Penske Automotive Group (NYSE:PAG) was upgraded by Zacks Investment Research from a “hold” rating to a “strong-buy” rating in a report issued on Monday. The firm presently has a $56.00 price target on the stock. Zacks Investment Research‘s price target indicates a potential upside of 13.61% from the stock’s previous close.
According to Zacks, “Penske Automotive earnings and revenues beat the Zacks Consensus Estimate in fourth- quarter 2017. Compared with the year-ago figures, both bottom and the top line were higher. In January, the company completed the acquisition of The Car People and is expected to earn annualized revenues of roughly $300 million from its accretion. Earlier in 2017, it acquired two other used vehicle retailers, namely CarShop and CarSense. These buyouts will develop the company’s used car business segment and increase its customer base. Also, to enhance shareholders’ value, the company has been increasing cash dividends in each sequential quarter and frequently engages in share repurchase programs. Also, in the last three months, Penske Automotive’s shares have outperformed the industry it belongs to.”
Other research analysts also recently issued research reports about the company. Bank of America increased their price target on Penske Automotive Group from $58.00 to $60.00 and gave the stock a “buy” rating in a research note on Friday. ValuEngine upgraded Penske Automotive Group from a “hold” rating to a “buy” rating in a research note on Friday, December 1st. Finally, Gabelli increased their price target on Penske Automotive Group from $68.00 to $69.00 and gave the stock a “buy” rating in a research note on Thursday, October 26th. One research analyst has rated the stock with a sell rating, three have assigned a hold rating, five have assigned a buy rating and one has assigned a strong buy rating to the stock. The stock presently has a consensus rating of “Buy” and an average target price of $55.57.
Penske Automotive Group (PAG) traded up $0.85 during mid-day trading on Monday, hitting $49.29. The stock had a trading volume of 171,683 shares, compared to its average volume of 558,367. The company has a debt-to-equity ratio of 0.86, a current ratio of 1.01 and a quick ratio of 0.22. The company has a market cap of $4,190.00, a P/E ratio of 6.90, a price-to-earnings-growth ratio of 1.38 and a beta of 1.45. Penske Automotive Group has a 12 month low of $38.33 and a 12 month high of $54.83.
Penske Automotive Group (NYSE:PAG) last posted its quarterly earnings results on Thursday, February 8th. The company reported $1.01 earnings per share for the quarter, topping the consensus estimate of $1.00 by $0.01. The company had revenue of $5.40 billion during the quarter, compared to the consensus estimate of $5.27 billion. Penske Automotive Group had a return on equity of 17.67% and a net margin of 2.87%. The firm’s quarterly revenue was up 10.4% compared to the same quarter last year. During the same quarter in the prior year, the company earned $0.91 EPS. analysts predict that Penske Automotive Group will post 4.79 EPS for the current fiscal year.
Penske Automotive Group declared that its Board of Directors has approved a stock repurchase program on Wednesday, October 25th that authorizes the company to repurchase $200.00 million in shares. This repurchase authorization authorizes the company to buy shares of its stock through open market purchases. Stock repurchase programs are generally an indication that the company’s leadership believes its shares are undervalued.
Hedge funds and other institutional investors have recently modified their holdings of the business. The Manufacturers Life Insurance Company boosted its stake in Penske Automotive Group by 7.5% in the 2nd quarter. The Manufacturers Life Insurance Company now owns 2,499 shares of the company’s stock worth $110,000 after purchasing an additional 175 shares during the period. State of Alaska Department of Revenue bought a new position in Penske Automotive Group in the 4th quarter worth about $129,000. Commonwealth Equity Services Inc bought a new position in Penske Automotive Group in the 3rd quarter worth about $199,000. Jane Street Group LLC bought a new position in Penske Automotive Group in the 3rd quarter worth about $201,000. Finally, Stephens Inc. AR bought a new position in Penske Automotive Group in the 3rd quarter worth about $230,000. Institutional investors and hedge funds own 41.71% of the company’s stock.
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Penske Automotive Group Company Profile
Penske Automotive Group, Inc is an international transportation services company. The Company operates automotive and commercial truck dealerships principally in the United States, Canada and Western Europe, and distributes commercial vehicles, diesel engines, gas engines, power systems, and related parts and services principally in Australia and New Zealand.
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