Seaport Res Ptn Has Bullish Forecast for PAG Q2 Earnings

Key Points

• Seaport Res Ptn has increased its Q2 2025 earnings per share estimate for Penske Automotive Group from $3.54 to $3.57, with a consensus full-year estimate of $13.86 per share.
• Penske Automotive Group recently declared a quarterly dividend of $1.32 per share, marking an increase from the previous $1.26 dividend and resulting in an annualized yield of 3.16%.
• The company's share buyback plan allows for the repurchase of up to $250 million in stock, signifying management's belief that the stock is currently undervalued.

Penske Automotive Group, Inc. (NYSE:PAG - Free Report) - Equities researchers at Seaport Res Ptn upped their Q2 2025 earnings per share estimates for shares of Penske Automotive Group in a research report issued on Wednesday, July 30th. Seaport Res Ptn analyst G. Chin now forecasts that the company will earn $3.57 per share for the quarter, up from their prior estimate of $3.54. 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 Q3 2025 earnings at $3.55 EPS and FY2025 earnings at $13.93 EPS.

Several other equities research analysts have also weighed in on the company. JPMorgan Chase & Co. cut their target price on Penske Automotive Group from $160.00 to $155.00 and set an "underweight" rating on the stock in a research report on Thursday, July 17th. Wall Street Zen upgraded Penske Automotive Group from a "hold" rating to a "buy" rating in a research note on Wednesday, April 23rd. Stephens restated an "equal weight" rating and set a $140.00 price target on shares of Penske Automotive Group in a research note on Wednesday, June 11th. Bank of America raised their price target 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. Finally, Citigroup raised their price target on Penske Automotive Group from $185.00 to $195.00 and gave the stock a "buy" rating in a research note on Monday, May 19th. One research analyst has rated the stock with a sell rating, one has given a hold rating and five have issued a buy rating to the stock. According to data from MarketBeat.com, the company currently has an average rating of "Moderate Buy" and an average target price of $175.00.

Penske Automotive Group Stock Up 0.8%

PAG stock traded up $1.41 during mid-day trading on Thursday, reaching $169.67. The company had a trading volume of 88,530 shares, compared to its average volume of 242,257. The company has a debt-to-equity ratio of 0.16, a quick ratio of 0.21 and a current ratio of 0.90. The company has a market capitalization of $11.23 billion, a price-to-earnings ratio of 11.78 and a beta of 0.87. The firm has a fifty day simple moving average of $171.34 and a 200 day simple moving average of $163.16. Penske Automotive Group has a fifty-two week low of $134.05 and a fifty-two week high of $186.33.

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

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 of this dividend is Friday, August 15th. This represents a $5.28 annualized dividend and a dividend yield of 3.1%. This is an increase from Penske Automotive Group's previous quarterly dividend of $1.26. Penske Automotive Group's payout ratio is 35.07%.

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

Insider Activity

In other news, Director Greg C. Smith sold 1,529 shares of the firm's stock in a transaction that occurred on Tuesday, June 3rd. The stock was sold at an average price of $161.64, for a total value of $247,147.56. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this link. Also, 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 completion of the sale, the chief executive officer directly owned 140,042 shares of the company's stock, valued at $22,598,577.54. This represents a 35.58% 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 in the last three months. 52.40% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Penske Automotive Group

Several hedge funds and other institutional investors have recently bought and sold shares of PAG. Sound Income Strategies LLC acquired a new position in shares of Penske Automotive Group in the second quarter worth $34,000. Acadian Asset Management LLC purchased a new stake in shares of Penske Automotive Group in the first quarter worth about $42,000. UMB Bank n.a. boosted its position in shares of Penske Automotive Group by 421.5% in 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 lifted its stake in shares of Penske Automotive Group by 51.9% in the first 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 raised its stake in Penske Automotive Group by 353.0% during the first quarter. Brooklyn Investment Group now owns 453 shares of the company's stock valued at $65,000 after buying an additional 353 shares in the last quarter. 77.08% of the stock is owned by institutional investors and hedge funds.

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.