Penske Automotive Group (NYSE:PAG) Rating Lowered to “Neutral” at Citigroup

Penske Automotive Group (NYSE:PAG) was downgraded by research analysts at Citigroup from a “buy” rating to a “neutral” rating in a report issued on Thursday. They currently have a $210.00 price objective on the stock. Citigroup’s target price would indicate a potential downside of 1.96% from the stock’s previous close.

Other research analysts have also recently issued research reports about the stock. UBS Group set a $190.00 target price on shares of Penske Automotive Group in a report on Friday, July 10th. Barclays lifted their price target on shares of Penske Automotive Group from $190.00 to $220.00 and gave the stock an “overweight” rating in a research note on Wednesday, July 15th. Bank of America upped their price objective on shares of Penske Automotive Group from $200.00 to $238.00 and gave the company a “buy” rating in a research note on Thursday, July 9th. Stephens raised their price objective on Penske Automotive Group from $155.00 to $160.00 and gave the stock an “equal weight” rating in a report on Monday, May 4th. Finally, Weiss Ratings raised Penske Automotive Group from a “hold (c+)” rating to a “buy (b-)” rating in a report on Friday, July 10th. Five equities research analysts have rated the stock with a Buy rating and five have issued a Hold rating to the company’s stock. According to MarketBeat, the stock has an average rating of “Moderate Buy” and a consensus target price of $196.00.

Penske Automotive Group Stock Performance

Shares of PAG stock opened at $214.19 on Thursday. The company has a market cap of $14.08 billion, a P/E ratio of 15.98, a PEG ratio of 2.53 and a beta of 0.87. The firm has a fifty day moving average price of $178.72 and a 200 day moving average price of $166.13. The company has a current ratio of 0.96, a quick ratio of 0.22 and a debt-to-equity ratio of 0.39. Penske Automotive Group has a 12 month low of $140.12 and a 12 month high of $219.09.

Penske Automotive Group (NYSE:PAG) last announced its quarterly earnings results on Wednesday, April 29th. The company reported $3.05 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $2.91 by $0.14. Penske Automotive Group had a return on equity of 15.13% and a net margin of 2.85%.The company had revenue of $7.86 billion during the quarter, compared to the consensus estimate of $7.71 billion. During the same period in the previous year, the business earned $3.66 EPS. Penske Automotive Group’s revenue for the quarter was down 1.1% on a year-over-year basis. Sell-side analysts predict that Penske Automotive Group will post 13.43 earnings per share for the current fiscal year.

Insider Activity at Penske Automotive Group

In other news, Director Greg C. Smith sold 1,488 shares of the company’s stock in a transaction that occurred on Monday, May 18th. The stock was sold at an average price of $160.02, for a total transaction of $238,109.76. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CFO Michelle Hulgrave sold 1,500 shares of Penske Automotive Group stock in a transaction on Tuesday, June 2nd. The shares were sold at an average price of $171.80, for a total transaction of $257,700.00. Following the completion of the transaction, the chief financial officer owned 17,596 shares in the company, valued at approximately $3,022,992.80. This trade represents a 7.86% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Company insiders own 52.90% of the company’s stock.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently made changes to their positions in the company. Handelsbanken Fonder AB boosted its holdings in Penske Automotive Group by 1.7% in the 2nd quarter. Handelsbanken Fonder AB now owns 6,016 shares of the company’s stock valued at $1,077,000 after purchasing an additional 100 shares in the last quarter. Hennion & Walsh Asset Management Inc. grew its stake in shares of Penske Automotive Group by 102.5% during the 2nd quarter. Hennion & Walsh Asset Management Inc. now owns 6,426 shares of the company’s stock worth $1,150,000 after purchasing an additional 3,253 shares during the period. GAMMA Investing LLC lifted its stake in shares of Penske Automotive Group by 26.5% in the second quarter. GAMMA Investing LLC now owns 429 shares of the company’s stock valued at $77,000 after purchasing an additional 90 shares during the period. Versant Capital Management Inc grew its position in Penske Automotive Group by 179.0% during the second quarter. Versant Capital Management Inc now owns 279 shares of the company’s stock worth $50,000 after buying an additional 179 shares during the period. Finally, CX Institutional lifted its position in shares of Penske Automotive Group by 260.3% during the 2nd quarter. CX Institutional now owns 7,436 shares of the company’s stock valued at $1,331,000 after acquiring an additional 5,372 shares during the period. 77.08% of the stock is currently owned by institutional investors and hedge funds.

Key Penske Automotive Group News

Here are the key news stories impacting Penske Automotive Group this week:

• Positive Sentiment: Penske Automotive confirmed it received an unsolicited, preliminary, non-binding proposal from Penske Corporation and Mitsui & Co. to take the company private, sparking speculation that shareholders could receive a buyout premium. PENSKE AUTOMOTIVE GROUP CONFIRMS RECEIPT OF UNSOLICITED, PRELIMINARY AND NON-BINDING TAKE PRIVATE PROPOSAL
• Positive Sentiment: Reports said Penske Corp. and Mitsui offered about $210 per share, valuing the company at nearly $4 billion and reinforcing takeover momentum. Penske, Mitsui Bid to Take Penske Automotive Private in Near $4 Billion Deal
• Positive Sentiment: The board approved a 23rd consecutive quarterly dividend increase to $1.44 per share, signaling confidence in cash flow and returning more capital to investors. PENSKE AUTOMOTIVE GROUP ANNOUNCES 23RD QUARTERLY DIVIDEND INCREASE
• Neutral Sentiment: Recent commentary notes the stock surged sharply on heavy volume, but some analysts caution that earnings estimate revisions may limit further upside in the near term. Penske (PAG) Soars 9.9%: Is Further Upside Left in the Stock?
• Negative Sentiment: Some pre-deal coverage suggests the company may be facing weaker near-term earnings expectations, which could temper enthusiasm if the buyout process stalls or fails. Analysts Estimate Penske Automotive (PAG) to Report a Decline in Earnings: What to Look Out for

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.