Penske Automotive Group (NYSE:PAG) Stock Passes Above 200 Day Moving Average - Time to Sell?

Key Points

• Penske Automotive Group shares moved above their 200-day moving average, trading as high as $177.96 and last near $175.02, a technical level that some investors may view as a bullish signal.
• Analysts remain generally positive: the stock has a Moderate Buy consensus rating with a $182.62 average price target, though recent target changes were mixed across firms.
• The company posted better-than-expected quarterly earnings of $3.05 per share and raised its dividend to $1.42 per share, while insiders recently sold shares and institutional ownership remains high at 77.08%.

Penske Automotive Group, Inc. (NYSE:PAG - Get Free Report) shares passed above its 200-day moving average during trading on Monday . The stock has a 200-day moving average of $162.47 and traded as high as $177.96. Penske Automotive Group shares last traded at $175.0210, with a volume of 227,027 shares traded.

Analyst Upgrades and Downgrades

PAG has been the topic of a number of analyst reports. Barclays lowered their price objective on Penske Automotive Group from $195.00 to $190.00 and set an "overweight" rating on the stock in a research report on Tuesday, April 7th. Stephens increased their target price on shares of Penske Automotive Group from $155.00 to $160.00 and gave the stock an "equal weight" rating in a report on Monday, May 4th. UBS Group assumed coverage on shares of Penske Automotive Group in a research note on Wednesday, May 27th. They set a "neutral" rating and a $167.00 target price on the stock. Morgan Stanley reaffirmed an "overweight" rating and set a $190.00 price target on shares of Penske Automotive Group in a report on Thursday, May 7th. Finally, Citigroup upped their price target on shares of Penske Automotive Group from $193.00 to $199.00 and gave the stock a "buy" rating in a research report on Wednesday, May 6th. Six research analysts have rated the stock with a Buy rating and four have issued a Hold rating to the company's stock. Based on data from MarketBeat, the company has a consensus rating of "Moderate Buy" and a consensus price target of $182.62.

Penske Automotive Group Stock Down 0.1%

The firm has a market capitalization of $11.51 billion, a PE ratio of 13.06, a PEG ratio of 2.27 and a beta of 0.87. The company has a fifty day moving average price of $167.67 and a 200-day moving average price of $162.47. The company has a debt-to-equity ratio of 0.39, a quick ratio of 0.22 and a current ratio of 0.96.

Penske Automotive Group (NYSE:PAG - Get Free Report) last released its quarterly earnings data on Wednesday, April 29th. The company reported $3.05 EPS for the quarter, beating the consensus estimate of $2.91 by $0.14. Penske Automotive Group had a net margin of 2.85% and a return on equity of 15.13%. The business had revenue of $7.86 billion during the quarter, compared to analyst estimates of $7.71 billion. During the same quarter last year, the business earned $3.66 earnings per share. Penske Automotive Group's quarterly revenue was down 1.1% compared to the same quarter last year. As a group, analysts expect that Penske Automotive Group, Inc. will post 13.46 earnings per share for the current year.

Penske Automotive Group Increases Dividend

The firm also recently announced a quarterly dividend, which was paid on Wednesday, June 3rd. Stockholders of record on Tuesday, May 26th were given a dividend of $1.42 per share. The ex-dividend date was Tuesday, May 26th. This represents a $5.68 annualized dividend and a dividend yield of 3.2%. This is a positive change from Penske Automotive Group's previous quarterly dividend of $1.40. Penske Automotive Group's dividend payout ratio is currently 42.39%.

Insider Transactions at Penske Automotive Group

In other Penske Automotive Group news, CFO Michelle Hulgrave sold 1,500 shares of the business's stock in a transaction that occurred on Tuesday, June 2nd. The stock was sold at an average price of $171.80, for a total transaction 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. The trade was a 7.86% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available through this link. Also, Director Greg C. Smith sold 1,488 shares of the company's stock in a transaction that occurred on Monday, May 18th. The shares were sold at an average price of $160.02, for a total value of $238,109.76. The disclosure for this sale is available in the SEC filing. 52.90% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Penske Automotive Group

Institutional investors and hedge funds have recently modified their holdings of the stock. Parallel Advisors LLC boosted its stake in shares of Penske Automotive Group by 15.1% during the 1st quarter. Parallel Advisors LLC now owns 441 shares of the company's stock worth $66,000 after purchasing an additional 58 shares during the period. Bank of America Corp DE raised its holdings in shares of Penske Automotive Group by 4.5% in the first quarter. Bank of America Corp DE now owns 463,784 shares of the company's stock worth $69,345,000 after buying an additional 19,850 shares during the period. California State Teachers Retirement System raised its holdings in shares of Penske Automotive Group by 30.0% in the first quarter. California State Teachers Retirement System now owns 24,384 shares of the company's stock worth $3,646,000 after buying an additional 5,627 shares during the period. Empowered Funds LLC lifted its stake in shares of Penske Automotive Group by 25.4% during the 1st quarter. Empowered Funds LLC now owns 2,115 shares of the company's stock worth $316,000 after acquiring an additional 429 shares during the last quarter. Finally, SummitTX Capital L.P. lifted its stake in shares of Penske Automotive Group by 177.5% during the 1st quarter. SummitTX Capital L.P. now owns 11,164 shares of the company's stock worth $1,669,000 after acquiring an additional 7,141 shares during the last quarter. Hedge funds and other institutional investors own 77.08% of the company's stock.

Penske Automotive Group Company Profile

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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