Penske Automotive Group (NYSE:PAG) Reaches New 1-Year High - Here's Why

Penske Automotive Group, Inc. (NYSE:PAG - Get Free Report) shares hit a new 52-week high during mid-day trading on Thursday . The stock traded as high as $184.20 and last traded at $184.58, with a volume of 8992 shares changing hands. The stock had previously closed at $181.57.

Analyst Upgrades and Downgrades

Several brokerages have issued reports on PAG. 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. Citigroup boosted their price target on 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. dropped their price target on Penske Automotive Group from $165.00 to $140.00 and set an "underweight" rating on the stock in a research note on Thursday, March 27th. Bank of America boosted their price target on 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, Wall Street Zen raised Penske Automotive Group from a "hold" rating to a "buy" rating in a research note on Wednesday, April 23rd. One analyst has rated the stock with a sell rating, one has assigned a hold rating and five have issued a buy rating to the stock. According to MarketBeat, the company has an average rating of "Moderate Buy" and an average target price of $172.00.

Penske Automotive Group Stock Down 0.5%

The firm has a market cap of $12.12 billion, a P/E ratio of 12.90, a price-to-earnings-growth ratio of 1.76 and a beta of 0.91. The stock's 50 day simple moving average is $168.74 and its 200 day simple moving average is $161.33. The company has a debt-to-equity ratio of 0.18, a quick ratio of 0.23 and a current ratio of 0.90.

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

Penske Automotive Group Increases Dividend

The firm also recently declared a quarterly dividend, which was paid on Tuesday, June 3rd. Shareholders of record on Tuesday, May 27th were paid a dividend of $1.26 per share. This represents a $5.04 dividend on an annualized basis and a yield of 2.75%. The ex-dividend date was Tuesday, May 27th. This is a positive change from Penske Automotive Group's previous quarterly dividend of $1.22. Penske Automotive Group's payout ratio is 35.49%.

Penske Automotive Group announced that its board has initiated a stock buyback program on Wednesday, May 14th that permits the company to repurchase $250.00 million in shares. This repurchase authorization permits the company to buy up to 2.3% of its stock through open market purchases. Stock repurchase programs are generally an indication that the company's board of directors believes its stock is undervalued.

Insider Transactions at Penske Automotive Group

In other news, EVP Shane M. Spradlin sold 3,158 shares of the company's stock in a transaction on Monday, June 9th. The shares were sold at an average price of $167.10, for a total value of $527,701.80. Following the completion of the sale, 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 transaction was disclosed in a legal filing with the SEC, which is available through this hyperlink. Also, Director Greg C. Smith sold 1,529 shares of the company's 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 disclosure for this sale can be found here. Insiders sold a total of 82,044 shares of company stock worth $13,257,948 in the last quarter. 52.40% of the stock is currently owned by corporate insiders.

Institutional Trading of Penske Automotive Group

Several institutional investors have recently made changes to their positions in the company. Farther Finance Advisors LLC grew its stake in shares of Penske Automotive Group by 862.7% in the 2nd quarter. Farther Finance Advisors LLC now owns 1,059 shares of the company's stock worth $182,000 after acquiring an additional 949 shares in the last quarter. UMB Bank n.a. boosted its holdings in shares of Penske Automotive Group by 18.6% in the 2nd quarter. UMB Bank n.a. now owns 402 shares of the company's stock worth $69,000 after buying an additional 63 shares during the last quarter. Wealth Enhancement Advisory Services LLC boosted its holdings in shares of Penske Automotive Group by 49.7% in the 2nd quarter. Wealth Enhancement Advisory Services LLC now owns 7,878 shares of the company's stock worth $1,438,000 after buying an additional 2,615 shares during the last quarter. Pallas Capital Advisors LLC boosted its holdings in shares of Penske Automotive Group by 29.5% in the 2nd quarter. Pallas Capital Advisors LLC now owns 3,778 shares of the company's stock worth $649,000 after buying an additional 860 shares during the last quarter. Finally, Douglas Lane & Associates LLC purchased a new position in shares of Penske Automotive Group in the 2nd quarter worth about $223,000. 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.