Penske Automotive Group (NYSE:PAG) Stock Price Up 11.4% - What's Next?

Key Points

• Shares jumped 11.4% on Wednesday to about $179.94, but trading volume was roughly 69% below average, suggesting the move occurred on light volume.
• Penske reported quarterly EPS of $3.05 versus a $3.11 consensus (a miss) while revenue of $7.86 billion slightly exceeded estimates; revenue was down 1.1% year‑over‑year and EPS declined from $3.66 a year earlier.
• Analysts' views are mixed — the stock carries an average rating of "Moderate Buy" with an average price target of $180.43 amid several recent target cuts and downgrades — and the company recently raised its quarterly dividend to $1.40 (a 3.2% yield).

Penske Automotive Group, Inc. (NYSE:PAG - Get Free Report) shares rose 11.4% on Wednesday . The company traded as high as $178.16 and last traded at $179.9350. Approximately 89,224 shares traded hands during mid-day trading, a decline of 69% from the average daily volume of 286,546 shares. The stock had previously closed at $161.55.

Analysts Set New Price Targets

PAG has been the subject of a number of recent analyst reports. Barclays dropped their price target on shares of Penske Automotive Group from $195.00 to $190.00 and set an "overweight" rating for the company in a research report on Tuesday, April 7th. Citigroup dropped their target price on shares of Penske Automotive Group from $200.00 to $193.00 and set a "buy" rating for the company in a research report on Wednesday, April 8th. Weiss Ratings lowered shares of Penske Automotive Group from a "buy (b-)" rating to a "hold (c+)" rating in a research report on Monday, March 16th. Finally, JPMorgan Chase & Co. dropped their target price on shares of Penske Automotive Group from $170.00 to $165.00 and set a "neutral" rating for the company in a research report on Friday, April 17th. Six research analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the company's stock. According to data from MarketBeat.com, the company currently has an average rating of "Moderate Buy" and an average price target of $180.43.

Penske Automotive Group Price Performance

The company has a quick ratio of 0.22, a current ratio of 0.99 and a debt-to-equity ratio of 0.32. The firm's 50 day simple moving average is $154.30 and its 200 day simple moving average is $160.28. The company has a market capitalization of $11.59 billion, a PE ratio of 13.06, a price-to-earnings-growth ratio of 2.10 and a beta of 0.87.

Penske Automotive Group (NYSE:PAG - Get Free Report) last released its earnings results on Wednesday, April 29th. The company reported $3.05 earnings per share (EPS) for the quarter, missing the consensus estimate of $3.11 by ($0.06). The firm had revenue of $7.86 billion during the quarter, compared to the consensus estimate of $7.80 billion. Penske Automotive Group had a return on equity of 15.77% and a net margin of 2.91%.Penske Automotive Group's revenue was down 1.1% compared to the same quarter last year. During the same quarter last year, the business posted $3.66 EPS. As a group, research analysts anticipate that Penske Automotive Group, Inc. will post 13.5 EPS for the current fiscal year.

Penske Automotive Group Increases Dividend

The company also recently announced a quarterly dividend, which was paid on Thursday, March 5th. Stockholders of record on Wednesday, February 25th were issued a $1.40 dividend. This is a boost from Penske Automotive Group's previous quarterly dividend of $1.38. The ex-dividend date was Wednesday, February 25th. This represents a $5.60 annualized dividend and a dividend yield of 3.2%. Penske Automotive Group's dividend payout ratio (DPR) is 41.48%.

Institutional Investors Weigh In On Penske Automotive Group

Several large investors have recently modified their holdings of the business. QRG Capital Management Inc. raised its holdings in shares of Penske Automotive Group by 18.6% in the 1st quarter. QRG Capital Management Inc. now owns 1,910 shares of the company's stock valued at $286,000 after purchasing an additional 300 shares in the last quarter. Keybank National Association OH raised its holdings in shares of Penske Automotive Group by 57.9% in the 1st quarter. Keybank National Association OH now owns 2,573 shares of the company's stock valued at $385,000 after purchasing an additional 944 shares in the last quarter. MQS Management LLC raised its holdings in shares of Penske Automotive Group by 36.3% in the 1st quarter. MQS Management LLC now owns 3,169 shares of the company's stock valued at $474,000 after purchasing an additional 844 shares in the last quarter. Apollon Wealth Management LLC bought a new stake in shares of Penske Automotive Group in the 1st quarter valued at about $364,000. Finally, Diamant Asset Management Inc. grew its position in shares of Penske Automotive Group by 14,852.0% in the 1st quarter. Diamant Asset Management Inc. now owns 884,411 shares of the company's stock worth $132,237,000 after buying an additional 878,496 shares during the last quarter. 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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