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

Key Points

• Penske Automotive Group has an average analyst rating of “Moderate Buy”, with six buy ratings and four hold ratings. The consensus 12-month price target is $188.
• Recent analyst updates were mostly positive, including Bank of America raising its target to $238 and Citigroup lifting its target to $199. UBS and JPMorgan were more cautious, both assigning neutral ratings.
• The company reported stronger-than-expected quarterly earnings, with EPS of $3.05 versus estimates of $2.91 and revenue of $7.86 billion topping forecasts. Penske also raised its quarterly dividend to $1.42 per share, implying a 3.0% yield.

Shares of Penske Automotive Group, Inc. (NYSE:PAG - Get Free Report) have earned an average rating of "Moderate Buy" from the ten ratings firms that are presently covering the firm, Marketbeat.com reports. Four analysts have rated the stock with a hold rating and six have assigned a buy rating to the company. The average 12-month target price among analysts that have issued ratings on the stock in the last year is $188.00.

Several equities analysts have weighed in on PAG shares. Citigroup raised their price target on Penske Automotive Group from $193.00 to $199.00 and gave the company a "buy" rating in a report on Wednesday, May 6th. UBS Group began coverage on Penske Automotive Group in a research report on Wednesday, May 27th. They set a "neutral" rating and a $167.00 target price for the company. Bank of America raised their target price on shares of Penske Automotive Group from $200.00 to $238.00 and gave the company a "buy" rating in a report on Thursday. JPMorgan Chase & Co. boosted their price target on shares of Penske Automotive Group from $165.00 to $170.00 and gave the stock a "neutral" rating in a research report on Thursday, May 7th. Finally, Barclays decreased their price target on shares of Penske Automotive Group from $195.00 to $190.00 and set an "overweight" rating on the stock in a research note on Tuesday, April 7th.

Insider Activity

In related news, Director Greg C. Smith sold 1,488 shares of the stock in a transaction dated Monday, May 18th. The shares were sold at an average price of $160.02, for a total value of $238,109.76. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, CFO Michelle Hulgrave sold 1,500 shares of Penske Automotive Group stock in a transaction dated Tuesday, June 2nd. The stock was sold at an average price of $171.80, for a total value of $257,700.00. Following the completion of the transaction, the chief financial officer owned 17,596 shares of the company's stock, valued at approximately $3,022,992.80. This represents a 7.86% decrease in their position. The disclosure for this sale is available in the SEC filing. 52.90% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Penske Automotive Group

Institutional investors have recently modified their holdings of the stock. Navalign LLC bought a new position in shares of Penske Automotive Group during the 4th quarter valued at approximately $26,000. International Assets Investment Management LLC bought a new stake in Penske Automotive Group in the fourth quarter worth $30,000. Rothschild Investment LLC lifted its position in Penske Automotive Group by 37.5% in the fourth quarter. Rothschild Investment LLC now owns 242 shares of the company's stock worth $38,000 after buying an additional 66 shares during the last quarter. Acadian Asset Management LLC purchased a new position in Penske Automotive Group during the first quarter worth $42,000. Finally, Versant Capital Management Inc boosted its stake in Penske Automotive Group by 179.0% during the second quarter. Versant Capital Management Inc now owns 279 shares of the company's stock worth $50,000 after buying an additional 179 shares during the period. 77.08% of the stock is owned by institutional investors.

Penske Automotive Group Stock Up 4.8%

PAG opened at $191.21 on Friday. The company has a market capitalization of $12.57 billion, a PE ratio of 14.27, a price-to-earnings-growth ratio of 2.36 and a beta of 0.87. The firm has a 50-day simple moving average of $173.56 and a two-hundred day simple moving average of $163.87. The company has a quick ratio of 0.22, a current ratio of 0.96 and a debt-to-equity ratio of 0.39. Penske Automotive Group has a 52 week low of $140.12 and a 52 week high of $191.72.

Penske Automotive Group (NYSE:PAG - Get Free Report) last issued its earnings results on Wednesday, April 29th. The company reported $3.05 earnings per share (EPS) for the quarter, topping the consensus estimate of $2.91 by $0.14. The firm had revenue of $7.86 billion for the quarter, compared to analysts' expectations of $7.71 billion. Penske Automotive Group had a return on equity of 15.13% and a net margin of 2.85%.The business's revenue was down 1.1% compared to the same quarter last year. During the same period in the previous year, the firm posted $3.66 earnings per share. Analysts forecast that Penske Automotive Group will post 13.46 earnings per share for the current fiscal year.

Penske Automotive Group Increases Dividend

The firm also recently announced a quarterly dividend, which was paid on Wednesday, June 3rd. Stockholders of record on Tuesday, May 26th were issued a $1.42 dividend. This is a boost from Penske Automotive Group's previous quarterly dividend of $1.40. The ex-dividend date was Tuesday, May 26th. This represents a $5.68 dividend on an annualized basis and a dividend yield of 3.0%. Penske Automotive Group's payout ratio is presently 42.39%.

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.

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