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

Key Points

• Penske Automotive Group has received a consensus recommendation of "Moderate Buy" from analysts, with a 1-year price target averaging $184.33.
• The company recently increased its quarterly dividend to $1.32 per share, yielding approximately 3.1% for shareholders.
• Penske Automotive reported $3.78 EPS for its last quarter, exceeding the consensus estimate by $0.22, despite a slight revenue decline compared to the previous year.

Shares of Penske Automotive Group, Inc. (NYSE:PAG - Get Free Report) have been assigned a consensus recommendation of "Moderate Buy" from the seven analysts that are currently covering the stock, MarketBeat Ratings reports. Two research analysts have rated the stock with a hold rating and five have assigned a buy rating to the company. The average 1 year price target among analysts that have issued a report on the stock in the last year is $184.3333.

Several research analysts have issued reports on the stock. Morgan Stanley lifted their price target on shares of Penske Automotive Group from $180.00 to $190.00 and gave the stock an "overweight" rating in a research report on Thursday, August 14th. Bank of America lifted their price target on shares of Penske Automotive Group from $190.00 to $205.00 and gave the stock a "buy" rating in a research report on Monday, June 16th. Benchmark lifted their price target on shares of Penske Automotive Group from $185.00 to $190.00 and gave the stock a "buy" rating in a research report on Wednesday, September 17th. Stephens restated an "equal weight" rating and issued a $140.00 price target on shares of Penske Automotive Group in a research report on Wednesday, June 11th. Finally, Citigroup lifted their price target on shares of Penske Automotive Group from $200.00 to $206.00 and gave the stock a "buy" rating in a research report on Thursday, September 25th.

Insider Activity at Penske Automotive Group

In other Penske Automotive Group news, CFO Michelle Hulgrave sold 1,100 shares of Penske Automotive Group stock in a transaction that occurred on Tuesday, August 19th. The shares were sold at an average price of $182.55, for a total transaction of $200,805.00. Following the transaction, the chief financial officer directly owned 18,922 shares in the company, valued at approximately $3,454,211.10. The trade was a 5.49% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, Director Lisa Ann Davis sold 1,604 shares of Penske Automotive Group stock in a transaction that occurred on Monday, August 18th. The stock was sold at an average price of $180.74, for a total transaction of $289,906.96. Following the transaction, the director owned 1,529 shares in the company, valued at approximately $276,351.46. The trade was a 51.20% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders own 52.40% of the company's stock.

Hedge Funds Weigh In On Penske Automotive Group

Institutional investors and hedge funds have recently added to or reduced their stakes in the company. Sound Income Strategies LLC purchased a new position in Penske Automotive Group during the 2nd quarter worth approximately $34,000. Acadian Asset Management LLC purchased a new position in shares of Penske Automotive Group during the 1st quarter valued at $42,000. UMB Bank n.a. grew its holdings in shares of Penske Automotive Group by 421.5% during the 1st quarter. UMB Bank n.a. now owns 339 shares of the company's stock valued at $49,000 after acquiring an additional 274 shares in the last quarter. GAMMA Investing LLC grew its holdings in shares of Penske Automotive Group by 51.9% during the 1st quarter. GAMMA Investing LLC now owns 398 shares of the company's stock valued at $57,000 after acquiring an additional 136 shares in the last quarter. Finally, Brooklyn Investment Group grew its holdings in shares of Penske Automotive Group by 353.0% during the 1st quarter. Brooklyn Investment Group now owns 453 shares of the company's stock valued at $65,000 after acquiring an additional 353 shares in the last quarter. 77.08% of the stock is currently owned by hedge funds and other institutional investors.

Penske Automotive Group Price Performance

Shares of NYSE:PAG opened at $169.39 on Wednesday. Penske Automotive Group has a 12 month low of $134.05 and a 12 month high of $189.51. The stock has a market cap of $11.19 billion, a price-to-earnings ratio of 11.79 and a beta of 0.88. The stock's 50 day moving average price is $178.94 and its 200 day moving average price is $168.42. 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 (NYSE:PAG - Get Free Report) last announced its earnings results on Wednesday, July 30th. The company reported $3.78 EPS for the quarter, topping the consensus estimate of $3.56 by $0.22. The firm had revenue of $7.66 billion for the quarter, compared to analysts' expectations of $7.98 billion. Penske Automotive Group had a return on equity of 17.43% and a net margin of 3.13%.The firm's quarterly revenue was down .4% compared to the same quarter last year. During the same quarter in the previous year, the company earned $3.61 earnings per share. Equities research analysts anticipate that Penske Automotive Group 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 was paid on Wednesday, September 3rd. Shareholders of record on Friday, August 15th were given a dividend of $1.32 per share. This represents a $5.28 annualized dividend and a yield of 3.1%. The ex-dividend date was Friday, August 15th. This is a positive change from Penske Automotive Group's previous quarterly dividend of $1.26. Penske Automotive Group's dividend payout ratio is presently 36.74%.

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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