Zacks Research Has Positive Forecast for PAG Q3 Earnings

Key Points

• Zacks Research has raised its earnings estimate for Penske Automotive Group for Q3 2025 to $3.52 per share, up from a previous estimate of $3.47.
• Penske Automotive Group reported Q2 earnings of $3.78 per share, exceeding analysts' expectations of $3.56, despite a slight decline in revenue.
• The company has increased its quarterly dividend to $1.32 per share, representing a 2.8% dividend yield.

Penske Automotive Group, Inc. (NYSE:PAG - Free Report) - Analysts at Zacks Research raised their Q3 2025 earnings per share (EPS) estimates for shares of Penske Automotive Group in a research note issued to investors on Wednesday, August 13th. Zacks Research analyst L. Sahu now anticipates that the company will post earnings of $3.52 per share for the quarter, up from their prior forecast of $3.47. The consensus estimate for Penske Automotive Group's current full-year earnings is $13.86 per share. Zacks Research also issued estimates for Penske Automotive Group's Q4 2025 earnings at $3.31 EPS, FY2025 earnings at $14.00 EPS, Q1 2026 earnings at $3.18 EPS, Q2 2026 earnings at $3.81 EPS, Q3 2026 earnings at $3.43 EPS, Q4 2026 earnings at $3.46 EPS, FY2026 earnings at $13.87 EPS, Q1 2027 earnings at $3.67 EPS and Q2 2027 earnings at $3.78 EPS.

Penske Automotive Group (NYSE:PAG - Get Free Report) last released its quarterly earnings data 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. Penske Automotive Group had a return on equity of 17.43% and a net margin of 3.13%. The business had revenue of $7.66 billion during the quarter, compared to analyst estimates of $7.98 billion. During the same quarter in the previous year, the firm posted $3.61 EPS. The business's revenue for the quarter was down .4% compared to the same quarter last year.

Other research analysts have also issued research reports about the company. Stephens reiterated an "equal weight" rating and set a $140.00 price target on shares of Penske Automotive Group in a research report on Wednesday, June 11th. Bank of America boosted their target price on Penske Automotive Group from $190.00 to $205.00 and gave the stock a "buy" rating in a research report on Monday, June 16th. Wall Street Zen raised Penske Automotive Group from a "hold" rating to a "buy" rating in a research report on Wednesday, April 23rd. Citigroup upped their price target on Penske Automotive Group from $185.00 to $195.00 and gave the company a "buy" rating in a research report on Monday, May 19th. Finally, Morgan Stanley reaffirmed an "overweight" rating and issued a $190.00 target price (up from $180.00) on shares of Penske Automotive Group in a research report on Thursday. Two research analysts have rated the stock with a hold rating and five have assigned a buy rating to the company's stock. According to MarketBeat, the stock has a consensus rating of "Moderate Buy" and a consensus price target of $181.00.

Penske Automotive Group Stock Performance

PAG stock traded down $2.72 during trading on Thursday, reaching $180.34. 200,276 shares of the company's stock were exchanged, compared to its average volume of 254,435. The company has a quick ratio of 0.21, a current ratio of 0.90 and a debt-to-equity ratio of 0.16. Penske Automotive Group has a 1-year low of $134.05 and a 1-year high of $186.55. The company's fifty day moving average price is $174.36 and its 200-day moving average price is $164.24. The firm has a market cap of $11.91 billion, a PE ratio of 12.55 and a beta of 0.87.

Penske Automotive Group announced that its board has authorized a share 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 shares through open market purchases. Shares buyback plans are often a sign that the company's board of directors believes its stock is undervalued.

Penske Automotive Group Increases Dividend

The business also recently declared a quarterly dividend, which will be paid on Wednesday, September 3rd. Stockholders of record on Friday, August 15th will be paid a dividend of $1.32 per share. 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 is currently 35.07%.

Insider Transactions at Penske Automotive Group

In related news, EVP Shane M. Spradlin sold 3,158 shares of the stock in a transaction that occurred on Monday, June 9th. The stock was sold at an average price of $167.10, for a total transaction of $527,701.80. Following the completion of the sale, the executive vice president owned 36,152 shares in the company, valued at $6,040,999.20. This represents a 8.03% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, CEO Roger S. Penske sold 77,357 shares of the 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 sale, the chief executive officer owned 140,042 shares of the company's stock, valued at approximately $22,598,577.54. The trade was a 35.58% decrease in their position. The disclosure for this sale can be found here. In the last quarter, insiders sold 82,044 shares of company stock worth $13,257,948. 51.70% of the stock is owned by corporate insiders.

Institutional Trading of Penske Automotive Group

Several hedge funds have recently added to or reduced their stakes in the business. Cambridge Investment Research Advisors Inc. raised its holdings in Penske Automotive Group by 9.6% in the 1st quarter. Cambridge Investment Research Advisors Inc. now owns 3,367 shares of the company's stock valued at $485,000 after acquiring an additional 295 shares in the last quarter. Two Sigma Investments LP raised its holdings in shares of Penske Automotive Group by 21.0% in the 4th quarter. Two Sigma Investments LP now owns 10,253 shares of the company's stock worth $1,563,000 after buying an additional 1,777 shares in the last quarter. Teacher Retirement System of Texas raised its holdings in shares of Penske Automotive Group by 15.8% in the 1st quarter. Teacher Retirement System of Texas now owns 12,006 shares of the company's stock worth $1,729,000 after buying an additional 1,639 shares in the last quarter. KBC Group NV increased its holdings in Penske Automotive Group by 33.4% during the 1st quarter. KBC Group NV now owns 999 shares of the company's stock valued at $144,000 after purchasing an additional 250 shares in the last quarter. Finally, SG Americas Securities LLC acquired a new stake in Penske Automotive Group during the 1st quarter valued at $648,000. Institutional investors own 77.08% of the company's stock.

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.