Seaport Res Ptn Has Bullish Estimate for PAG Q3 Earnings

Key Points

• Seaport Res Ptn has raised its Q3 2025 EPS estimate for Penske Automotive Group to $3.59, an increase from the previous estimate of $3.55.
• Bank of America and Citigroup have both increased their price targets for PAG, setting them at $205.00 and $195.00, respectively, while maintaining a "buy" rating on the stock.
• Penske Automotive Group's board has initiated a stock repurchase plan allowing the company to buy back $250 million in shares, indicating a belief in the stock's undervaluation.

Penske Automotive Group, Inc. (NYSE:PAG - Free Report) - Seaport Res Ptn increased their Q3 2025 EPS estimates for shares of Penske Automotive Group in a report released on Monday, August 11th. Seaport Res Ptn analyst G. Chin now anticipates that the company will post earnings per share of $3.59 for the quarter, up from their previous forecast of $3.55. The consensus estimate for Penske Automotive Group's current full-year earnings is $13.86 per share. Seaport Res Ptn also issued estimates for Penske Automotive Group's FY2025 earnings at $14.14 EPS and FY2026 earnings at $13.82 EPS.

Penske Automotive Group (NYSE:PAG - Get Free Report) last announced 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 company had revenue of $7.66 billion during the quarter, compared to the consensus estimate of $7.98 billion. Penske Automotive Group had a net margin of 3.13% and a return on equity of 17.43%. The company's revenue was down .4% on a year-over-year basis. During the same period in the previous year, the firm posted $3.61 earnings per share.

A number of other research analysts have also recently issued reports on PAG. Bank of America boosted their price objective on shares of Penske Automotive Group from $190.00 to $205.00 and gave the company a "buy" rating in a report on Monday, June 16th. Citigroup upped their price target on shares of Penske Automotive Group from $185.00 to $195.00 and gave the company a "buy" rating in a report on Monday, May 19th. Stephens reiterated an "equal weight" rating and issued a $140.00 price target on shares of Penske Automotive Group in a report on Wednesday, June 11th. Morgan Stanley reiterated 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. Finally, Wall Street Zen upgraded shares of Penske Automotive Group from a "hold" rating to a "buy" rating in a report on Wednesday, April 23rd. Two equities research analysts have rated the stock with a hold rating and five have given a buy rating to the company. Based on data from MarketBeat, the stock has an average rating of "Moderate Buy" and an average target price of $181.00.

Penske Automotive Group Trading Down 1.6%

Shares of PAG traded down $2.90 on Wednesday, reaching $182.92. 163,270 shares of the company's stock were exchanged, compared to its average volume of 265,747. The company has a current ratio of 0.90, a quick ratio of 0.21 and a debt-to-equity ratio of 0.16. The stock has a market capitalization of $12.08 billion, a P/E ratio of 12.73 and a beta of 0.87. The business has a 50 day moving average price of $174.05 and a two-hundred day moving average price of $164.14. Penske Automotive Group has a 12 month low of $134.05 and a 12 month high of $186.55.

Penske Automotive Group Increases Dividend

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

Penske Automotive Group declared that its Board of Directors has authorized a share buyback program on Wednesday, May 14th that authorizes the company to repurchase $250.00 million in outstanding shares. This repurchase authorization authorizes the company to purchase up to 2.3% of its shares through open market purchases. Shares repurchase programs are often a sign that the company's board believes its shares are undervalued.

Insider Activity

In other news, CEO Roger S. Penske sold 77,357 shares of the firm's stock in a transaction that occurred on Tuesday, June 3rd. The shares were sold at an average price of $161.37, for a total value of $12,483,099.09. Following the sale, the chief executive officer directly owned 140,042 shares in the company, valued at approximately $22,598,577.54. This trade represents a 35.58% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, EVP Shane M. Spradlin sold 3,158 shares of Penske Automotive Group stock in a transaction that occurred on Monday, June 9th. The stock was 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 in the company, valued at approximately $6,040,999.20. This represents a 8.03% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last three months, insiders have sold 82,044 shares of company stock worth $13,257,948. Corporate insiders own 51.70% of the company's stock.

Institutional Trading of Penske Automotive Group

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

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.