Zacks Research Has Pessimistic Outlook of PAG Q4 Earnings

Key Points

• Zacks Research slightly lowered Penske Automotive Group’s Q4 2027 EPS estimate to $3.72 from $3.73, signaling a more cautious near-term outlook. The consensus full-year earnings estimate remains $13.44 per share.
• Penske recently beat expectations in its latest quarter, reporting EPS of $3.05 versus $2.91 expected and revenue of $7.86 billion versus $7.71 billion expected, though revenue was still down 1.1% year over year.
• Analyst sentiment is still generally positive: the stock carries a Moderate Buy consensus with an average price target of $182.63, and Penske also raised its quarterly dividend to $1.42 per share.

Penske Automotive Group, Inc. (NYSE:PAG - Free Report) - Zacks Research lowered their Q4 2027 EPS estimates for Penske Automotive Group in a research report issued on Friday, May 29th. Zacks Research analyst Team now anticipates that the company will earn $3.72 per share for the quarter, down from their previous forecast of $3.73. The consensus estimate for Penske Automotive Group's current full-year earnings is $13.44 per share.

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

Other equities analysts also recently issued research reports about the stock. Barclays cut their price target on shares of Penske Automotive Group from $195.00 to $190.00 and set an "overweight" rating on the stock in a report on Tuesday, April 7th. Stephens increased their price target on shares of Penske Automotive Group from $155.00 to $160.00 and gave the stock an "equal weight" rating in a report on Monday, May 4th. Weiss Ratings downgraded shares of Penske Automotive Group from a "buy (b-)" rating to a "hold (c+)" rating in a report on Monday, March 16th. Citigroup increased their price target on shares of Penske Automotive Group from $193.00 to $199.00 and gave the stock a "buy" rating in a report on Wednesday, May 6th. Finally, UBS Group began coverage on shares of Penske Automotive Group in a report on Wednesday, May 27th. They issued a "neutral" rating and a $167.00 price target on the stock. Six equities research analysts have rated the stock with a Buy rating and four have assigned a Hold rating to the stock. According to MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and a consensus price target of $182.63.

Penske Automotive Group Price Performance

Shares of NYSE:PAG opened at $170.43 on Tuesday. Penske Automotive Group has a twelve month low of $140.12 and a twelve month high of $189.51. The company's 50 day moving average is $159.47 and its 200 day moving average is $160.76. The company has a current ratio of 0.96, a quick ratio of 0.22 and a debt-to-equity ratio of 0.39. The company has a market cap of $11.21 billion, a PE ratio of 12.72, a price-to-earnings-growth ratio of 2.17 and a beta of 0.87.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently made changes to their positions in PAG. Navalign LLC purchased a new position in shares of Penske Automotive Group during the 4th quarter valued at approximately $26,000. International Assets Investment Management LLC purchased a new position in shares of Penske Automotive Group during the 4th quarter valued at approximately $30,000. Rothschild Investment LLC lifted its position in shares of Penske Automotive Group by 935.3% during the 3rd quarter. Rothschild Investment LLC now owns 176 shares of the company's stock valued at $31,000 after buying an additional 159 shares in the last quarter. Acadian Asset Management LLC acquired a new position in Penske Automotive Group in the 1st quarter valued at $42,000. Finally, Global Retirement Partners LLC raised its stake in Penske Automotive Group by 186.6% in the 4th quarter. Global Retirement Partners LLC now owns 321 shares of the company's stock valued at $51,000 after purchasing an additional 209 shares during the last quarter. Hedge funds and other institutional investors own 77.08% of the company's stock.

Insider Activity

In other news, Director Greg C. Smith sold 1,488 shares of the stock in a transaction that occurred on Monday, May 18th. The stock was sold at an average price of $160.02, for a total transaction of $238,109.76. The sale was disclosed in a document filed with the SEC, which is available at the SEC website. 52.90% of the stock is owned by company insiders.

Penske Automotive Group Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Wednesday, June 3rd. Stockholders of record on Tuesday, May 26th will be given a dividend of $1.42 per share. This is a positive change from Penske Automotive Group's previous quarterly dividend of $1.40. The ex-dividend date is Tuesday, May 26th. This represents a $5.68 dividend on an annualized basis and a dividend yield of 3.3%. Penske Automotive Group's payout ratio is 42.39%.

Penske Automotive Group Company Profile

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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