Penske Automotive Group (NYSE:PAG) Upgraded to "Neutral" at JPMorgan Chase & Co.

Key Points

• Penske Automotive Group has been upgraded to a "neutral" rating by JPMorgan Chase & Co., with a target price of $175, indicating a potential upside of 3.70% from its latest close.
• Bank of America also recently raised its target price for the company from $190 to $205, giving it a "buy" rating, further supporting the positive shift in analyst outlook.
• Over the past ninety days, insiders at Penske Automotive Group have sold a total of 82,044 shares, which raises questions about the company’s internal confidence as they represent a significant decrease in their positions.

JPMorgan Chase & Co. upgraded shares of Penske Automotive Group (NYSE:PAG - Free Report) from an underweight rating to a neutral rating in a research note published on Tuesday, Marketbeat Ratings reports. They currently have $175.00 price target on the stock, up from their prior price target of $155.00.

Several other analysts also recently weighed in on the stock. Wall Street Zen raised shares of Penske Automotive Group from a "hold" rating to a "buy" rating in a research note on Wednesday, April 23rd. Stephens reissued an "equal weight" rating and issued a $140.00 price target on shares of Penske Automotive Group in a research note on Wednesday, June 11th. Bank of America upped their price objective on shares of Penske Automotive Group from $190.00 to $205.00 and gave the company a "buy" rating in a research note on Monday, June 16th. Finally, Citigroup upped 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. Two investment analysts have rated the stock with a hold rating and five have given a buy rating to the company's stock. Based on data from MarketBeat, the stock has an average rating of "Moderate Buy" and a consensus target price of $179.00.

Penske Automotive Group Trading Down 1.6%

Penske Automotive Group stock traded down $2.88 during mid-day trading on Tuesday, hitting $175.26. The company's stock had a trading volume of 215,871 shares, compared to its average volume of 263,616. The company has a debt-to-equity ratio of 0.16, a current ratio of 0.90 and a quick ratio of 0.21. The stock has a market cap of $11.57 billion, a price-to-earnings ratio of 12.20 and a beta of 0.87. The business has a 50 day moving average price of $172.30 and a 200-day moving average price of $163.53. Penske Automotive Group has a 12 month low of $134.05 and a 12 month high of $186.33.

Penske Automotive Group (NYSE:PAG - Get Free Report) last posted its quarterly earnings results on Wednesday, July 30th. The company reported $3.78 earnings per share for the quarter, topping the consensus estimate of $3.56 by $0.22. The business 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%. The firm's revenue for the quarter was down .4% on a year-over-year basis. During the same period in the previous year, the firm posted $3.61 earnings per share. As a group, analysts forecast that Penske Automotive Group will post 13.86 EPS for the current year.

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

Penske Automotive Group Increases Dividend

The business also recently declared a quarterly dividend, which will be paid on Wednesday, September 3rd. Investors of record on Friday, August 15th will be given a dividend of $1.32 per share. This is an increase from Penske Automotive Group's previous quarterly dividend of $1.26. This represents a $5.28 annualized dividend and a dividend yield of 3.0%. The ex-dividend date is Friday, August 15th. Penske Automotive Group's dividend payout ratio is presently 35.07%.

Insider Activity at Penske Automotive Group

In related news, CEO Roger S. Penske sold 77,357 shares of the business's 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 in the company, valued at $22,598,577.54. The trade was a 35.58% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, EVP Shane M. Spradlin sold 3,158 shares of the business's 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 transaction, the executive vice president owned 36,152 shares in the company, valued at $6,040,999.20. This represents a 8.03% decrease in their position. The disclosure for this sale can be found here. Insiders have sold 82,044 shares of company stock worth $13,257,948 over the last 90 days. 51.70% of the stock is owned by company insiders.

Institutional Investors Weigh In On Penske Automotive Group

A number of hedge funds and other institutional investors have recently bought and sold shares of PAG. LPL Financial LLC grew its holdings in Penske Automotive Group by 48.0% in the fourth quarter. LPL Financial LLC now owns 9,638 shares of the company's stock worth $1,469,000 after purchasing an additional 3,124 shares during the period. Dynamic Technology Lab Private Ltd bought a new position in shares of Penske Automotive Group in the fourth quarter worth approximately $634,000. Envestnet Asset Management Inc. lifted its stake in shares of Penske Automotive Group by 15.2% in the fourth quarter. Envestnet Asset Management Inc. now owns 4,898 shares of the company's stock worth $747,000 after buying an additional 645 shares in the last quarter. Russell Investments Group Ltd. lifted its stake in shares of Penske Automotive Group by 10.7% in the fourth quarter. Russell Investments Group Ltd. now owns 4,480 shares of the company's stock worth $683,000 after buying an additional 432 shares in the last quarter. Finally, Bank of Montreal Can lifted its stake in shares of Penske Automotive Group by 6.4% in the fourth quarter. Bank of Montreal Can now owns 2,651 shares of the company's stock worth $404,000 after buying an additional 160 shares in the last quarter. Hedge funds and other 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.