Penske Automotive Group, Inc. (NYSE:PAG) Raises Dividend to $1.32 Per Share

Penske Automotive Group, Inc. (NYSE:PAG - Get Free Report) announced a quarterly dividend on Thursday, July 24th, Wall Street Journal reports. Shareholders of record on Friday, August 15th will be paid a dividend of 1.32 per share on Wednesday, September 3rd. This represents a $5.28 annualized dividend and a yield of 3.09%. The ex-dividend date is Friday, August 15th. This is a 4.8% increase from Penske Automotive Group's previous quarterly dividend of $1.26.

Penske Automotive Group has a dividend payout ratio of 34.9% indicating that its dividend is sufficiently covered by earnings. Equities analysts expect Penske Automotive Group to earn $14.38 per share next year, which means the company should continue to be able to cover its $5.04 annual dividend with an expected future payout ratio of 35.0%.

Penske Automotive Group Trading Down 2.5%

Shares of NYSE PAG traded down $4.42 during mid-day trading on Monday, reaching $170.60. 232,404 shares of the company's stock were exchanged, compared to its average volume of 215,474. The firm has a market capitalization of $11.29 billion, a price-to-earnings ratio of 12.01 and a beta of 0.91. Penske Automotive Group has a 52-week low of $134.05 and a 52-week high of $186.33. The company has a debt-to-equity ratio of 0.18, a quick ratio of 0.23 and a current ratio of 0.90. The company's 50-day moving average is $170.93 and its 200-day moving average is $162.73.

Penske Automotive Group (NYSE:PAG - Get Free Report) last released its earnings results on Wednesday, April 30th. The company reported $3.39 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $3.27 by $0.12. The firm had revenue of $7.60 billion during the quarter, compared to analyst estimates of $7.68 billion. Penske Automotive Group had a return on equity of 17.80% and a net margin of 3.10%. Penske Automotive Group's revenue was up 2.1% compared to the same quarter last year. During the same period last year, the business posted $3.21 earnings per share. Analysts expect that Penske Automotive Group will post 13.86 EPS for the current fiscal year.

Insider Transactions at Penske Automotive Group

In other news, CEO Roger S. Penske sold 77,357 shares of the stock in a transaction dated Tuesday, June 3rd. The shares were sold at an average price of $161.37, for a total transaction of $12,483,099.09. Following the transaction, the chief executive officer owned 140,042 shares of the company's stock, valued at $22,598,577.54. This represents a 35.58% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, EVP Shane M. Spradlin sold 3,158 shares of the stock in a transaction dated Monday, June 9th. The shares were sold at an average price of $167.10, for a total transaction of $527,701.80. Following the completion of the sale, the executive vice president owned 36,152 shares of the company's stock, valued at approximately $6,040,999.20. This trade represents a 8.03% decrease in their position. The disclosure for this sale can be found here. Insiders sold a total of 82,044 shares of company stock worth $13,257,948 over the last quarter. Company insiders own 52.40% of the company's stock.

Hedge Funds Weigh In On Penske Automotive Group

A number of hedge funds have recently modified their holdings of PAG. Goldman Sachs Group Inc. increased its position in Penske Automotive Group by 28.4% during the 1st quarter. Goldman Sachs Group Inc. now owns 380,267 shares of the company's stock valued at $54,751,000 after purchasing an additional 84,045 shares during the period. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC lifted its stake in shares of 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 purchasing an additional 3,100 shares during the period. Finally, Acadian Asset Management LLC acquired a new stake in shares of Penske Automotive Group in the first quarter valued at about $42,000. Hedge funds and other institutional investors own 77.08% of the company's stock.

Analysts Set New Price Targets

A number of analysts recently commented on the company. Stephens reaffirmed an "equal weight" rating and set a $140.00 price objective on shares of Penske Automotive Group in a research note on Wednesday, June 11th. Wall Street Zen upgraded Penske Automotive Group from a "hold" rating to a "buy" rating in a report on Wednesday, April 23rd. Bank of America lifted their target price on Penske Automotive Group from $190.00 to $205.00 and gave the stock a "buy" rating in a research report on Monday, June 16th. JPMorgan Chase & Co. reduced their price objective on Penske Automotive Group from $160.00 to $155.00 and set an "underweight" rating for the company in a research report on Thursday, July 17th. Finally, Citigroup boosted their price objective on Penske Automotive Group from $185.00 to $195.00 and gave the stock a "buy" rating in a research note on Monday, May 19th. One research analyst has rated the stock with a sell rating, one has assigned a hold rating and five have assigned a buy rating to the company's stock. Based on data from MarketBeat, Penske Automotive Group currently has a consensus rating of "Moderate Buy" and a consensus price target of $175.00.

Penske Automotive Group declared that its Board of Directors has authorized a share buyback program on Wednesday, May 14th that allows the company to buyback $250.00 million in outstanding shares. This buyback authorization allows the company to buy up to 2.3% of its shares through open market purchases. Shares buyback programs are typically a sign that the company's board of directors believes its stock is undervalued.

Penske Automotive Group Company Profile

Penske Automotive Group, Inc, a diversified transportation services company, operates automotive and commercial truck dealerships worldwide. The company operates through four segments: Retail Automotive, Retail Commercial Truck, Other, and Non-Automotive Investments. It operates dealerships under franchise agreements with various automotive manufacturers and distributors.