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

Key Points

• Penske Automotive Group has an average analyst recommendation of “Moderate Buy”, with six buy ratings and three hold ratings among nine covering brokerages. The average 1-year price target is about $184.86.
• The stock rose 1.6% and opened at $158.92, while the company reported better-than-expected quarterly results, with EPS of $3.05 versus estimates of $2.91 and revenue of $7.86 billion.
• Penske also raised its quarterly dividend to $1.42 per share from $1.40, which implies an annualized payout of $5.68 and a 3.6% yield.

Penske Automotive Group, Inc. (NYSE:PAG - Get Free Report) has been assigned an average recommendation of "Moderate Buy" from the nine brokerages that are currently covering the firm, MarketBeat Ratings reports. Three research analysts have rated the stock with a hold recommendation and six have given a buy recommendation to the company. The average 1 year target price among analysts that have issued a report on the stock in the last year is $184.8571.

A number of analysts have commented on PAG shares. Morgan Stanley reaffirmed an "overweight" rating and set a $190.00 price target on shares of Penske Automotive Group in a research report on Thursday, May 7th. Barclays reduced their price target on Penske Automotive Group from $195.00 to $190.00 and set an "overweight" rating for the company in a report on Tuesday, April 7th. JPMorgan Chase & Co. boosted their price objective on Penske Automotive Group from $165.00 to $170.00 and gave the stock a "neutral" rating in a research note on Thursday, May 7th. Stephens boosted their price objective on Penske Automotive Group from $155.00 to $160.00 and gave the stock an "equal weight" rating in a research note on Monday, May 4th. Finally, Citigroup lifted their price objective on Penske Automotive Group from $193.00 to $199.00 and gave the stock a "buy" rating in a research report on Wednesday, May 6th.

Penske Automotive Group Stock Up 1.6%

Shares of PAG stock opened at $158.92 on Thursday. Penske Automotive Group has a 1-year low of $140.12 and a 1-year high of $189.51. The stock's fifty day moving average price is $156.27 and its 200 day moving average price is $160.27. The company has a debt-to-equity ratio of 0.39, a current ratio of 0.96 and a quick ratio of 0.22. The company has a market cap of $10.45 billion, a price-to-earnings ratio of 11.86, a price-to-earnings-growth ratio of 2.03 and a beta of 0.90.

Penske Automotive Group (NYSE:PAG - Get Free Report) last issued its quarterly earnings results on Wednesday, April 29th. The company reported $3.05 EPS for the quarter, topping analysts' consensus estimates of $2.91 by $0.14. Penske Automotive Group had a return on equity of 15.13% and a net margin of 2.85%.The company had revenue of $7.86 billion during the quarter, compared to analysts' expectations of $7.71 billion. During the same quarter in the previous year, the firm posted $3.66 EPS. The firm's revenue was down 1.1% compared to the same quarter last year. On average, research analysts expect that Penske Automotive Group will post 13.44 earnings per share for the current fiscal year.

Penske Automotive Group Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Wednesday, June 3rd. Shareholders of record on Tuesday, May 26th will be paid a dividend of $1.42 per share. This represents a $5.68 dividend on an annualized basis and a yield of 3.6%. This is an increase from Penske Automotive Group's previous quarterly dividend of $1.40. The ex-dividend date of this dividend is Tuesday, May 26th. Penske Automotive Group's dividend payout ratio is presently 41.79%.

Insiders Place Their Bets

In related news, Director Greg C. Smith sold 1,488 shares of the stock in a transaction that occurred on Monday, May 18th. The stock was sold at an average price of $160.02, for a total value of $238,109.76. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. Insiders own 52.90% of the company's stock.

Institutional Inflows and Outflows

Hedge funds have recently added to or reduced their stakes in the business. Bank of America Corp DE lifted its stake in Penske Automotive Group by 4.5% during the first quarter. Bank of America Corp DE now owns 463,784 shares of the company's stock worth $69,345,000 after purchasing an additional 19,850 shares in the last quarter. California State Teachers Retirement System raised its stake in Penske Automotive Group by 30.0% in the first quarter. California State Teachers Retirement System now owns 24,384 shares of the company's stock valued at $3,646,000 after buying an additional 5,627 shares in the last quarter. Empowered Funds LLC raised its stake in Penske Automotive Group by 25.4% in the first quarter. Empowered Funds LLC now owns 2,115 shares of the company's stock valued at $316,000 after buying an additional 429 shares in the last quarter. SummitTX Capital L.P. raised its stake in Penske Automotive Group by 177.5% in the first quarter. SummitTX Capital L.P. now owns 11,164 shares of the company's stock valued at $1,669,000 after buying an additional 7,141 shares in the last quarter. Finally, Blue Chip Partners LLC raised its stake in Penske Automotive Group by 0.9% in the first quarter. Blue Chip Partners LLC now owns 10,412 shares of the company's stock valued at $1,557,000 after buying an additional 90 shares in the last quarter. 77.08% of the stock is currently owned by hedge funds and other institutional investors.

Penske Automotive Group Company Profile

Penske Automotive Group, Inc NYSE: PAG, headquartered in Bloomfield Township, Michigan, is an international transportation services company primarily focused on automotive and commercial truck dealerships. The company retails new and pre-owned vehicles across a broad spectrum of brands, while offering parts, maintenance, collision repair and reconditioning services. In addition, Penske provides financing and insurance products through its integrated finance and insurance operations, supporting both retail customers and commercial clients.

Formed in 1990 as United Auto Group and publicly traded since 1999, Penske Automotive Group has grown through organic expansion and strategic acquisitions to establish a network of dealerships and service centers across the United States and Europe.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.