Penske Automotive Group (NYSE:PAG) Reaches New 12-Month High - Still a Buy?

Penske Automotive Group, Inc. (NYSE:PAG - Get Free Report) shares reached a new 52-week high on Wednesday . The company traded as high as $182.11 and last traded at $181.58, with a volume of 63709 shares trading hands. The stock had previously closed at $177.81.

Wall Street Analysts Forecast Growth

Several research firms recently commented on PAG. Stephens reaffirmed an "equal weight" rating and issued a $140.00 price objective on shares of Penske Automotive Group in a report on Wednesday, June 11th. Bank of America increased their price target on shares of Penske Automotive Group from $190.00 to $205.00 and gave the stock a "buy" rating in a report on Monday, June 16th. Wall Street Zen upgraded Penske Automotive Group from a "hold" rating to a "buy" rating in a research report on Wednesday, April 23rd. Citigroup increased their price target on shares of Penske Automotive Group from $185.00 to $195.00 and gave the company a "buy" rating in a research report on Monday, May 19th. Finally, JPMorgan Chase & Co. lowered their price objective on shares of Penske Automotive Group from $165.00 to $140.00 and set an "underweight" rating for the company in a report on Thursday, March 27th. One research analyst has rated the stock with a sell rating, one has assigned a hold rating and five have given a buy rating to the company's 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 Performance

The firm has a market cap of $12.08 billion, a P/E ratio of 12.87, a price-to-earnings-growth ratio of 1.65 and a beta of 0.91. The business's fifty day simple moving average is $164.69 and its 200-day simple moving average is $159.98. The company has a current ratio of 0.90, a quick ratio of 0.23 and a debt-to-equity ratio of 0.18.

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

Penske Automotive Group Increases Dividend

The company also recently disclosed a quarterly dividend, which was paid on Tuesday, June 3rd. Shareholders of record on Tuesday, May 27th were given a dividend of $1.26 per share. The ex-dividend date was Tuesday, May 27th. This represents a $5.04 annualized dividend and a yield of 2.76%. This is a positive change from Penske Automotive Group's previous quarterly dividend of $1.22. Penske Automotive Group's dividend payout ratio (DPR) is currently 35.49%.

Penske Automotive Group announced that its board has approved a stock repurchase 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 usually a sign that the company's board of directors believes its stock is undervalued.

Insider Buying and Selling at Penske Automotive Group

In other news, CEO Roger S. Penske sold 77,357 shares of Penske Automotive Group stock in a transaction that occurred on 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 completion of the transaction, the chief executive officer directly owned 140,042 shares in the company, valued at approximately $22,598,577.54. This trade represents a 35.58% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, Director Greg C. Smith sold 1,529 shares of Penske Automotive Group stock in a transaction on Tuesday, June 3rd. The shares were sold at an average price of $161.64, for a total value of $247,147.56. The disclosure for this sale can be found here. Over the last quarter, insiders sold 82,044 shares of company stock valued at $13,257,948. Corporate insiders own 52.40% of the company's stock.

Hedge Funds Weigh In On Penske Automotive Group

A number of institutional investors and hedge funds have recently made changes to their positions in the business. Whittier Trust Co. of Nevada Inc. purchased a new stake in shares of Penske Automotive Group during the 4th quarter worth approximately $40,000. Acadian Asset Management LLC purchased a new position in shares of Penske Automotive Group during the first quarter worth approximately $42,000. UMB Bank n.a. raised its position in Penske Automotive Group by 421.5% during the 1st quarter. UMB Bank n.a. now owns 339 shares of the company's stock valued at $49,000 after purchasing an additional 274 shares in the last quarter. GAMMA Investing LLC raised its holdings in shares of Penske Automotive Group by 51.9% in the first quarter. GAMMA Investing LLC now owns 398 shares of the company's stock valued at $57,000 after acquiring an additional 136 shares in the last quarter. Finally, Brooklyn Investment Group lifted its position in shares of Penske Automotive Group by 353.0% in the 1st quarter. Brooklyn Investment Group now owns 453 shares of the company's stock worth $65,000 after purchasing an additional 353 shares during the period. Hedge funds and other institutional investors own 77.08% of the company's stock.

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.

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