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

Key Points

• Analysts maintain a “Moderate Buy” consensus on Penske Automotive Group, split evenly between five buy and five hold ratings. The average 12-month price target is $202.25, below the stock’s reported $217.35 price.
• Penske exceeded quarterly expectations, reporting $3.62 in EPS versus the $3.42 consensus and $8.51 billion in revenue, up 11.1% year over year. Shares remain near their 52-week high of $227.
• The company raised its quarterly dividend to $1.44 per share, or $5.76 annually, representing a 2.7% yield. Institutional investors own 77.08% of the stock, while insiders own 52.90%.

Penske Automotive Group, Inc. (NYSE:PAG - Get Free Report) has received an average recommendation of "Moderate Buy" from the ten ratings firms that are covering the stock, Marketbeat reports. Five analysts have rated the stock with a hold rating and five have issued a buy rating on the company. The average 1-year price target among brokerages that have issued ratings on the stock in the last year is $202.25.

Several equities analysts recently commented on the stock. Benchmark cut shares of Penske Automotive Group from a "buy" rating to a "hold" rating in a research note on Wednesday, July 22nd. Stephens increased their target price on shares of Penske Automotive Group from $166.00 to $210.00 and gave the stock an "equal weight" rating in a research note on Monday. Barclays raised their price target on shares of Penske Automotive Group from $190.00 to $220.00 and gave the company an "overweight" rating in a report on Wednesday, July 15th. Weiss Ratings upgraded shares of Penske Automotive Group from a "hold (c+)" rating to a "buy (b-)" rating in a research report on Friday, July 10th. Finally, UBS Group set a $190.00 price target on shares of Penske Automotive Group in a report on Friday, July 10th.

Insider Activity

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

Institutional Inflows and Outflows

Institutional investors have recently modified their holdings of the stock. Parallel Advisors LLC boosted its stake in Penske Automotive Group by 15.1% in the first quarter. Parallel Advisors LLC now owns 441 shares of the company's stock worth $66,000 after buying an additional 58 shares in the last quarter. California State Teachers Retirement System raised its stake in shares of Penske Automotive Group by 0.4% during the second quarter. California State Teachers Retirement System now owns 18,434 shares of the company's stock worth $3,167,000 after acquiring an additional 65 shares in the last quarter. Bessemer Group Inc. lifted its holdings in shares of Penske Automotive Group by 8.5% in the 1st quarter. Bessemer Group Inc. now owns 830 shares of the company's stock worth $124,000 after acquiring an additional 65 shares during the last quarter. Rothschild Investment LLC lifted its holdings in shares of Penske Automotive Group by 37.5% in the 4th quarter. Rothschild Investment LLC now owns 242 shares of the company's stock worth $38,000 after acquiring an additional 66 shares during the last quarter. Finally, Focus Partners Advisor Solutions LLC boosted its stake in shares of Penske Automotive Group by 2.7% in the 4th quarter. Focus Partners Advisor Solutions LLC now owns 2,630 shares of the company's stock valued at $416,000 after purchasing an additional 70 shares in the last quarter. 77.08% of the stock is currently owned by institutional investors.

Penske Automotive Group Stock Up 0.0%

Shares of NYSE PAG opened at $217.35 on Tuesday. The company has a quick ratio of 0.21, a current ratio of 0.98 and a debt-to-equity ratio of 0.36. The company has a market cap of $14.29 billion, a P/E ratio of 16.01, a P/E/G ratio of 2.92 and a beta of 0.84. Penske Automotive Group has a 52 week low of $140.12 and a 52 week high of $227.00. The business has a 50-day simple moving average of $187.70 and a two-hundred day simple moving average of $169.26.

Penske Automotive Group (NYSE:PAG - Get Free Report) last announced its quarterly earnings results on Wednesday, July 29th. The company reported $3.62 earnings per share for the quarter, beating the consensus estimate of $3.42 by $0.20. Penske Automotive Group had a return on equity of 14.78% and a net margin of 2.81%.The firm had revenue of $8.51 billion for the quarter, compared to analysts' expectations of $7.98 billion. During the same period in the prior year, the business posted $3.78 earnings per share. The company's revenue was up 11.1% on a year-over-year basis. Research analysts anticipate that Penske Automotive Group will post 13.48 earnings per share for the current fiscal year.

Penske Automotive Group Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Tuesday, September 1st. Investors of record on Friday, August 14th will be given a dividend of $1.44 per share. The ex-dividend date is Friday, August 14th. This is a positive change from Penske Automotive Group's previous quarterly dividend of $1.42. This represents a $5.76 annualized dividend and a yield of 2.7%. Penske Automotive Group's dividend payout ratio (DPR) is presently 41.83%.

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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