JPMorgan Chase & Co. Has Lowered Expectations for Penske Automotive Group (NYSE:PAG) Stock Price

Penske Automotive Group (NYSE:PAG - Get Free Report) had its price objective reduced by investment analysts at JPMorgan Chase & Co. from $160.00 to $155.00 in a report issued on Thursday,Benzinga reports. The firm currently has an "underweight" rating on the stock. JPMorgan Chase & Co.'s target price would suggest a potential downside of 5.76% from the stock's previous close.

A number of other analysts have also issued reports on PAG. Stephens reiterated an "equal weight" rating and issued a $140.00 price target on shares of Penske Automotive Group in a report on Wednesday, June 11th. Wall Street Zen upgraded Penske Automotive Group from a "hold" rating to a "buy" rating in a report on Wednesday, April 23rd. Citigroup increased 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. Finally, Bank of America lifted their price objective on Penske Automotive Group from $190.00 to $205.00 and gave the company a "buy" rating in a report on Monday, June 16th. One analyst has rated the stock with a sell rating, one has assigned a hold rating and five have assigned a buy rating to the company's stock. Based on data from MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and a consensus price target of $175.00.

Penske Automotive Group Trading Down 6.2%

Penske Automotive Group stock traded down $10.88 during mid-day trading on Thursday, hitting $164.48. The company's stock had a trading volume of 259,969 shares, compared to its average volume of 205,553. The company has a debt-to-equity ratio of 0.18, a quick ratio of 0.23 and a current ratio of 0.90. The company has a 50 day moving average of $170.11 and a 200-day moving average of $161.72. Penske Automotive Group has a one year low of $134.05 and a one year high of $186.33. The stock has a market cap of $10.88 billion, a PE ratio of 11.60, a P/E/G ratio of 1.72 and a beta of 0.91.

Penske Automotive Group (NYSE:PAG - Get Free Report) last posted its quarterly earnings results on Wednesday, April 30th. The company reported $3.39 EPS for the quarter, topping the consensus estimate of $3.27 by $0.12. Penske Automotive Group had a net margin of 3.10% and a return on equity of 17.80%. The company had revenue of $7.60 billion for the quarter, compared to the consensus estimate of $7.68 billion. During the same quarter last year, the firm posted $3.21 EPS. The firm's revenue was up 2.1% compared to the same quarter last year. On average, research analysts anticipate that Penske Automotive Group will post 13.86 EPS for the current year.

Penske Automotive Group declared that its Board of Directors has initiated a share repurchase program on Wednesday, May 14th that permits the company to repurchase $250.00 million in outstanding shares. This repurchase authorization permits the company to reacquire up to 2.3% of its shares through open market purchases. Shares repurchase programs are often an indication that the company's leadership believes its shares are undervalued.

Insider Buying and Selling

In other news, Director Greg C. Smith sold 1,529 shares of the firm's stock in a transaction on Tuesday, June 3rd. The stock was sold at an average price of $161.64, for a total value of $247,147.56. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, EVP Shane M. Spradlin sold 3,158 shares of the company's stock in a transaction dated 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 $6,040,999.20. This represents a 8.03% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold a total of 82,044 shares of company stock worth $13,257,948 in the last 90 days. 51.70% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Penske Automotive Group

Several institutional investors have recently added to or reduced their stakes in PAG. Sound Income Strategies LLC purchased a new position in shares of Penske Automotive Group in the 2nd quarter valued at approximately $34,000. Whittier Trust Co. of Nevada Inc. acquired a new position in shares of Penske Automotive Group in the 4th quarter valued at $40,000. Acadian Asset Management LLC acquired a new position in shares of Penske Automotive Group in the 1st quarter valued at $42,000. UMB Bank n.a. raised its stake in Penske Automotive Group by 421.5% in the 1st 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. Finally, GAMMA Investing LLC lifted its position in Penske Automotive Group by 51.9% during the 1st quarter. GAMMA Investing LLC now owns 398 shares of the company's stock worth $57,000 after acquiring an additional 136 shares during the period. Institutional investors and hedge funds own 77.08% of the company's stock.

About Penske Automotive Group

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.

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