Stephens Issues Positive Forecast for Penske Automotive Group (NYSE:PAG) Stock Price

Key Points

• Stephens raised its price target on Penske Automotive Group to $160 (from $155) while keeping an "equal weight" rating, with the new target implying roughly a 6.16% downside from the prior close.
• Analyst sentiment is mixed but leans positive—six Buy and three Hold ratings result in an average consensus rating of "Moderate Buy" and an average price target of $183.29, even as several firms (JPMorgan, Barclays, Citigroup, Weiss) have recently trimmed targets or ratings.
• Penske beat the quarter-on-quarter estimates with $3.05 EPS vs. $2.91 expected and $7.86B revenue vs. $7.71B expected, though revenue was down 1.1% year-over-year; the stock trades with a market cap of $11.21B and a P/E of 12.66.

Penske Automotive Group (NYSE:PAG - Get Free Report) had its price target increased by investment analysts at Stephens from $155.00 to $160.00 in a research note issued on Monday,Benzinga reports. The brokerage presently has an "equal weight" rating on the stock. Stephens' price target points to a potential downside of 6.16% from the company's previous close.

Several other equities analysts have also recently weighed in on PAG. JPMorgan Chase & Co. lowered their target price on Penske Automotive Group from $170.00 to $165.00 and set a "neutral" rating on the stock in a research note on Friday, April 17th. Barclays dropped their price objective on Penske Automotive Group from $195.00 to $190.00 and set an "overweight" rating on the stock in a report on Tuesday, April 7th. Weiss Ratings downgraded shares of Penske Automotive Group from a "buy (b-)" rating to a "hold (c+)" rating in a research report on Monday, March 16th. Finally, Citigroup reduced their price objective on shares of Penske Automotive Group from $200.00 to $193.00 and set a "buy" rating for the company in a research note on Wednesday, April 8th. Six research analysts have rated the stock with a Buy rating and three have given a Hold rating to the company's stock. According to data from MarketBeat.com, Penske Automotive Group has an average rating of "Moderate Buy" and an average price target of $183.29.

Penske Automotive Group Stock Up 0.4%

PAG opened at $170.51 on Monday. The company has a debt-to-equity ratio of 0.39, a current ratio of 0.96 and a quick ratio of 0.22. Penske Automotive Group has a 12 month low of $140.12 and a 12 month high of $189.51. The stock's 50 day moving average price is $154.48 and its 200 day moving average price is $160.29. The stock has a market cap of $11.21 billion, a P/E ratio of 12.66, a P/E/G ratio of 2.26 and a beta of 0.90.

Penske Automotive Group (NYSE:PAG - Get Free Report) last issued its quarterly earnings results on Wednesday, April 29th. The company reported $3.05 EPS for the quarter, beating analysts' consensus estimates of $2.91 by $0.14. The company had revenue of $7.86 billion for the quarter, compared to analyst estimates of $7.71 billion. Penske Automotive Group had a return on equity of 15.13% and a net margin of 2.85%.The company's quarterly revenue was down 1.1% compared to the same quarter last year. During the same period last year, the company earned $3.66 earnings per share. As a group, research analysts predict that Penske Automotive Group will post 13.33 earnings per share for the current year.

Hedge Funds Weigh In On Penske Automotive Group

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Meixler Investment Management Ltd. bought a new stake in shares of Penske Automotive Group during the third quarter worth $1,154,000. Convergence Investment Partners LLC bought a new stake in Penske Automotive Group in the 3rd quarter valued at $1,157,000. JPMorgan Chase & Co. grew its holdings in Penske Automotive Group by 21.2% in the 3rd quarter. JPMorgan Chase & Co. now owns 111,775 shares of the company's stock valued at $19,439,000 after buying an additional 19,561 shares in the last quarter. Alps Advisors Inc. bought a new position in Penske Automotive Group during the third quarter worth about $5,585,000. Finally, Rhumbline Advisers increased its holdings in shares of Penske Automotive Group by 15.7% during the third quarter. Rhumbline Advisers now owns 58,783 shares of the company's stock worth $10,223,000 after purchasing an additional 7,978 shares during the period. Institutional investors own 77.08% of the company's stock.

About Penske Automotive Group

Penske Automotive Group, Inc NYSE: PAG, headquartered in Bloomfield Township, Michigan, is an international transportation services company primarily focused on automotive and commercial truck dealerships. The company retails new and pre-owned vehicles across a broad spectrum of brands, while offering parts, maintenance, collision repair and reconditioning services. In addition, Penske provides financing and insurance products through its integrated finance and insurance operations, supporting both retail customers and commercial clients.

Formed in 1990 as United Auto Group and publicly traded since 1999, Penske Automotive Group has grown through organic expansion and strategic acquisitions to establish a network of dealerships and service centers across the United States and Europe.

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