Seaport Res Ptn Issues Positive Outlook for PAG Earnings

Key Points

• Seaport Res Ptn has increased its Q4 2025 earnings estimate for Penske Automotive Group from $3.41 to $3.42 per share, while the consensus estimate for the current full year is $13.86 per share.
• Penske Automotive Group reported $3.78 earnings per share for its last quarter, exceeding analysts' expectations of $3.56, but had a 0.4% decline in quarterly revenue year-over-year.
• The company announced an increase in its quarterly dividend to $1.32, up from $1.26, which reflects a yield of 3.2% and a payout ratio of 35.49%.

Penske Automotive Group, Inc. (NYSE:PAG - Free Report) - Equities research analysts at Seaport Res Ptn increased their Q4 2025 earnings estimates for Penske Automotive Group in a note issued to investors on Wednesday, July 30th. Seaport Res Ptn analyst G. Chin now anticipates that the company will post earnings per share of $3.42 for the quarter, up from their previous forecast of $3.41. 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 FY2026 earnings at $13.78 EPS.

Penske Automotive Group (NYSE:PAG - Get Free Report) last posted its earnings results on Wednesday, July 30th. The company reported $3.78 EPS for the quarter, beating analysts' consensus estimates of $3.56 by $0.22. The business 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 company's revenue for the quarter was down .4% on a year-over-year basis. During the same quarter last year, the firm posted $3.61 EPS.

A number of other brokerages also recently issued reports on PAG. JPMorgan Chase & Co. raised shares of Penske Automotive Group from an "underweight" rating to a "neutral" rating and lifted their price objective for the stock from $155.00 to $175.00 in a research report on Tuesday. Citigroup lifted their price objective on shares of Penske Automotive Group from $185.00 to $195.00 and gave the stock a "buy" rating in a research report on Monday, May 19th. Stephens reaffirmed an "equal weight" rating and issued a $140.00 price objective on shares of Penske Automotive Group in a research report on Wednesday, June 11th. Bank of America lifted their price objective on shares of Penske Automotive Group from $190.00 to $205.00 and gave the stock a "buy" rating in a research report on Monday, June 16th. Finally, Wall Street Zen raised shares of Penske Automotive Group from a "hold" rating to a "buy" rating in a research report on Wednesday, April 23rd. 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, the company currently has a consensus rating of "Moderate Buy" and an average target price of $179.00.

Penske Automotive Group Stock Up 5.4%

NYSE PAG traded up $9.11 during trading on Friday, reaching $177.51. 211,469 shares of the company's stock traded hands, compared to its average volume of 243,595. The company has a debt-to-equity ratio of 0.16, a current ratio of 0.90 and a quick ratio of 0.21. The firm has a market cap of $11.75 billion, a price-to-earnings ratio of 12.35 and a beta of 0.87. The company's 50 day simple moving average is $171.47 and its two-hundred day simple moving average is $163.22. Penske Automotive Group has a 12-month low of $134.05 and a 12-month high of $186.33.

Institutional Trading of Penske Automotive Group

Several hedge funds have recently made changes to their positions in PAG. Sound Income Strategies LLC purchased a new stake in shares of Penske Automotive Group during the second quarter worth approximately $34,000. Acadian Asset Management LLC purchased a new stake in shares of Penske Automotive Group during the first quarter worth approximately $42,000. UMB Bank n.a. increased its stake in shares of Penske Automotive Group by 421.5% during 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 increased its stake in shares of Penske Automotive Group by 51.9% during the first quarter. GAMMA Investing LLC now owns 398 shares of the company's stock worth $57,000 after buying an additional 136 shares during the period. Finally, Brooklyn Investment Group increased its stake in 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 purchasing an additional 353 shares during the last quarter. Institutional investors and hedge funds own 77.08% of the company's stock.

Insider Buying and Selling at Penske Automotive Group

In other news, CEO Roger S. Penske sold 77,357 shares of the stock in a transaction dated 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 sale, the chief executive officer owned 140,042 shares of the company's stock, valued at approximately $22,598,577.54. This represents a 35.58% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, Director Greg C. Smith sold 1,529 shares of the stock in a transaction dated Tuesday, June 3rd. The stock was 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. Insiders have sold 82,044 shares of company stock valued at $13,257,948 over the last 90 days. 52.40% of the stock is owned by insiders.

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 given a $1.32 dividend. The ex-dividend date of this dividend is Friday, August 15th. This is an increase from Penske Automotive Group's previous quarterly dividend of $1.26. This represents a $5.28 dividend on an annualized basis and a yield of 3.0%. Penske Automotive Group's dividend payout ratio is currently 36.74%.

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

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.