Seaport Res Ptn Issues Negative Outlook for PAG 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) - Stock analysts at Seaport Res Ptn lowered their Q4 2025 earnings estimates for Penske Automotive Group in a report issued on Monday, August 11th. Seaport Res Ptn analyst G. Chin now anticipates that the company will post earnings per share of $3.39 for the quarter, down from their prior forecast of $3.42. The consensus estimate for Penske Automotive Group's current full-year earnings is $13.86 per share.

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

Other equities research analysts have also issued research reports about the stock. Morgan Stanley reissued an "overweight" rating and issued a $190.00 price target (up previously from $180.00) on shares of Penske Automotive Group in a report on Thursday. Bank of America lifted their price target on shares of Penske Automotive Group from $190.00 to $205.00 and gave the company a "buy" rating in a research report on Monday, June 16th. Citigroup lifted their price target on shares of Penske Automotive Group from $185.00 to $195.00 and gave the company a "buy" rating in a research report on Monday, May 19th. Wall Street Zen raised shares of Penske Automotive Group from a "hold" rating to a "buy" rating in a report on Wednesday, April 23rd. Finally, Stephens reaffirmed an "equal weight" rating and issued a $140.00 target price on shares of Penske Automotive Group in a report on Wednesday, June 11th. Two investment analysts have rated the stock with a hold rating and five have assigned a buy rating to the company's stock. Based on data from MarketBeat.com, Penske Automotive Group currently has a consensus rating of "Moderate Buy" and a consensus target price of $181.00.

Penske Automotive Group Trading Down 1.5%

Shares of Penske Automotive Group stock traded down $2.72 during trading on Thursday, reaching $180.34. The company's stock had a trading volume of 200,276 shares, compared to its average volume of 254,435. The company has a quick ratio of 0.21, a current ratio of 0.90 and a debt-to-equity ratio of 0.16. Penske Automotive Group has a 52-week low of $134.05 and a 52-week high of $186.55. The firm's 50-day moving average is $174.36 and its two-hundred day moving average is $164.24. The company has a market cap of $11.91 billion, a price-to-earnings ratio of 12.55 and a beta of 0.87.

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

Penske Automotive Group Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Wednesday, September 3rd. Stockholders of record on Friday, August 15th will be issued a dividend of $1.32 per share. The ex-dividend date of this dividend 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 is presently 35.07%.

Insider Activity

In other news, Director Greg C. Smith sold 1,529 shares of the business's stock in a transaction that occurred on Tuesday, June 3rd. The shares were sold at an average price of $161.64, for a total transaction of $247,147.56. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, EVP Shane M. Spradlin sold 3,158 shares of the business's stock in a transaction that occurred on Monday, June 9th. The shares were sold at an average price of $167.10, for a total transaction of $527,701.80. Following the sale, the executive vice president owned 36,152 shares of the company's stock, valued at $6,040,999.20. This trade represents a 8.03% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold 82,044 shares of company stock valued at $13,257,948 over the last three months. Insiders own 51.70% of the company's stock.

Institutional Trading of Penske Automotive Group

Large investors have recently added to or reduced their stakes in the business. Sound Income Strategies LLC bought a new position in shares of Penske Automotive Group during the second quarter worth $34,000. Acadian Asset Management LLC bought a new position in Penske Automotive Group during the first quarter valued at $42,000. UMB Bank n.a. lifted its position in Penske Automotive Group by 421.5% during the first quarter. UMB Bank n.a. now owns 339 shares of the company's stock valued at $49,000 after purchasing an additional 274 shares during the last quarter. GAMMA Investing LLC lifted its position in Penske Automotive Group by 51.9% during the first quarter. GAMMA Investing LLC now owns 398 shares of the company's stock valued at $57,000 after purchasing an additional 136 shares during the last quarter. Finally, Brooklyn Investment Group raised its stake in shares of Penske Automotive Group by 353.0% in the first quarter. Brooklyn Investment Group now owns 453 shares of the company's stock valued at $65,000 after acquiring an additional 353 shares during the period. 77.08% of the stock is currently owned by institutional investors.

About Penske Automotive Group

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.