Zacks Research Has Negative Estimate for PAG Q1 Earnings

Key Points

• Zacks Research lowered its Q1 2027 EPS estimate for Penske Automotive Group to $3.45 from $3.50. Its full-year 2027 estimate is $14.30 per share, compared with the current full-year consensus of $13.43.
• Penske’s latest quarterly results exceeded expectations, with EPS of $3.05 versus the $2.91 consensus and revenue of $7.86 billion. However, revenue declined 1.1% year over year.
• The company raised its quarterly dividend to $1.44 per share, its 23rd consecutive increase, while its board formed a special committee to review a take-private bid from Penske Corp. and Mitsui.

Penske Automotive Group, Inc. (NYSE:PAG - Free Report) - Investment analysts at Zacks Research lowered their Q1 2027 earnings estimates for shares of Penske Automotive Group in a note issued to investors on Friday, July 24th. Zacks Research analyst Team now forecasts that the company will post earnings per share of $3.45 for the quarter, down from their previous estimate of $3.50. The consensus estimate for Penske Automotive Group's current full-year earnings is $13.43 per share. Zacks Research also issued estimates for Penske Automotive Group's Q2 2027 earnings at $3.49 EPS, Q3 2027 earnings at $3.66 EPS, Q4 2027 earnings at $3.70 EPS, FY2027 earnings at $14.30 EPS, Q1 2028 earnings at $3.71 EPS, Q2 2028 earnings at $3.64 EPS and FY2028 earnings at $14.94 EPS.

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

Several other equities analysts have also recently issued reports on the company. Weiss Ratings upgraded Penske Automotive Group from a "hold (c+)" rating to a "buy (b-)" rating in a research report on Friday, July 10th. Barclays raised their price target on Penske Automotive Group from $190.00 to $220.00 and gave the company an "overweight" rating in a report on Wednesday, July 15th. Morgan Stanley restated an "overweight" rating and issued a $190.00 price target on shares of Penske Automotive Group in a research note on Thursday, May 7th. UBS Group set a $190.00 price objective on Penske Automotive Group in a report on Friday, July 10th. Finally, Benchmark cut Penske Automotive Group from a "buy" rating to a "hold" rating in a research report on Wednesday. Five analysts have rated the stock with a Buy rating and five have given a Hold rating to the company. According to MarketBeat.com, the company presently has an average rating of "Moderate Buy" and an average price target of $196.00.

Penske Automotive Group Price Performance

Shares of NYSE:PAG opened at $217.56 on Monday. Penske Automotive Group has a 52 week low of $140.12 and a 52 week high of $219.09. The company has a 50-day moving average price of $180.75 and a 200 day moving average price of $166.93. The company has a market cap of $14.30 billion, a P/E ratio of 16.24, a PEG ratio of 2.81 and a beta of 0.87. The company has a quick ratio of 0.22, a current ratio of 0.96 and a debt-to-equity ratio of 0.39.

Penske Automotive Group Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Tuesday, September 1st. Shareholders of record on Friday, August 14th will be given a dividend of $1.44 per share. The ex-dividend date is Friday, August 14th. This is an increase from Penske Automotive Group's previous quarterly dividend of $1.42. This represents a $5.76 dividend on an annualized basis and a yield of 2.6%. Penske Automotive Group's dividend payout ratio (DPR) is presently 42.39%.

Insider Activity

In other Penske Automotive Group news, Director Greg C. Smith sold 1,488 shares of the firm's stock in a transaction on Monday, May 18th. The stock was sold at an average price of $160.02, for a total transaction of $238,109.76. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, CFO Michelle Hulgrave sold 1,500 shares of the stock in a transaction on Tuesday, June 2nd. The shares were sold at an average price of $171.80, for a total value of $257,700.00. Following the sale, the chief financial officer directly owned 17,596 shares in the company, valued at approximately $3,022,992.80. The trade was a 7.86% decrease in their position. The disclosure for this sale is available in the SEC filing. 52.90% of the stock is owned by corporate insiders.

Institutional Trading of Penske Automotive Group

A number of hedge funds have recently bought and sold shares of the company. Diamant Asset Management Inc. lifted its stake in shares of Penske Automotive Group by 14,852.0% during the 1st quarter. Diamant Asset Management Inc. now owns 884,411 shares of the company's stock worth $132,237,000 after purchasing an additional 878,496 shares during the period. Bank of Montreal Can grew its position in shares of Penske Automotive Group by 39,232.7% in the fourth quarter. Bank of Montreal Can now owns 863,352 shares of the company's stock valued at $136,660,000 after purchasing an additional 861,157 shares during the period. Norges Bank purchased a new stake in shares of Penske Automotive Group in the fourth quarter valued at $32,137,000. Dimensional Fund Advisors LP increased its stake in Penske Automotive Group by 13.7% in the fourth quarter. Dimensional Fund Advisors LP now owns 1,293,467 shares of the company's stock valued at $204,761,000 after purchasing an additional 156,308 shares during the last quarter. Finally, Bank of New York Mellon Corp increased its stake in Penske Automotive Group by 48.6% in the fourth quarter. Bank of New York Mellon Corp now owns 375,767 shares of the company's stock valued at $59,480,000 after purchasing an additional 122,895 shares during the last quarter. Institutional investors and hedge funds own 77.08% of the company's stock.

Key Stories Impacting Penske Automotive Group

Here are the key news stories impacting Penske Automotive Group this week:

• Positive Sentiment: Penske Automotive confirmed receipt of a take-private bid, and the board created a special committee to review the offer, increasing speculation that a buyout could be completed at a premium. Penske Automotive Group Confirms Receipt of Take-Private Bid from Penske Corp., Mitsui
• Positive Sentiment: Penske Automotive announced its 23rd consecutive quarterly dividend increase, lifting the payout to $1.44 per share, which signals financial strength and supports shareholder returns. PENSKE AUTOMOTIVE GROUP ANNOUNCES 23RD QUARTERLY DIVIDEND INCREASE

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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