Brokerages Set Penske Automotive Group, Inc. (NYSE:PAG) Target Price at $175.00

Shares of Penske Automotive Group, Inc. (NYSE:PAG - Get Free Report) have been assigned a consensus rating of "Moderate Buy" from the six analysts that are currently covering the firm, MarketBeat Ratings reports. One equities research analyst has rated the stock with a sell recommendation, one has given a hold recommendation and four have assigned a buy recommendation to the company. The average 1 year price objective among brokers that have updated their coverage on the stock in the last year is $175.00.

A number of equities research analysts have issued reports on the company. Wall Street Zen upgraded Penske Automotive Group from a "hold" rating to a "buy" rating in a research note on Wednesday, April 23rd. JPMorgan Chase & Co. cut their target price on Penske Automotive Group from $160.00 to $155.00 and set an "underweight" rating on the stock in a research note on Thursday, July 17th. Stephens reiterated an "equal weight" rating and issued a $140.00 target price on shares of Penske Automotive Group in a research note on Wednesday, June 11th. Citigroup raised their price target on Penske Automotive Group from $185.00 to $195.00 and gave the company a "buy" rating in a report on Monday, May 19th. Finally, Bank of America raised their price target on Penske Automotive Group from $190.00 to $205.00 and gave the company a "buy" rating in a report on Monday, June 16th.

Penske Automotive Group Stock Up 2.5%

NYSE:PAG traded up $4.21 during trading hours on Friday, hitting $175.01. The stock had a trading volume of 218,915 shares, compared to its average volume of 219,103. The company has a current ratio of 0.90, a quick ratio of 0.23 and a debt-to-equity ratio of 0.18. Penske Automotive Group has a 1-year low of $134.05 and a 1-year high of $186.33. The business has a 50 day simple moving average of $170.75 and a two-hundred day simple moving average of $162.43. The company has a market cap of $11.58 billion, a PE ratio of 12.32 and a beta of 0.91.

Penske Automotive Group (NYSE:PAG - Get Free Report) last released its earnings results on Wednesday, April 30th. The company reported $3.39 EPS for the quarter, beating the consensus estimate of $3.27 by $0.12. The company had revenue of $7.60 billion during the quarter, compared to analysts' expectations of $7.68 billion. Penske Automotive Group had a return on equity of 17.80% and a net margin of 3.10%. The business's revenue was up 2.1% on a year-over-year basis. During the same period in the prior year, the business posted $3.21 EPS. Analysts predict that Penske Automotive Group will post 13.86 EPS 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. Stockholders of record on Friday, August 15th will be given a dividend of $1.32 per share. The ex-dividend date of this dividend is Friday, August 15th. This is a boost from Penske Automotive Group's previous quarterly dividend of $1.26. This represents a $5.28 dividend on an annualized basis and a dividend yield of 3.02%. Penske Automotive Group's payout ratio is currently 35.49%.

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

Insider Activity at Penske Automotive Group

In other Penske Automotive Group news, CEO Roger S. Penske sold 77,357 shares of the business's stock in a transaction on Tuesday, June 3rd. The stock was sold at an average price of $161.37, for a total value of $12,483,099.09. Following the transaction, the chief executive officer owned 140,042 shares of the company's stock, valued at approximately $22,598,577.54. The trade was a 35.58% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, Director Greg C. Smith sold 1,529 shares of the business'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 disclosure for this sale can be found here. Insiders have sold a total of 82,044 shares of company stock valued at $13,257,948 in the last 90 days. 51.70% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

A number of hedge funds have recently modified their holdings of the company. Sound Income Strategies LLC acquired a new stake in shares of Penske Automotive Group in the second quarter valued at approximately $34,000. Acadian Asset Management LLC acquired a new stake in shares of Penske Automotive Group in the first quarter valued at approximately $42,000. UMB Bank n.a. lifted its position in shares of Penske Automotive Group by 421.5% in the first quarter. UMB Bank n.a. now owns 339 shares of the company's stock valued at $49,000 after buying an additional 274 shares during the last quarter. GAMMA Investing LLC lifted its holdings 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 purchasing an additional 136 shares during the last quarter. Finally, Brooklyn Investment Group lifted its holdings in Penske Automotive Group by 353.0% during the 1st quarter. Brooklyn Investment Group now owns 453 shares of the company's stock worth $65,000 after purchasing an additional 353 shares during the last quarter. 77.08% of the stock is currently owned by institutional investors.

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.