its holdings in shares of Penske Automotive Group, Inc. (NYSE:PAG - Free Report) by 27.8% during the 1st quarter, according to the company in its most recent filing with the Securities and Exchange Commission (SEC). The firm owned 29,618 shares of the company's stock after selling 11,380 shares during the period. Victory Capital Management Inc.'s holdings in Penske Automotive Group were worth $4,264,000 at the end of the most recent quarter.

Several other hedge funds have also added to or reduced their stakes in the business. State of Michigan Retirement System boosted its position in Penske Automotive Group by 2.3% during the 1st quarter. State of Michigan Retirement System now owns 4,500 shares of the company's stock worth $648,000 after buying an additional 100 shares during the period. Securian Asset Management Inc. raised its holdings in Penske Automotive Group by 7.4% during the 1st quarter. Securian Asset Management Inc. now owns 1,447 shares of the company's stock worth $208,000 after purchasing an additional 100 shares during the last quarter. Bessemer Group Inc. raised its holdings in Penske Automotive Group by 0.3% during the 4th quarter. Bessemer Group Inc. now owns 35,579 shares of the company's stock worth $5,424,000 after purchasing an additional 120 shares during the last quarter. Fifth Third Bancorp raised its holdings 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 purchasing an additional 125 shares during the last quarter. Finally, Pacific Global Investment Management Co. raised its holdings in Penske Automotive Group by 1.1% during the 1st quarter. Pacific Global Investment Management Co. now owns 11,953 shares of the company's stock worth $1,721,000 after purchasing an additional 135 shares during the last quarter. 77.08% of the stock is currently owned by institutional investors and hedge funds.

Wall Street Analysts Forecast Growth

Several research firms have issued reports on PAG. JPMorgan Chase & Co. lowered their price target on shares of Penske Automotive Group from $160.00 to $155.00 and set an "underweight" rating for the company in a report on Thursday, July 17th. Stephens restated an "equal weight" rating and set a $140.00 price target on shares of Penske Automotive Group in a report on Wednesday, June 11th. Wall Street Zen upgraded shares of Penske Automotive Group from a "hold" rating to a "buy" rating in a research note on Wednesday, April 23rd. Bank of America lifted their price objective on shares of Penske Automotive Group from $190.00 to $205.00 and gave the company a "buy" rating in a research note on Monday, June 16th. Finally, Citigroup lifted their price objective on shares of Penske Automotive Group from $185.00 to $195.00 and gave the company a "buy" rating in a research note on Monday, May 19th. One analyst has rated the stock with a sell rating, one has assigned a hold rating and five have given a buy rating to the company. Based on data from MarketBeat.com, Penske Automotive Group presently has a consensus rating of "Moderate Buy" and an average price target of $175.00.

Insiders Place Their Bets

In related news, Director Greg C. Smith sold 1,529 shares of the business's stock in a transaction dated Tuesday, June 3rd. The shares were sold at an average price of $161.64, for a total value of $247,147.56. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, EVP Shane M. Spradlin sold 3,158 shares of the business's 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 completion of the transaction, the executive vice president directly owned 36,152 shares in the company, valued at $6,040,999.20. This trade represents a 8.03% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold 82,044 shares of company stock valued at $13,257,948 in the last three months. 52.40% of the stock is currently owned by insiders.

Penske Automotive Group Stock Down 2.4%

PAG stock traded down $4.08 during midday trading on Tuesday, reaching $166.17. 140,107 shares of the company's stock traded hands, compared to its average volume of 240,065. The company has a market cap of $11.00 billion, a price-to-earnings ratio of 11.73 and a beta of 0.91. The firm's fifty day moving average price is $171.00 and its 200-day moving average price is $162.87. The company has a quick ratio of 0.23, a current ratio of 0.90 and a debt-to-equity ratio of 0.18. Penske Automotive Group, Inc. has a 52 week low of $134.05 and a 52 week high of $186.33.

Penske Automotive Group (NYSE:PAG - Get Free Report) last posted its quarterly earnings data on Wednesday, April 30th. The company reported $3.39 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $3.27 by $0.12. The firm had revenue of $7.60 billion for the quarter, compared to the consensus estimate of $7.68 billion. Penske Automotive Group had a net margin of 3.10% and a return on equity of 17.80%. The business's revenue for the quarter was up 2.1% compared to the same quarter last year. During the same period in the previous year, the firm earned $3.21 EPS. As a group, sell-side analysts forecast that Penske Automotive Group, Inc. will post 13.86 earnings per share for the current fiscal year.

Penske Automotive Group Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Wednesday, September 3rd. Shareholders of record on Friday, August 15th will be issued a dividend of $1.32 per share. This represents a $5.28 dividend on an annualized basis and a yield of 3.18%. This is an increase from Penske Automotive Group's previous quarterly dividend of $1.26. The ex-dividend date is Friday, August 15th. Penske Automotive Group's payout ratio is currently 35.49%.

Penske Automotive Group declared that its Board of Directors has authorized a share buyback program on Wednesday, May 14th that authorizes the company to repurchase $250.00 million in outstanding shares. This repurchase authorization authorizes the company to purchase up to 2.3% of its shares through open market purchases. Shares repurchase programs are often a sign that the company's board believes its shares are undervalued.

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.