Penske Automotive Group, Inc. (NYSE:PAG) Given Average Rating of "Moderate Buy" by Brokerages

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Penske Automotive Group, Inc. (NYSE:PAG - Get Free Report) has been given an average rating of "Moderate Buy" by the six ratings firms that are covering the firm, Marketbeat Ratings reports. Two research analysts have rated the stock with a hold rating and four have issued a buy rating on the company. The average 1-year price target among analysts that have covered the stock in the last year is $181.00.

Several brokerages have recently weighed in on PAG. Citigroup increased their target price on shares of Penske Automotive Group from $185.00 to $195.00 and gave the stock a "buy" rating in a research note on Monday, May 19th. 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. 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. Bank of America increased their target price on shares of Penske Automotive Group from $190.00 to $205.00 and gave the stock a "buy" rating in a research note on Monday, June 16th. Finally, Morgan Stanley reiterated an "overweight" rating and set a $190.00 target price (up previously from $180.00) on shares of Penske Automotive Group in a research note on Thursday.

Penske Automotive Group Stock Performance

NYSE PAG opened at $180.77 on Tuesday. The company has a debt-to-equity ratio of 0.16, a current ratio of 0.90 and a quick ratio of 0.21. Penske Automotive Group has a 1 year low of $134.05 and a 1 year high of $186.55. The company has a market capitalization of $11.94 billion, a PE ratio of 12.58 and a beta of 0.87. The company has a fifty day moving average of $174.63 and a two-hundred day moving average of $164.31.

Penske Automotive Group (NYSE:PAG - Get Free Report) last released its quarterly earnings data on Wednesday, July 30th. The company reported $3.78 earnings per share (EPS) for the quarter, beating 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 during the quarter, compared to the consensus estimate of $7.98 billion. During the same quarter in the prior year, the firm posted $3.61 earnings per share. Penske Automotive Group's revenue for the quarter was down .4% on a year-over-year basis. As a group, analysts expect that Penske Automotive Group will post 13.86 earnings per share for the current year.

Penske Automotive Group Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Wednesday, September 3rd. Investors of record on Friday, August 15th will be given a $1.32 dividend. The ex-dividend date is Friday, August 15th. This is an increase from Penske Automotive Group's previous quarterly dividend of $1.26. This represents a $5.28 dividend on an annualized basis and a yield of 2.9%. Penske Automotive Group's payout ratio is 36.74%.

Penske Automotive Group announced that its Board of Directors has approved a share buyback plan on Wednesday, May 14th that permits the company to repurchase $250.00 million in shares. This repurchase authorization permits the company to reacquire up to 2.3% of its stock through open market purchases. Stock repurchase plans are usually an indication that the company's leadership believes its shares are undervalued.

Insider Activity at Penske Automotive Group

In related news, EVP Shane M. Spradlin sold 3,158 shares of the firm'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 completion of the sale, the executive vice president 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 sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, Director Greg C. Smith sold 1,529 shares of the firm'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. Insiders sold a total of 82,044 shares of company stock worth $13,257,948 over the last 90 days. Company insiders own 52.40% of the company's stock.

Institutional Investors Weigh In On Penske Automotive Group

A number of hedge funds have recently added to or reduced their stakes in PAG. Public Employees Retirement System of Ohio boosted its stake in shares of Penske Automotive Group by 1.1% during the 2nd quarter. Public Employees Retirement System of Ohio now owns 5,740 shares of the company's stock worth $986,000 after acquiring an additional 60 shares in the last quarter. Martingale Asset Management L P raised its holdings in Penske Automotive Group by 3.7% during the first quarter. Martingale Asset Management L P now owns 1,750 shares of the company's stock worth $252,000 after purchasing an additional 63 shares during the last quarter. UMB Bank n.a. raised its holdings in Penske Automotive Group by 18.6% during the second quarter. UMB Bank n.a. now owns 402 shares of the company's stock worth $69,000 after purchasing an additional 63 shares during the last quarter. Voya Investment Management LLC raised its holdings in Penske Automotive Group by 2.9% during the first quarter. Voya Investment Management LLC now owns 2,306 shares of the company's stock worth $332,000 after purchasing an additional 65 shares during the last quarter. Finally, California State Teachers Retirement System raised its holdings in Penske Automotive Group by 0.4% during the second quarter. California State Teachers Retirement System now owns 18,434 shares of the company's stock worth $3,167,000 after purchasing an additional 65 shares during the last quarter. Institutional investors and hedge funds own 77.08% of the company's stock.

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.

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