Penske Automotive Group (NYSE:PAG) Shares Cross Above Two Hundred Day Moving Average - Here's Why

Key Points

• Penske Automotive Group shares rose above their 200-day moving average, reaching $203 and last trading near $200.77, compared with the 200-day average of $185.12.
• Analysts hold a “Moderate Buy” consensus with an average price target of $211.14; ratings are evenly split between five Buys and five Holds.
• The company exceeded quarterly expectations with $3.62 in earnings per share and $8.51 billion in revenue, while increasing its quarterly dividend to $1.44 per share, or $5.76 annualized.

Penske Automotive Group, Inc. (NYSE:PAG - Get Free Report) shares passed above its 200-day moving average during trading on Wednesday. The stock has a 200-day moving average of $185.12 and traded as high as $203.00. Penske Automotive Group shares last traded at $200.7740, with a volume of 725,378 shares trading hands.

Wall Street Analyst Weigh In

Several research analysts have weighed in on the stock. UBS Group set a $190.00 target price on shares of Penske Automotive Group in a research report on Friday, July 10th. Benchmark lowered Penske Automotive Group from a "buy" rating to a "hold" rating in a research note on Wednesday, July 22nd. JPMorgan Chase & Co. upped their price target on Penske Automotive Group from $170.00 to $215.00 and gave the stock a "neutral" rating in a report on Tuesday, August 4th. Stephens raised their price objective on Penske Automotive Group from $166.00 to $210.00 and gave the company an "equal weight" rating in a research note on Monday, August 3rd. Finally, Bank of America lifted their price objective on Penske Automotive Group from $200.00 to $238.00 and gave the stock a "buy" rating in a report on Thursday, July 9th. Five investment analysts have rated the stock with a Buy rating and five have assigned a Hold rating to the stock. According to data from MarketBeat, Penske Automotive Group has a consensus rating of "Moderate Buy" and an average price target of $211.14.

Penske Automotive Group Trading Down 0.5%

The business has a fifty day simple moving average of $215.89 and a 200 day simple moving average of $185.12. The stock has a market cap of $13.18 billion, a price-to-earnings ratio of 14.78 and a beta of 0.84. The company has a debt-to-equity ratio of 0.36, a quick ratio of 0.21 and a current ratio of 0.98.

Penske Automotive Group (NYSE:PAG - Get Free Report) last released its quarterly earnings results on Wednesday, July 29th. The company reported $3.62 earnings per share for the quarter, topping analysts' consensus estimates of $3.42 by $0.20. Penske Automotive Group had a return on equity of 14.78% and a net margin of 2.81%.The company had revenue of $8.51 billion during the quarter, compared to analysts' expectations of $7.98 billion. During the same period in the previous year, the firm posted $3.78 earnings per share. The business's revenue for the quarter was up 11.1% compared to the same quarter last year. As a group, equities analysts anticipate that Penske Automotive Group, Inc. will post 13.66 EPS for the current year.

Penske Automotive Group Increases Dividend

The business also recently disclosed a quarterly dividend, which was paid on Tuesday, September 1st. Investors of record on Friday, August 14th were given a dividend of $1.44 per share. The ex-dividend date was Friday, August 14th. This represents a $5.76 dividend on an annualized basis and a yield of 2.9%. This is a boost from Penske Automotive Group's previous quarterly dividend of $1.42. Penske Automotive Group's dividend payout ratio (DPR) is 42.42%.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the company. BlackRock Inc. acquired a new stake in shares of Penske Automotive Group during the 2nd quarter worth about $417,516,000. Dimensional Fund Advisors LP raised its position in shares of Penske Automotive Group by 11.9% in the first quarter. Dimensional Fund Advisors LP now owns 1,447,910 shares of the company's stock valued at $216,489,000 after buying an additional 154,443 shares during the last quarter. Diamant Asset Management Inc. raised its position in shares of Penske Automotive Group by 14,852.0% in the first quarter. Diamant Asset Management Inc. now owns 884,411 shares of the company's stock valued at $132,237,000 after buying an additional 878,496 shares during the last quarter. Bank of America Corp DE purchased a new position in shares of Penske Automotive Group during the second quarter valued at approximately $79,065,000. Finally, Bank of New York Mellon Corp purchased a new position in shares of Penske Automotive Group during the second quarter valued at approximately $67,822,000. 77.08% of the stock is currently owned by hedge funds and other institutional investors.

Penske Automotive Group Company Profile

Penske Automotive Group, Inc is a diversified international transportation services company that operates automotive and commercial vehicle dealerships. The company sells new and used cars, trucks and other vehicles, representing a broad range of manufacturers and brands.

Its retail automotive operations also provide vehicle financing and insurance products, maintenance and repair services, replacement parts, collision repair, and other related services. Through its commercial vehicle operations, Penske Automotive Group serves businesses and fleet customers with heavy- and medium-duty trucks, parts and service support, and related transportation solutions.

The company serves customers primarily in the United States, the United Kingdom, Germany, Italy and Japan.

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