Penske Automotive Group (NYSE:PAG) Hits New 52-Week High - What's Next?

Key Points

• Penske Automotive Group's stock reached a new 52-week high of $189.51 during trading, reflecting strong market interest.
• Analysts have increased their price targets for the stock, with Bank of America setting theirs at $205.00 and Citigroup at $195.00, indicating positive sentiment towards the company's future performance.
• The company has announced a quarterly dividend increase to $1.32 per share and authorized a stock buyback program worth $250 million, demonstrating confidence in its financial health.

Penske Automotive Group, Inc. (NYSE:PAG - Get Free Report)'s stock price reached a new 52-week high during trading on Thursday . The stock traded as high as $189.51 and last traded at $188.22, with a volume of 218694 shares trading hands. The stock had previously closed at $187.25.

Analyst Ratings Changes

Several equities research analysts have commented on PAG shares. Citigroup increased their price objective on shares of Penske Automotive Group from $185.00 to $195.00 and gave the company a "buy" rating in a research note on Monday, May 19th. JPMorgan Chase & Co. raised shares of Penske Automotive Group from an "underweight" rating to a "neutral" rating and increased their target price for the company from $155.00 to $175.00 in a research report on Tuesday, August 5th. Bank of America increased their target price on shares of Penske Automotive Group from $190.00 to $205.00 and gave the company a "buy" rating in a research report on Monday, June 16th. Stephens reissued an "equal weight" rating and set a $140.00 target price on shares of Penske Automotive Group in a research report on Wednesday, June 11th. Finally, Morgan Stanley increased their target price on shares of Penske Automotive Group from $180.00 to $190.00 and gave the company an "overweight" rating in a research report on Thursday, August 14th. Four equities research analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the company. According to data from MarketBeat, the stock currently has an average rating of "Moderate Buy" and an average price target of $181.00.

Penske Automotive Group Stock Down 1.4%

The stock's 50-day moving average price is $177.49 and its two-hundred day moving average price is $165.42. The stock has a market capitalization of $12.17 billion, a P/E ratio of 12.83 and a beta of 0.89. The company has a current ratio of 0.90, a quick ratio of 0.21 and a debt-to-equity ratio of 0.16.

Penske Automotive Group (NYSE:PAG - Get Free Report) last released its quarterly earnings data on Wednesday, July 30th. The company reported $3.78 EPS for the quarter, topping the consensus estimate of $3.56 by $0.22. The company had revenue of $7.66 billion during the quarter, compared to the consensus estimate of $7.98 billion. Penske Automotive Group had a net margin of 3.13% and a return on equity of 17.43%. Penske Automotive Group's revenue for the quarter was down .4% on a year-over-year basis. During the same period last year, the firm earned $3.61 EPS. As a group, research analysts expect that Penske Automotive Group, Inc. will post 13.86 earnings per share for the current fiscal year.

Penske Automotive Group Increases Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Wednesday, September 3rd. Investors of record on Friday, August 15th will be issued a $1.32 dividend. This is a boost from Penske Automotive Group's previous quarterly dividend of $1.26. The ex-dividend date of this dividend is Friday, August 15th. This represents a $5.28 annualized dividend and a yield of 2.9%. Penske Automotive Group's payout ratio is 36.74%.

Penske Automotive Group declared that its board has approved a stock buyback program on Wednesday, May 14th that allows the company to repurchase $250.00 million in shares. This repurchase authorization allows the company to purchase up to 2.3% of its shares through open market purchases. Shares repurchase programs are often an indication that the company's management believes its shares are undervalued.

Insider Buying and Selling

In related news, CFO Michelle Hulgrave sold 1,100 shares of the firm's stock in a transaction that occurred on Tuesday, August 19th. The shares were sold at an average price of $182.55, for a total value of $200,805.00. Following the completion of the transaction, the chief financial officer directly owned 18,922 shares of the company's stock, valued at approximately $3,454,211.10. This trade represents a 5.49% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, Director Greg C. Smith sold 1,529 shares of the firm's stock in a transaction that occurred on Tuesday, June 3rd. The stock was sold at an average price of $161.64, for a total transaction of $247,147.56. The disclosure for this sale can be found here. Insiders sold 84,748 shares of company stock worth $13,748,660 in the last 90 days. 52.40% of the stock is currently owned by company insiders.

Institutional Trading of Penske Automotive Group

Several institutional investors and hedge funds have recently bought and sold shares of the company. Vanguard Group Inc. lifted its stake in Penske Automotive Group by 0.3% in the 1st quarter. Vanguard Group Inc. now owns 2,004,832 shares of the company's stock worth $288,656,000 after purchasing an additional 5,641 shares in the last quarter. Burgundy Asset Management Ltd. lifted its stake in Penske Automotive Group by 3.1% in the 2nd quarter. Burgundy Asset Management Ltd. now owns 890,356 shares of the company's stock worth $152,972,000 after purchasing an additional 26,827 shares in the last quarter. AQR Capital Management LLC lifted its stake in Penske Automotive Group by 21.1% in the 2nd quarter. AQR Capital Management LLC now owns 681,741 shares of the company's stock worth $116,953,000 after purchasing an additional 118,976 shares in the last quarter. Goldman Sachs Group Inc. lifted 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 worth $54,751,000 after purchasing an additional 84,045 shares in the last quarter. Finally, Invesco Ltd. lifted its stake in Penske Automotive Group by 3.4% in the 1st quarter. Invesco Ltd. now owns 223,630 shares of the company's stock worth $32,198,000 after purchasing an additional 7,276 shares in the last quarter. 77.08% of the stock is currently owned by hedge funds and other institutional investors.

About Penske Automotive Group

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.