Penske Automotive Group (NYSE:PAG) Stock Price Down 6.2% Following Analyst Downgrade

Penske Automotive Group, Inc. (NYSE:PAG - Get Free Report) dropped 6.2% during mid-day trading on Thursday after JPMorgan Chase & Co. lowered their price target on the stock from $160.00 to $155.00. JPMorgan Chase & Co. currently has an underweight rating on the stock. Penske Automotive Group traded as low as $165.72 and last traded at $164.55. Approximately 53,358 shares traded hands during mid-day trading, a decline of 74% from the average daily volume of 204,585 shares. The stock had previously closed at $175.36.

A number of other equities analysts have also issued reports on the stock. Citigroup boosted their target price on shares of Penske Automotive Group from $185.00 to $195.00 and gave the stock a "buy" rating in a research report on Monday, May 19th. Wall Street Zen upgraded shares of Penske Automotive Group from a "hold" rating to a "buy" rating in a research note on Wednesday, April 23rd. Stephens reiterated an "equal weight" rating and set a $140.00 price target on shares of Penske Automotive Group in a research report on Wednesday, June 11th. Finally, Bank of America upped their price target on shares of Penske Automotive Group from $190.00 to $205.00 and gave the stock a "buy" rating in a research report on Monday, June 16th. One research analyst has rated the stock with a sell rating, one has issued a hold rating and five have given a buy rating to the company. According to data from MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and an average price target of $175.00.

Insider Activity

In related news, CEO Roger S. Penske sold 77,357 shares of the stock in a transaction that occurred on Tuesday, June 3rd. The stock was sold at an average price of $161.37, for a total transaction of $12,483,099.09. Following the completion of the sale, the chief executive officer directly owned 140,042 shares of the company's stock, valued at approximately $22,598,577.54. This represents a 35.58% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, Director Greg C. Smith sold 1,529 shares of the stock in a transaction that occurred on Tuesday, June 3rd. The stock was 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. Insiders sold a total of 82,044 shares of company stock valued at $13,257,948 in the last ninety days. 51.70% of the stock is owned by insiders.

Institutional Trading of Penske Automotive Group

A number of large investors have recently bought and sold shares of the business. Vanguard Group Inc. boosted its holdings in shares of Penske Automotive Group by 0.3% in the 1st quarter. Vanguard Group Inc. now owns 2,004,832 shares of the company's stock valued at $288,656,000 after buying an additional 5,641 shares during the last quarter. Burgundy Asset Management Ltd. boosted its holdings in shares of Penske Automotive Group by 7.0% in the 1st quarter. Burgundy Asset Management Ltd. now owns 863,529 shares of the company's stock valued at $124,331,000 after buying an additional 56,669 shares during the last quarter. AQR Capital Management LLC boosted its holdings in shares of Penske Automotive Group by 3.5% in the 4th quarter. AQR Capital Management LLC now owns 606,709 shares of the company's stock valued at $92,487,000 after buying an additional 20,506 shares during the last quarter. Goldman Sachs Group Inc. boosted its holdings 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 valued at $54,751,000 after buying an additional 84,045 shares during the last quarter. Finally, American Century Companies Inc. boosted its holdings in shares of Penske Automotive Group by 17.4% in the 4th quarter. American Century Companies Inc. now owns 259,513 shares of the company's stock valued at $39,560,000 after buying an additional 38,388 shares during the last quarter. 77.08% of the stock is owned by institutional investors.

Penske Automotive Group Trading Down 6.2%

The company has a market cap of $10.88 billion, a price-to-earnings ratio of 11.58, a P/E/G ratio of 1.72 and a beta of 0.91. The company has a debt-to-equity ratio of 0.18, a quick ratio of 0.23 and a current ratio of 0.90. The firm has a fifty day moving average price of $170.11 and a 200 day moving average price of $161.72.

Penske Automotive Group (NYSE:PAG - Get Free Report) last announced its quarterly earnings results on Wednesday, April 30th. The company reported $3.39 earnings per share (EPS) for the quarter, beating the consensus estimate of $3.27 by $0.12. Penske Automotive Group had a return on equity of 17.80% and a net margin of 3.10%. The business had revenue of $7.60 billion during the quarter, compared to the consensus estimate of $7.68 billion. During the same quarter last year, the firm posted $3.21 EPS. The company's quarterly revenue was up 2.1% on a year-over-year basis. As a group, equities analysts predict that Penske Automotive Group, Inc. will post 13.86 EPS for the current fiscal 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 issued a dividend of $1.26 per share. This is an increase from Penske Automotive Group's previous quarterly dividend of $1.22. The ex-dividend date of this dividend was Tuesday, May 27th. This represents a $5.04 annualized dividend and a yield of 3.06%. Penske Automotive Group's dividend payout ratio (DPR) is currently 35.49%.

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

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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