Penske Automotive Group, Inc. (NYSE:PAG) Given Consensus Rating of “Moderate Buy” by Brokerages

Shares of Penske Automotive Group, Inc. (NYSE:PAG) have earned an average recommendation of “Moderate Buy” from the six research firms that are presently covering the stock, Marketbeat.com reports. One research analyst has rated the stock with a sell recommendation, one has given a hold recommendation and four have assigned a buy recommendation to the company. The average 1 year price target among brokerages that have issued a report on the stock in the last year is $167.00.

Several research analysts have issued reports on the stock. JPMorgan Chase & Co. lowered their price objective on shares of Penske Automotive Group from $165.00 to $140.00 and set an “underweight” rating on the stock in a research report on Thursday, March 27th. Wall Street Zen raised shares of Penske Automotive Group from a “hold” rating to a “buy” rating in a research report on Wednesday, April 23rd. Citigroup raised their price objective on shares of Penske Automotive Group from $185.00 to $195.00 and gave the stock a “buy” rating in a research report on Monday, May 19th. Finally, Stephens reissued an “equal weight” rating and set a $140.00 price objective on shares of Penske Automotive Group in a research report on Wednesday.

Penske Automotive Group Trading Down 1.0%

NYSE PAG opened at $168.31 on Thursday. The company has a debt-to-equity ratio of 0.22, a current ratio of 0.91 and a quick ratio of 0.20. The firm’s fifty day moving average price is $158.19 and its 200 day moving average price is $159.37. The company has a market capitalization of $11.14 billion, a price-to-earnings ratio of 12.24 and a beta of 0.91. Penske Automotive Group has a 12 month low of $134.05 and a 12 month high of $180.12.

Penske Automotive Group (NYSE:PAG) last posted its earnings results on Wednesday, April 30th. The company reported $3.39 EPS for the quarter, beating analysts’ consensus estimates of $3.27 by $0.12. Penske Automotive Group had a net margin of 3.02% and a return on equity of 18.05%. The firm had revenue of $7.60 billion for the quarter, compared to the consensus estimate of $7.68 billion. During the same period last year, the firm posted $3.21 EPS. The company’s revenue was up 2.1% on a year-over-year basis. On average, sell-side analysts expect that Penske Automotive Group will post 13.86 earnings per share for the current fiscal year.

Penske Automotive Group Increases Dividend

The company also recently announced a quarterly dividend, which was paid on Tuesday, June 3rd. Stockholders of record on Tuesday, May 27th were issued a $1.26 dividend. This is an increase from Penske Automotive Group’s previous quarterly dividend of $1.22. The ex-dividend date of this dividend was Tuesday, May 27th. This represents a $5.04 annualized dividend and a dividend yield of 2.99%. Penske Automotive Group’s payout ratio is presently 35.49%.

Penske Automotive Group announced that its Board of Directors has authorized a stock buyback plan on Wednesday, May 14th that permits the company to repurchase $250.00 million in outstanding shares. This repurchase authorization permits the company to buy up to 2.3% of its shares through open market purchases. Shares repurchase plans are typically an indication that the company’s leadership believes its shares are undervalued.

Insider Activity

In related news, Director Greg C. Smith sold 1,529 shares of the firm’s stock in a transaction dated Tuesday, June 3rd. The shares were sold at an average price of $161.64, for a total value of $247,147.56. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CEO Roger S. Penske sold 77,357 shares of the firm’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 sale, the chief executive officer now owns 140,042 shares of the company’s stock, valued at $22,598,577.54. This trade represents a 35.58% decrease in their position. The disclosure for this sale can be found here. Insiders have sold a total of 82,044 shares of company stock valued at $13,257,948 over the last quarter. Corporate insiders own 51.70% of the company’s stock.

Institutional Trading of Penske Automotive Group

Hedge funds and other institutional investors have recently made changes to their positions in the stock. Two Sigma Investments LP lifted its stake in shares of Penske Automotive Group by 21.0% in the fourth quarter. Two Sigma Investments LP now owns 10,253 shares of the company’s stock valued at $1,563,000 after purchasing an additional 1,777 shares during the period. Blue Trust Inc. lifted its stake in shares of Penske Automotive Group by 28.3% in the fourth quarter. Blue Trust Inc. now owns 1,221 shares of the company’s stock valued at $198,000 after purchasing an additional 269 shares during the period. Bank of Montreal Can raised its position in Penske Automotive Group by 6.4% during the fourth quarter. Bank of Montreal Can now owns 2,651 shares of the company’s stock worth $404,000 after acquiring an additional 160 shares during the last quarter. Rhumbline Advisers raised its position in Penske Automotive Group by 4.7% during the fourth quarter. Rhumbline Advisers now owns 54,063 shares of the company’s stock worth $8,241,000 after acquiring an additional 2,446 shares during the last quarter. Finally, KBC Group NV raised its position in Penske Automotive Group by 33.5% during the fourth quarter. KBC Group NV now owns 749 shares of the company’s stock worth $114,000 after acquiring an additional 188 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.