Zacks Research Issues Pessimistic Estimate for PAG Earnings

Key Points

• Zacks Research cut its Q1 2027 EPS estimate for Penske to $3.62 from $3.84, and the company recently missed the prior quarter's EPS ($2.91 vs. $3.19) while reporting $7.77 billion in revenue, down 3.8% year‑over‑year.
• Several analysts (JPMorgan, Citi, Barclays) have trimmed price targets, but the consensus remains a Moderate Buy with an average target of $181.14; the stock trades near $156 with a P/E of about 11.6 and a market cap of $10.27 billion.
• Penske raised its quarterly dividend to $1.40 (annualized $5.60) for a yield of roughly 3.6%, and institutional investors now own about 77% of the company.

Penske Automotive Group, Inc. (NYSE:PAG - Free Report) - Research analysts at Zacks Research lowered their Q1 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 $3.62 for the quarter, down from their previous estimate of $3.84. 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 quarterly 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). Penske Automotive Group had a return on equity of 15.77% and a net margin of 2.91%.The company had revenue of $7.77 billion during the quarter, compared to the consensus estimate of $7.62 billion. During the same quarter in the prior year, the business earned $3.54 earnings per share. The firm's revenue for the quarter was down 3.8% on a year-over-year basis.

Several other research analysts have also weighed in on the stock. JPMorgan Chase & Co. reduced their price objective on shares of Penske Automotive Group from $175.00 to $170.00 and set a "neutral" rating on the stock in a research note on Friday, March 20th. Citigroup reduced their target price on Penske Automotive Group from $200.00 to $193.00 and set a "buy" rating on the stock in a report on Wednesday, April 8th. Barclays reduced their target price on Penske Automotive Group from $195.00 to $190.00 and set an "overweight" rating on the stock in a report on Tuesday, April 7th. Finally, Weiss Ratings lowered shares of Penske Automotive Group from a "buy (b-)" rating to a "hold (c+)" rating in a research note on Monday, March 16th. Six analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the company. According to MarketBeat, the stock currently has an average rating of "Moderate Buy" and an average target price of $181.14.

Penske Automotive Group Stock Up 0.1%

Penske Automotive Group stock opened at $156.25 on Monday. The company's 50 day simple moving average is $156.03 and its 200 day simple moving average is $161.30. Penske Automotive Group has a fifty-two week low of $140.12 and a fifty-two week high of $189.51. The firm has a market capitalization of $10.27 billion, a price-to-earnings ratio of 11.57, a PEG ratio of 1.65 and a beta of 0.87. 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 Increases Dividend

The company also recently declared a quarterly dividend, which was paid on Thursday, March 5th. Stockholders of record on Wednesday, February 25th were issued a $1.40 dividend. This represents a $5.60 dividend on an annualized basis and a dividend yield of 3.6%. This is a positive change from Penske Automotive Group's previous quarterly dividend of $1.38. The ex-dividend date was Wednesday, February 25th. Penske Automotive Group's dividend payout ratio is presently 41.48%.

Institutional Trading of Penske Automotive Group

A number of institutional investors have recently made changes to their positions in the business. Victory Capital Management Inc. lifted its position in shares of Penske Automotive Group by 6.7% in the fourth quarter. Victory Capital Management Inc. now owns 1,484,075 shares of the company's stock worth $234,914,000 after purchasing an additional 92,794 shares in the last quarter. Dimensional Fund Advisors LP raised its holdings in Penske Automotive Group by 13.7% during the fourth quarter. Dimensional Fund Advisors LP now owns 1,293,467 shares of the company's stock worth $204,761,000 after acquiring an additional 156,308 shares in the last quarter. Bank of Montreal Can raised its holdings in Penske Automotive Group by 39,232.7% during the fourth quarter. Bank of Montreal Can now owns 863,352 shares of the company's stock worth $136,660,000 after acquiring an additional 861,157 shares in the last quarter. AQR Capital Management LLC raised its holdings in Penske Automotive Group by 6.6% during the third quarter. AQR Capital Management LLC now owns 726,490 shares of the company's stock worth $125,043,000 after acquiring an additional 44,749 shares in the last quarter. Finally, State Street Corp raised its holdings in Penske Automotive Group by 3.3% during the fourth quarter. State Street Corp now owns 632,879 shares of the company's stock worth $100,178,000 after acquiring an additional 20,267 shares in the last quarter. Institutional investors own 77.08% of the company's stock.

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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