Penske Automotive Group, Inc. (NYSE:PAG) Receives Consensus Rating of "Moderate Buy" from Analysts

Key Points

• Analysts give Penske Automotive a consensus rating of Moderate Buy from nine firms (six buys, three holds) with an average 12‑month price target of $180.43.
• The company missed EPS expectations ($2.91 vs. $3.19 consensus) while reporting revenue of $7.77 billion (slightly above estimates) and revenue was down 3.8% year‑over‑year.
• Penske raised its quarterly dividend to $1.40 (annualized $5.60) for a 3.5% yield

Penske Automotive Group, Inc. (NYSE:PAG - Get Free Report) has been given a consensus rating of "Moderate Buy" by the nine ratings firms that are presently covering the firm, MarketBeat reports. Three equities research analysts have rated the stock with a hold recommendation and six have issued a buy recommendation on the company. The average 12 month price target among analysts that have issued a report on the stock in the last year is $180.4286.

A number of equities analysts have recently commented on the stock. Weiss Ratings cut shares of Penske Automotive Group from a "buy (b-)" rating to a "hold (c+)" rating in a report on Monday, March 16th. Citigroup cut their target price on shares of Penske Automotive Group from $200.00 to $193.00 and set a "buy" rating on the stock in a report on Wednesday, April 8th. Barclays cut their target price on shares of Penske Automotive Group from $195.00 to $190.00 and set an "overweight" rating on the stock in a report on Tuesday, April 7th. Finally, JPMorgan Chase & Co. cut their target price on shares of Penske Automotive Group from $170.00 to $165.00 and set a "neutral" rating on the stock in a report on Friday, April 17th.

Penske Automotive Group Stock Performance

Shares of Penske Automotive Group stock opened at $160.76 on Friday. The firm's fifty day simple moving average is $154.61 and its 200-day simple moving average is $160.42. The stock has a market capitalization of $10.57 billion, a price-to-earnings ratio of 11.91, a PEG ratio of 2.10 and a beta of 0.87. Penske Automotive Group has a 12 month low of $140.12 and a 12 month high of $189.51. The company has a debt-to-equity ratio of 0.32, a current ratio of 0.99 and a quick ratio of 0.22.

Penske Automotive Group (NYSE:PAG - Get Free Report) last announced its earnings results on Wednesday, February 11th. The company reported $2.91 EPS for the quarter, missing analysts' consensus estimates of $3.19 by ($0.28). The business had revenue of $7.77 billion during the quarter, compared to analyst estimates of $7.62 billion. Penske Automotive Group had a net margin of 2.91% and a return on equity of 15.77%. The business's revenue was down 3.8% compared to the same quarter last year. During the same period in the previous year, the firm earned $3.54 earnings per share. As a group, equities analysts forecast that Penske Automotive Group will post 13.5 earnings per share for the current year.

Penske Automotive Group Increases Dividend

The company also recently disclosed a quarterly dividend, which was paid on Thursday, March 5th. Shareholders of record on Wednesday, February 25th were paid a $1.40 dividend. The ex-dividend date of this dividend was Wednesday, February 25th. This represents a $5.60 annualized dividend and a yield of 3.5%. This is an increase from Penske Automotive Group's previous quarterly dividend of $1.38. Penske Automotive Group's dividend payout ratio is presently 41.48%.

Hedge Funds Weigh In On Penske Automotive Group

Several institutional investors have recently bought and sold shares of PAG. Goldman Sachs Group Inc. increased its stake in Penske Automotive Group by 28.4% in the 1st quarter. Goldman Sachs Group Inc. now owns 380,267 shares of the company's stock valued at $54,751,000 after buying an additional 84,045 shares during the period. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC increased its stake in Penske Automotive Group by 4.7% in the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 68,884 shares of the company's stock valued at $9,918,000 after buying an additional 3,100 shares during the period. Acadian Asset Management LLC acquired a new position in Penske Automotive Group in the 1st quarter valued at $42,000. EverSource Wealth Advisors LLC increased its stake in Penske Automotive Group by 506.9% in the 2nd quarter. EverSource Wealth Advisors LLC now owns 880 shares of the company's stock valued at $151,000 after buying an additional 735 shares during the period. Finally, Brown Advisory Inc. increased its stake in Penske Automotive Group by 47.0% in the 2nd quarter. Brown Advisory Inc. now owns 3,108 shares of the company's stock valued at $534,000 after buying an additional 994 shares during the period. 77.08% of the stock is owned by institutional investors and hedge funds.

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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