Research Analysts Issue Forecasts for PAG FY2027 Earnings

Key Points

• Zacks Research has raised its FY2027 earnings per share estimate for Penske Automotive Group to $15.13, indicating positive growth from the previous estimate of $15.06.
• Multiple analysts have upgraded their ratings for Penske Automotive Group, with Citigroup raising the price target from $185 to $195 and Bank of America increasing it from $190 to $205.
• Penske Automotive Group has announced a new quarterly dividend of $1.32 per share, up from $1.26, and plans to repurchase $250 million in outstanding shares, indicating confidence in its stock value.

Penske Automotive Group, Inc. (NYSE:PAG - Free Report) - Research analysts at Zacks Research upped their FY2027 EPS estimates for shares of Penske Automotive Group in a report released on Wednesday, August 13th. Zacks Research analyst L. Sahu now expects that the company will post earnings per share of $15.13 for the year, up from their prior forecast of $15.06. The consensus estimate for Penske Automotive Group's current full-year earnings is $13.86 per share.

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 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 company's revenue was down .4% on a year-over-year basis. During the same period last year, the firm posted $3.61 EPS.

A number of other research analysts also recently commented on the stock. JPMorgan Chase & Co. raised shares of Penske Automotive Group from an "underweight" rating to a "neutral" rating and increased their target price for the company from $155.00 to $175.00 in a research report on Tuesday, August 5th. Morgan Stanley increased their price target on shares of Penske Automotive Group from $180.00 to $190.00 and gave the stock an "overweight" rating in a research note on Thursday, August 14th. Stephens reiterated 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. Wall Street Zen upgraded shares of Penske Automotive Group from a "hold" rating to a "buy" rating in a research note on Wednesday, April 23rd. Finally, Citigroup increased their price target on shares of Penske Automotive Group from $185.00 to $195.00 and gave the stock a "buy" rating in a research note on Monday, May 19th. Four research analysts have rated the stock with a Buy rating and two have given a Hold rating to the company. According to data from MarketBeat, the company has an average rating of "Moderate Buy" and an average target price of $181.00.

Penske Automotive Group Stock Down 0.9%

Shares of NYSE PAG traded down $1.6330 during mid-day trading on Friday, reaching $182.1870. The company had a trading volume of 220,458 shares, compared to its average volume of 241,235. The company has a current ratio of 0.90, a quick ratio of 0.21 and a debt-to-equity ratio of 0.16. The firm has a 50 day simple moving average of $174.91 and a two-hundred day simple moving average of $164.45. The stock has a market cap of $12.03 billion, a P/E ratio of 12.68 and a beta of 0.87. Penske Automotive Group has a 52-week low of $134.05 and a 52-week high of $186.55.

Hedge Funds Weigh In On Penske Automotive Group

Several hedge funds have recently added to or reduced their stakes in the business. Public Sector Pension Investment Board purchased a new position in Penske Automotive Group during the 2nd quarter valued at about $6,500,000. Tower Research Capital LLC TRC increased its holdings in Penske Automotive Group by 127.2% during the 2nd quarter. Tower Research Capital LLC TRC now owns 2,504 shares of the company's stock valued at $430,000 after acquiring an additional 1,402 shares in the last quarter. Corient Private Wealth LLC increased its holdings in Penske Automotive Group by 6.1% during the 2nd quarter. Corient Private Wealth LLC now owns 10,946 shares of the company's stock valued at $1,881,000 after acquiring an additional 625 shares in the last quarter. Captrust Financial Advisors increased its holdings in Penske Automotive Group by 40.1% during the 2nd quarter. Captrust Financial Advisors now owns 3,828 shares of the company's stock valued at $658,000 after acquiring an additional 1,095 shares in the last quarter. Finally, Blue Chip Partners LLC increased its holdings in Penske Automotive Group by 0.8% during the 2nd quarter. Blue Chip Partners LLC now owns 11,810 shares of the company's stock valued at $2,029,000 after acquiring an additional 92 shares in the last quarter. 77.08% of the stock is currently owned by hedge funds and other institutional investors.

Insider Buying and Selling

In related news, CEO Roger S. Penske sold 77,357 shares of the firm's stock in a transaction dated 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 owned 140,042 shares in the company, valued at $22,598,577.54. This trade 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 is available at this link. Also, Director Greg C. Smith sold 1,529 shares of the firm's stock in a transaction dated 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 84,748 shares of company stock worth $13,748,660. 52.40% of the stock is currently owned by insiders.

Penske Automotive Group declared that its board has authorized a stock buyback plan on Wednesday, May 14th that allows the company to buyback $250.00 million in shares. This buyback authorization allows the company to repurchase up to 2.3% of its stock through open market purchases. Stock buyback plans are generally a sign that the company's management believes its stock is undervalued.

Penske Automotive Group Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Wednesday, September 3rd. Stockholders of record on Friday, August 15th will be paid a $1.32 dividend. This is a boost 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 dividend yield of 2.9%. Penske Automotive Group's dividend payout ratio (DPR) is 36.74%.

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.