Zacks Research Issues Pessimistic Estimate for PAG Earnings

Key Points

• Zacks Research lowered its Q2 2027 EPS estimate for Penske to $3.59 (from $3.63) and updated multi-quarter forecasts, projecting FY2027 EPS of $14.61 and FY2028 EPS of $15.86.
• Penske missed its most recent quarter with EPS of $2.91 vs. the $3.19 consensus, while revenue of $7.77 billion topped estimates but was down 3.8% year-over-year.
• Several brokers have trimmed price targets though the stock holds a "Moderate Buy" consensus with an average target of $181.14; shares trade near $155 and Penske recently raised its quarterly dividend to $1.40 (3.6% yield).

Penske Automotive Group, Inc. (NYSE:PAG - Free Report) - Research analysts at Zacks Research lowered their Q2 2027 EPS estimates for shares of Penske Automotive Group in a report released on Thursday, April 9th. Zacks Research analyst Team now forecasts that the company will post earnings per share of $3.59 for the quarter, down from their previous estimate of $3.63. 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 Q3 2027 earnings at $3.70 EPS, Q4 2027 earnings at $3.70 EPS, FY2027 earnings at $14.61 EPS, Q1 2028 earnings at $4.09 EPS and FY2028 earnings at $15.86 EPS.

Penske Automotive Group (NYSE:PAG - Get Free Report) last issued its earnings results on Wednesday, February 11th. The company reported $2.91 earnings per share (EPS) for the quarter, missing the consensus estimate of $3.19 by ($0.28). The business had revenue of $7.77 billion during the quarter, compared to the consensus estimate of $7.62 billion. Penske Automotive Group had a net margin of 2.91% and a return on equity of 15.77%. The firm's revenue for the quarter was down 3.8% compared to the same quarter last year. During the same period last year, the business posted $3.54 EPS.

A number of other brokerages also recently weighed in on PAG. Citigroup cut their price target on shares of Penske Automotive Group from $200.00 to $193.00 and set a "buy" rating on the stock in a research report on Wednesday. Weiss Ratings downgraded shares of Penske Automotive Group from a "buy (b-)" rating to a "hold (c+)" rating in a research report on Monday, March 16th. 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 research report on Tuesday. Finally, JPMorgan Chase & Co. cut their price target on shares of Penske Automotive Group from $175.00 to $170.00 and set a "neutral" rating on the stock in a research report on Friday, March 20th. Six research analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the company's stock. According to MarketBeat, the stock presently has an average rating of "Moderate Buy" and an average price target of $181.14.

Penske Automotive Group Stock Performance

Shares of NYSE:PAG opened at $155.15 on Friday. The company has a market capitalization of $10.20 billion, a price-to-earnings ratio of 11.49, a P/E/G ratio of 1.61 and a beta of 0.87. The firm's 50 day simple moving average is $156.04 and its 200 day simple moving average is $161.60. The company has a debt-to-equity ratio of 0.32, a current ratio of 0.99 and a quick ratio of 0.22. Penske Automotive Group has a fifty-two week low of $140.12 and a fifty-two week high of $189.51.

Penske Automotive Group Increases Dividend

The business also recently announced a quarterly dividend, which was paid on Thursday, March 5th. Shareholders of record on Wednesday, February 25th were issued a dividend of $1.40 per share. This is an increase from Penske Automotive Group's previous quarterly dividend of $1.38. The ex-dividend date was Wednesday, February 25th. This represents a $5.60 annualized dividend and a yield of 3.6%. Penske Automotive Group's dividend payout ratio is 41.48%.

Institutional Trading of Penske Automotive Group

Several hedge funds have recently bought and sold shares of the stock. Victory Capital Management Inc. raised its holdings in Penske Automotive Group by 6.7% during the 4th quarter. Victory Capital Management Inc. now owns 1,484,075 shares of the company's stock worth $234,914,000 after buying an additional 92,794 shares during the period. Dimensional Fund Advisors LP raised its holdings in Penske Automotive Group by 13.7% during the 4th quarter. Dimensional Fund Advisors LP now owns 1,293,467 shares of the company's stock worth $204,761,000 after buying an additional 156,308 shares during the period. Bank of Montreal Can raised its holdings in Penske Automotive Group by 39,232.7% during the 4th quarter. Bank of Montreal Can now owns 863,352 shares of the company's stock worth $136,660,000 after buying an additional 861,157 shares during the period. AQR Capital Management LLC raised its holdings in Penske Automotive Group by 6.6% during the 3rd quarter. AQR Capital Management LLC now owns 726,490 shares of the company's stock worth $125,043,000 after buying an additional 44,749 shares during the period. Finally, State Street Corp raised its holdings in Penske Automotive Group by 3.3% during the 4th quarter. State Street Corp now owns 632,879 shares of the company's stock worth $100,178,000 after buying an additional 20,267 shares during the period. 77.08% of the stock is currently owned by institutional investors and hedge funds.

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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