Penske Automotive Group (NYSE:PAG) Stock Price Expected to Rise, Bank of America Analyst Says

Penske Automotive Group (NYSE:PAG - Get Free Report) had its target price lifted by analysts at Bank of America from $190.00 to $205.00 in a research report issued to clients and investors on Monday,Benzinga reports. The firm currently has a "buy" rating on the stock. Bank of America's price target points to a potential upside of 20.46% from the company's previous close.

A number of other analysts have also weighed in on PAG. Stephens restated 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. JPMorgan Chase & Co. cut their price target on shares of Penske Automotive Group from $165.00 to $140.00 and set an "underweight" rating on the stock in a report on Thursday, March 27th. Wall Street Zen upgraded shares of Penske Automotive Group from a "hold" rating to a "buy" rating in a report on Wednesday, April 23rd. Finally, Citigroup upped their price objective on Penske Automotive Group from $185.00 to $195.00 and gave the company a "buy" rating in a research report on Monday, May 19th. One equities research analyst has rated the stock with a sell rating, one has given a hold rating and five have given a buy rating to the stock. Based on data from MarketBeat.com, Penske Automotive Group has a consensus rating of "Moderate Buy" and an average price target of $172.00.

Penske Automotive Group Stock Up 0.5%

NYSE:PAG traded up $0.90 during trading hours on Monday, reaching $170.19. 318,667 shares of the company traded hands, compared to its average volume of 203,219. The company has a current ratio of 0.90, a quick ratio of 0.23 and a debt-to-equity ratio of 0.18. The business's 50-day moving average price is $160.98 and its two-hundred day moving average price is $159.43. Penske Automotive Group has a 1 year low of $134.05 and a 1 year high of $180.12. The stock has a market capitalization of $11.26 billion, a P/E ratio of 11.98, a P/E/G ratio of 1.63 and a beta of 0.91.

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

Penske Automotive Group declared that its board has authorized a stock repurchase plan on Wednesday, May 14th that authorizes the company to buyback $250.00 million in shares. This buyback authorization authorizes the company to repurchase up to 2.3% of its shares through open market purchases. Shares buyback plans are typically a sign that the company's leadership believes its shares are undervalued.

Insider Activity

In other news, Director Greg C. Smith sold 1,529 shares of the stock in a transaction on Tuesday, June 3rd. The stock was sold at an average price of $161.64, for a total transaction of $247,147.56. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. Also, EVP Shane M. Spradlin sold 3,158 shares of the firm's stock in a transaction on Monday, June 9th. The stock was sold at an average price of $167.10, for a total value of $527,701.80. Following the completion of the transaction, the executive vice president now owns 36,152 shares in the company, valued at approximately $6,040,999.20. This trade represents a 8.03% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold 82,044 shares of company stock valued at $13,257,948 over the last three months. Insiders own 51.70% of the company's stock.

Institutional Inflows and Outflows

Institutional investors have recently bought and sold shares of the company. Norges Bank bought a new stake in shares of Penske Automotive Group during the 4th quarter valued at about $22,049,000. Moran Wealth Management LLC purchased a new position in shares of Penske Automotive Group in the fourth quarter worth approximately $14,157,000. Goldman Sachs Group Inc. boosted its holdings in shares of Penske Automotive Group by 28.4% in the first quarter. Goldman Sachs Group Inc. now owns 380,267 shares of the company's stock worth $54,751,000 after buying an additional 84,045 shares during the last quarter. Nuveen LLC bought a new stake in Penske Automotive Group during the first quarter valued at approximately $10,004,000. Finally, GAMMA Investing LLC increased its holdings in Penske Automotive Group by 21,771.8% during the first quarter. GAMMA Investing LLC now owns 57,304 shares of the company's stock valued at $8,251,000 after buying an additional 57,042 shares during the last quarter. Institutional investors own 77.08% of the company's stock.

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.