Seaport Res Ptn Has Optimistic Outlook of 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) - Stock analysts at Seaport Res Ptn lifted their Q3 2025 earnings estimates for Penske Automotive Group in a research report issued on Monday, August 11th. Seaport Res Ptn analyst G. Chin now forecasts that the company will post earnings of $3.59 per share for the quarter, up from their prior estimate 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.

Several other research firms also recently issued reports on PAG. Stephens reaffirmed an "equal weight" rating and set a $140.00 price objective on shares of Penske Automotive Group in a report on Wednesday, June 11th. Citigroup increased their price objective on shares of Penske Automotive Group from $185.00 to $195.00 and gave the company a "buy" rating in a research note 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. Bank of America increased their price objective on shares of Penske Automotive Group from $190.00 to $205.00 and gave the stock a "buy" rating in a report on Monday, June 16th. Finally, JPMorgan Chase & Co. raised shares of Penske Automotive Group from an "underweight" rating to a "neutral" rating and increased their price objective for the stock from $155.00 to $175.00 in a report on Tuesday, August 5th. Two investment analysts have rated the stock with a hold rating and five have issued a buy rating to the company's stock. According to MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and an average target price of $181.00.

Penske Automotive Group Stock Down 1.5%

PAG stock traded down $2.72 during trading hours on Wednesday, hitting $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. The stock has a 50 day moving average price of $174.36 and a two-hundred day moving average price of $164.24. The company has a market capitalization of $11.91 billion, a PE ratio of 12.55 and a beta of 0.87. Penske Automotive Group has a 12 month low of $134.05 and a 12 month high of $186.55.

Penske Automotive Group (NYSE:PAG - Get Free Report) last announced its quarterly earnings data on Wednesday, July 30th. The company reported $3.78 EPS for the quarter, beating analysts' consensus estimates of $3.56 by $0.22. The firm had revenue of $7.66 billion for 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 firm'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.

Hedge Funds Weigh In On Penske Automotive Group

Hedge funds and other institutional investors have recently made changes to their positions in the company. Cambridge Investment Research Advisors Inc. boosted its position in Penske Automotive Group by 9.6% during the first quarter. Cambridge Investment Research Advisors Inc. now owns 3,367 shares of the company's stock worth $485,000 after purchasing an additional 295 shares during the period. Two Sigma Investments LP raised its stake in Penske Automotive Group by 21.0% during the fourth quarter. Two Sigma Investments LP now owns 10,253 shares of the company's stock worth $1,563,000 after acquiring an additional 1,777 shares in the last quarter. Teacher Retirement System of Texas raised its stake in Penske Automotive Group by 15.8% during the first quarter. Teacher Retirement System of Texas now owns 12,006 shares of the company's stock worth $1,729,000 after acquiring an additional 1,639 shares in the last quarter. KBC Group NV increased its stake in shares of Penske Automotive Group by 33.4% in the first quarter. KBC Group NV now owns 999 shares of the company's stock valued at $144,000 after buying an additional 250 shares during the period. Finally, SG Americas Securities LLC bought a new stake in Penske Automotive Group in the first quarter valued at approximately $648,000. 77.08% of the stock is owned by institutional investors.

Insiders Place Their Bets

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 transaction of $12,483,099.09. Following the completion of the transaction, the chief executive officer directly owned 140,042 shares of the company's stock, valued at $22,598,577.54. This trade represents a 35.58% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, Director Greg C. Smith sold 1,529 shares of the firm's stock in a transaction on Tuesday, June 3rd. The shares were sold at an average price of $161.64, for a total transaction of $247,147.56. 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. Company insiders own 51.70% of the company's stock.

Penske Automotive Group declared that its Board of Directors has initiated a share repurchase program on Wednesday, May 14th that permits the company to repurchase $250.00 million in outstanding shares. This repurchase authorization permits the company to purchase up to 2.3% of its stock through open market purchases. Stock repurchase programs are generally an indication that the company's leadership believes its shares are undervalued.

Penske Automotive Group Increases Dividend

The business also recently announced a quarterly dividend, which will be paid on Wednesday, September 3rd. Shareholders of record on Friday, August 15th will be issued a dividend of $1.32 per share. This is an increase from Penske Automotive Group's previous quarterly dividend of $1.26. The ex-dividend date is Friday, August 15th. This represents a $5.28 annualized dividend and a yield of 2.9%. Penske Automotive Group's dividend payout ratio is 35.07%.

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.