Seaport Res Ptn Has Pessimistic Outlook of PAG Q4 Earnings

Key Points

• Seaport Res Ptn has reduced its Q4 earnings estimate for Penske Automotive Group (PAG) from $3.42 to $3.39 per share.
• Recent quarterly results showed Penske Automotive Group reported earnings of $3.78 EPS, exceeding the consensus estimate, but revenue declined by 0.4% year-over-year.
• The company has announced an increase in its quarterly dividend to $1.32 per share, which reflects a positive change and a 2.9% dividend yield.

Penske Automotive Group, Inc. (NYSE:PAG - Free Report) - Analysts at Seaport Res Ptn decreased their Q4 2025 earnings per share estimates for Penske Automotive Group in a research report issued on Monday, August 11th. Seaport Res Ptn analyst G. Chin now expects that the company will post earnings of $3.39 per share for the quarter, down from their previous forecast of $3.42. The consensus estimate for Penske Automotive Group's current full-year earnings is $13.86 per share.

Other analysts also recently issued reports about the stock. Morgan Stanley lifted their price target on shares of Penske Automotive Group from $180.00 to $190.00 and gave the company an "overweight" rating in a report on Thursday, August 14th. Bank of America lifted their price objective on Penske Automotive Group from $190.00 to $205.00 and gave the stock a "buy" rating in a research note on Monday, June 16th. Wall Street Zen upgraded shares of Penske Automotive Group from a "hold" rating to a "buy" rating in a research report on Wednesday, April 23rd. JPMorgan Chase & Co. raised shares of Penske Automotive Group from an "underweight" rating to a "neutral" rating and lifted their price objective for the stock from $155.00 to $175.00 in a research note on Tuesday, August 5th. Finally, Stephens reaffirmed an "equal weight" rating and issued a $140.00 price objective on shares of Penske Automotive Group in a research note on Wednesday, June 11th. Four equities research analysts have rated the stock with a Buy rating and two have issued a Hold rating to the stock. According to data from MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and a consensus price target of $181.00.

Penske Automotive Group Price Performance

Shares of PAG stock traded up $1.6750 during mid-day trading on Thursday, hitting $182.1950. The company had a trading volume of 59,563 shares, compared to its average volume of 240,370. The company has a debt-to-equity ratio of 0.16, a current ratio of 0.90 and a quick ratio of 0.21. The stock's 50 day moving average price is $174.63 and its 200-day moving average price is $164.31. Penske Automotive Group has a 52-week low of $134.05 and a 52-week high of $186.55. The company has a market capitalization of $12.03 billion, a P/E ratio of 12.69 and a beta of 0.87.

Penske Automotive Group (NYSE:PAG - Get Free Report) last issued its earnings results on Wednesday, July 30th. The company reported $3.78 earnings per share (EPS) for the quarter, beating the consensus estimate of $3.56 by $0.22. Penske Automotive Group had a return on equity of 17.43% and a net margin of 3.13%.The company had revenue of $7.66 billion for the quarter, compared to the consensus estimate of $7.98 billion. During the same quarter last year, the company earned $3.61 EPS. The firm's quarterly revenue was down .4% on a year-over-year basis.

Institutional Inflows and Outflows

Several institutional investors have recently bought and sold shares of PAG. Sound Income Strategies LLC bought a new position in shares of Penske Automotive Group during the 2nd quarter worth $34,000. Acadian Asset Management LLC bought a new position in Penske Automotive Group in the first quarter worth approximately $42,000. UMB Bank n.a. lifted its holdings in Penske Automotive Group by 421.5% during the first quarter. UMB Bank n.a. now owns 339 shares of the company's stock worth $49,000 after buying an additional 274 shares during the period. GAMMA Investing LLC boosted its position in Penske Automotive Group by 51.9% during the 1st quarter. GAMMA Investing LLC now owns 398 shares of the company's stock valued at $57,000 after acquiring an additional 136 shares in the last quarter. Finally, Brooklyn Investment Group boosted its position in Penske Automotive Group by 353.0% during the 1st quarter. Brooklyn Investment Group now owns 453 shares of the company's stock valued at $65,000 after acquiring an additional 353 shares in the last quarter. 77.08% of the stock is currently owned by hedge funds and other institutional investors.

Insider Transactions at Penske Automotive Group

In other Penske Automotive Group news, 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 value of $247,147.56. The sale was disclosed in a filing with the SEC, which is available at the SEC website. Also, CEO Roger S. Penske sold 77,357 shares of Penske Automotive Group stock in a transaction on Tuesday, June 3rd. The stock was sold at an average price of $161.37, for a total value of $12,483,099.09. Following the sale, the chief executive officer owned 140,042 shares of the company's stock, valued at approximately $22,598,577.54. This trade represents a 35.58% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last three months, insiders have sold 82,044 shares of company stock worth $13,257,948. 52.40% of the stock is currently owned by company insiders.

Penske Automotive Group Increases Dividend

The firm also recently declared a quarterly dividend, which will be paid on Wednesday, September 3rd. Stockholders of record on Friday, August 15th will be issued a $1.32 dividend. The ex-dividend date is Friday, August 15th. This is a positive change from Penske Automotive Group's previous quarterly dividend of $1.26. This represents a $5.28 annualized dividend and a dividend yield of 2.9%. Penske Automotive Group's dividend payout ratio (DPR) is currently 36.74%.

Penske Automotive Group announced that its Board of Directors has authorized a share repurchase plan on Wednesday, May 14th that authorizes the company to buyback $250.00 million in outstanding shares. This buyback authorization authorizes the company to buy up to 2.3% of its shares through open market purchases. Shares buyback plans are usually an indication that the company's board of directors believes its shares are 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.