Zacks Research Issues Positive Forecast for PAG 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) - Investment analysts at Zacks Research raised their Q3 2025 earnings per share estimates for Penske Automotive Group in a report released on Wednesday, August 13th. Zacks Research analyst L. Sahu now expects that the company will post earnings of $3.52 per share for the quarter, up from their previous 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.

Other equities analysts have also recently issued reports about the stock. Stephens restated an "equal weight" rating and set a $140.00 price target on shares of Penske Automotive Group in a report on Wednesday, June 11th. Morgan Stanley boosted their price target on shares of Penske Automotive Group from $180.00 to $190.00 and gave the company an "overweight" rating in a report on Thursday, August 14th. JPMorgan Chase & Co. upgraded shares of Penske Automotive Group from an "underweight" rating to a "neutral" rating and boosted their price target for the company from $155.00 to $175.00 in a report on Tuesday, August 5th. Citigroup boosted their price target on shares of Penske Automotive Group from $185.00 to $195.00 and gave the company a "buy" rating in a report on Monday, May 19th. Finally, Wall Street Zen upgraded shares of Penske Automotive Group from a "hold" rating to a "buy" rating in a report on Wednesday, April 23rd. Four investment analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the company's stock. Based on data from MarketBeat.com, the company has a consensus rating of "Moderate Buy" and an average price target of $181.00.

Penske Automotive Group Trading Up 1.1%

NYSE PAG traded up $2.0360 on Thursday, hitting $182.5560. 52,820 shares of the stock were exchanged, compared to its average volume of 240,334. Penske Automotive Group has a 52-week low of $134.05 and a 52-week high of $186.55. 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 company has a market capitalization of $12.06 billion, a price-to-earnings ratio of 12.69 and a beta of 0.87. The company's 50-day moving average price is $174.63 and its two-hundred day moving average price is $164.31.

Penske Automotive Group (NYSE:PAG - Get Free Report) last posted its quarterly earnings results on Wednesday, July 30th. The company reported $3.78 earnings per share (EPS) for the quarter, beating the consensus estimate of $3.56 by $0.22. The company had revenue of $7.66 billion for the quarter, compared to analysts' expectations of $7.98 billion. Penske Automotive Group had a return on equity of 17.43% and a net margin of 3.13%.The firm's revenue was down .4% on a year-over-year basis. During the same quarter in the prior year, the company earned $3.61 earnings per share.

Penske Automotive Group declared that its board has initiated a share repurchase plan on Wednesday, May 14th that permits the company to repurchase $250.00 million in shares. This repurchase authorization permits the company to reacquire up to 2.3% of its stock through open market purchases. Stock repurchase plans are usually 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. Shareholders of record on Friday, August 15th will be given a dividend of $1.32 per share. The ex-dividend date of this dividend is Friday, August 15th. This represents a $5.28 dividend on an annualized basis and a yield of 2.9%. This is a positive change from Penske Automotive Group's previous quarterly dividend of $1.26. Penske Automotive Group's dividend payout ratio (DPR) is presently 36.74%.

Insiders Place Their Bets

In other news, CEO Roger S. Penske sold 77,357 shares of the company's 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 completion of the transaction, 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 filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, EVP Shane M. Spradlin sold 3,158 shares of the company's stock in a transaction dated Monday, June 9th. The shares were sold at an average price of $167.10, for a total transaction of $527,701.80. Following the transaction, the executive vice president directly owned 36,152 shares of the company's stock, valued at $6,040,999.20. This represents a 8.03% decrease in their position. The disclosure for this sale can be found here. Insiders sold a total of 82,044 shares of company stock valued at $13,257,948 in the last quarter. Insiders own 52.40% of the company's stock.

Institutional Inflows and Outflows

Hedge funds have recently added to or reduced their stakes in the business. Sound Income Strategies LLC bought a new position in shares of Penske Automotive Group in the second quarter valued at approximately $34,000. Acadian Asset Management LLC bought a new position in shares of Penske Automotive Group in the first quarter valued at approximately $42,000. UMB Bank n.a. raised its stake in shares of Penske Automotive Group by 421.5% in the first quarter. UMB Bank n.a. now owns 339 shares of the company's stock valued at $49,000 after acquiring an additional 274 shares during the last quarter. GAMMA Investing LLC raised its stake in shares of Penske Automotive Group by 51.9% in the first quarter. GAMMA Investing LLC now owns 398 shares of the company's stock valued at $57,000 after acquiring an additional 136 shares during the last quarter. Finally, Brooklyn Investment Group raised its stake in shares of 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 acquiring an additional 353 shares during the last quarter. Institutional investors and hedge funds own 77.08% of the company's stock.

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.