Penske Automotive Group, Inc. (NYSE:PAG) Plans Quarterly Dividend of $1.44

Key Points

• Penske Automotive Group announced a quarterly dividend of $1.44 per share, payable on September 1 to stockholders of record on August 14. The new payout is a 1.4% increase from the prior quarter and implies a 2.7% yield.
• The company has raised its dividend for 6 straight years and has increased it by an average of 0.4% annually over the past three years. Its 39.3% payout ratio suggests the dividend remains well covered by earnings.
• Investor attention is also focused on a reported take-private proposal from Penske Corporation and Mitsui at about $210 per share, which could offer a premium to the recent stock price. At the same time, Citigroup downgraded PAG to neutral while lifting its price target to $210.

Penske Automotive Group, Inc. (NYSE:PAG - Get Free Report) announced a quarterly dividend on Thursday, July 23rd. Stockholders of record on Friday, August 14th will be paid a dividend of 1.44 per share on Tuesday, September 1st. This represents a c) annualized dividend and a dividend yield of 2.7%. The ex-dividend date is Friday, August 14th. This is a 1.4% increase from Penske Automotive Group's previous quarterly dividend of $1.42.

Penske Automotive Group has increased its dividend by an average of 0.4%per year over the last three years and has increased its dividend annually for the last 6 consecutive years. Penske Automotive Group has a payout ratio of 39.3% indicating that its dividend is sufficiently covered by earnings. Equities analysts expect Penske Automotive Group to earn $14.46 per share next year, which means the company should continue to be able to cover its $5.68 annual dividend with an expected future payout ratio of 39.3%.

Penske Automotive Group Price Performance

Shares of PAG traded up $1.14 during trading hours on Thursday, reaching $215.71. 859,867 shares of the company traded hands, compared to its average volume of 315,461. The stock has a market capitalization of $14.18 billion, a PE ratio of 16.10, a price-to-earnings-growth ratio of 2.53 and a beta of 0.87. The stock has a fifty day simple moving average of $178.72 and a 200 day simple moving average of $166.13. Penske Automotive Group has a fifty-two week low of $140.12 and a fifty-two week high of $219.09. 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 (NYSE:PAG - Get Free Report) last announced its earnings results on Wednesday, April 29th. The company reported $3.05 earnings per share for the quarter, beating the consensus estimate of $2.91 by $0.14. The firm had revenue of $7.86 billion during the quarter, compared to the consensus estimate of $7.71 billion. Penske Automotive Group had a net margin of 2.85% and a return on equity of 15.13%. The firm's revenue for the quarter was down 1.1% on a year-over-year basis. During the same quarter in the previous year, the company posted $3.66 EPS. As a group, research analysts predict that Penske Automotive Group will post 13.43 EPS for the current fiscal year.

More Penske Automotive Group News

Here are the key news stories impacting Penske Automotive Group this week:

• Positive Sentiment: Penske Automotive confirmed it received an unsolicited, preliminary, non-binding proposal from Penske Corporation and Mitsui to take the company private at about $210 per share, suggesting a potential premium over the recent trading price. Penske Automotive confirms receipt of unsolicited preliminary and non-binding take private proposal
• Positive Sentiment: The company announced a 23rd consecutive quarterly dividend increase, lifting the payout to $1.44 per share, which signals continued confidence in cash generation and capital returns. Penske Automotive announces 23rd quarterly dividend increase
• Neutral Sentiment: Citigroup downgraded PAG from buy to neutral while raising its price target to $210, implying limited upside versus the current market valuation. Citigroup downgrade coverage
• Neutral Sentiment: Analyst commentary also suggested the stock has already reacted sharply to the takeover speculation, which may cap near-term gains if no formal deal emerges. Penske (PAG) Soars 9.9%: Is Further Upside Left in the Stock?

About Penske Automotive Group

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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