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

Key Points

• Penske Automotive Group shares reached a new 52-week high, trading as high as $219.59, despite closing the session down 0.7%. The stock’s average analyst rating is “Moderate Buy,” with a consensus price target of $196—below its recent trading level.
• The company exceeded quarterly expectations, reporting $3.05 in earnings per share versus the $2.91 consensus and $7.86 billion in revenue versus $7.71 billion expected. However, revenue declined 1.1% year over year, and analysts expect full-year EPS of $13.43.
• Penske raised its quarterly dividend to $1.44 per share, implying a 2.7% yield and a 42.39% payout ratio. Institutional investors own 77.08% of the stock, while recent insider transactions included share sales by the CFO and a director.

Penske Automotive Group, Inc. (NYSE:PAG - Get Free Report) reached a new 52-week high on Tuesday . The stock traded as high as $219.59 and last traded at $215.8480, with a volume of 499287 shares traded. The stock had previously closed at $217.35.

Analyst Upgrades and Downgrades

Several equities analysts have recently issued reports on the company. Stephens boosted their target price on Penske Automotive Group from $155.00 to $160.00 and gave the company an "equal weight" rating in a research note on Monday, May 4th. Weiss Ratings raised Penske Automotive Group from a "hold (c+)" rating to a "buy (b-)" rating in a research note on Friday, July 10th. UBS Group set a $190.00 price target on Penske Automotive Group in a research note on Friday, July 10th. Barclays lifted their price target on shares of Penske Automotive Group from $190.00 to $220.00 and gave the company an "overweight" rating in a report on Wednesday, July 15th. Finally, Benchmark downgraded shares of Penske Automotive Group from a "buy" rating to a "hold" rating in a research report on Wednesday, July 22nd. Five investment analysts have rated the stock with a Buy rating and five have issued a Hold rating to the company. According to MarketBeat, the company presently has an average rating of "Moderate Buy" and a consensus target price of $196.00.

Penske Automotive Group Stock Down 0.7%

The company's fifty day simple moving average is $181.87 and its 200 day simple moving average is $167.31. The company has a quick ratio of 0.22, a current ratio of 0.96 and a debt-to-equity ratio of 0.39. The firm has a market capitalization of $14.19 billion, a PE ratio of 16.11, a price-to-earnings-growth ratio of 2.81 and a beta of 0.87.

Penske Automotive Group (NYSE:PAG - Get Free Report) last posted its earnings results on Wednesday, April 29th. The company reported $3.05 earnings per share for the quarter, topping analysts' consensus estimates of $2.91 by $0.14. Penske Automotive Group had a return on equity of 15.13% and a net margin of 2.85%.The firm had revenue of $7.86 billion for the quarter, compared to the consensus estimate of $7.71 billion. During the same quarter in the prior year, the business earned $3.66 EPS. The business's revenue for the quarter was down 1.1% on a year-over-year basis. Analysts anticipate that Penske Automotive Group, Inc. will post 13.43 earnings per share for the current fiscal year.

Penske Automotive Group Increases Dividend

The company also recently declared a quarterly dividend, which will be paid on Tuesday, September 1st. Investors of record on Friday, August 14th will be given a dividend of $1.44 per share. This is a boost from Penske Automotive Group's previous quarterly dividend of $1.42. This represents a $5.76 annualized dividend and a dividend yield of 2.7%. The ex-dividend date is Friday, August 14th. Penske Automotive Group's dividend payout ratio is presently 42.39%.

Insider Buying and Selling at Penske Automotive Group

In related news, CFO Michelle Hulgrave sold 1,500 shares of the company's stock in a transaction on Tuesday, June 2nd. The stock was sold at an average price of $171.80, for a total value of $257,700.00. Following the sale, the chief financial officer directly owned 17,596 shares of the company's stock, valued at $3,022,992.80. This represents a 7.86% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, Director Greg C. Smith sold 1,488 shares of the stock in a transaction on Monday, May 18th. The stock was sold at an average price of $160.02, for a total value of $238,109.76. Additional details regarding this sale are available in the official SEC disclosure. 52.90% of the stock is owned by corporate insiders.

Institutional Trading of Penske Automotive Group

Hedge funds and other institutional investors have recently modified their holdings of the business. Goldman Sachs Group Inc. increased its stake in shares of 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 acquiring an additional 84,045 shares in the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC boosted its stake in Penske Automotive Group by 4.7% during the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 68,884 shares of the company's stock worth $9,918,000 after acquiring an additional 3,100 shares in the last quarter. Acadian Asset Management LLC purchased a new stake in Penske Automotive Group in the first quarter worth about $42,000. EverSource Wealth Advisors LLC grew its holdings in Penske Automotive Group by 506.9% in the second quarter. EverSource Wealth Advisors LLC now owns 880 shares of the company's stock worth $151,000 after purchasing an additional 735 shares during the period. Finally, Brown Advisory Inc. increased its stake in shares of Penske Automotive Group by 47.0% during the second quarter. Brown Advisory Inc. now owns 3,108 shares of the company's stock valued at $534,000 after purchasing an additional 994 shares in the last quarter. 77.08% of the stock is owned by hedge funds and other institutional investors.

About Penske Automotive Group

Penske Automotive Group, Inc NYSE: PAG, headquartered in Bloomfield Township, Michigan, is an international transportation services company primarily focused on automotive and commercial truck dealerships. The company retails new and pre-owned vehicles across a broad spectrum of brands, while offering parts, maintenance, collision repair and reconditioning services. In addition, Penske provides financing and insurance products through its integrated finance and insurance operations, supporting both retail customers and commercial clients.

Formed in 1990 as United Auto Group and publicly traded since 1999, Penske Automotive Group has grown through organic expansion and strategic acquisitions to establish a network of dealerships and service centers across the United States and Europe.

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