Penske Automotive Group (NYSE:PAG) Shares Gap Down – What’s Next?

Penske Automotive Group, Inc. (NYSE:PAG) shares gapped down prior to trading on Friday . The stock had previously closed at $163.03, but opened at $159.01. Penske Automotive Group shares last traded at $158.75, with a volume of 1,437 shares traded.

Wall Street Analysts Forecast Growth

Several analysts recently commented on PAG shares. JPMorgan Chase & Co. cut their price objective on shares of Penske Automotive Group from $180.00 to $175.00 and set a “neutral” rating on the stock in a research report on Wednesday, November 5th. Citigroup upped their target price on shares of Penske Automotive Group from $200.00 to $206.00 and gave the stock a “buy” rating in a research note on Thursday, September 25th. Benchmark raised their price target on shares of Penske Automotive Group from $185.00 to $190.00 and gave the company a “buy” rating in a research report on Wednesday, September 17th. Weiss Ratings restated a “buy (b)” rating on shares of Penske Automotive Group in a report on Friday, October 31st. Finally, Bank of America started coverage on Penske Automotive Group in a research note on Tuesday, December 9th. They set a “buy” rating and a $195.00 target price on the stock. Seven investment analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the company’s stock. According to MarketBeat.com, Penske Automotive Group has an average rating of “Moderate Buy” and a consensus price target of $184.43.

Penske Automotive Group Stock Performance

The firm has a market cap of $10.40 billion, a P/E ratio of 11.12, a P/E/G ratio of 2.24 and a beta of 0.92. The company has a debt-to-equity ratio of 0.22, a quick ratio of 0.21 and a current ratio of 0.97. The business’s 50-day simple moving average is $162.26 and its 200 day simple moving average is $171.44.

Penske Automotive Group (NYSE:PAG) last released its quarterly earnings results on Wednesday, October 29th. The company reported $3.23 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $3.48 by ($0.25). The firm had revenue of $7.70 billion during the quarter, compared to analysts’ expectations of $7.71 billion. Penske Automotive Group had a return on equity of 16.84% and a net margin of 3.08%.The business’s quarterly revenue was up 1.4% on a year-over-year basis. During the same quarter last year, the business earned $3.39 earnings per share. As a group, equities analysts predict that Penske Automotive Group, Inc. will post 13.86 earnings per share for the current year.

Penske Automotive Group Increases Dividend

The firm also recently declared a quarterly dividend, which was paid on Tuesday, December 2nd. Stockholders of record on Friday, November 14th were paid a dividend of $1.38 per share. The ex-dividend date was Friday, November 14th. This represents a $5.52 annualized dividend and a dividend yield of 3.5%. This is a boost from Penske Automotive Group’s previous quarterly dividend of $1.32. Penske Automotive Group’s dividend payout ratio is 38.85%.

Insider Activity at Penske Automotive Group

In related news, CFO Michelle Hulgrave sold 2,100 shares of the firm’s stock in a transaction on Monday, November 24th. The stock was sold at an average price of $160.17, for a total value of $336,357.00. Following the transaction, the chief financial officer directly owned 16,822 shares of the company’s stock, valued at approximately $2,694,379.74. This trade represents a 11.10% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. 51.70% of the stock is owned by company insiders.

Institutional Trading of Penske Automotive Group

A number of hedge funds and other institutional investors have recently bought and sold shares of the stock. Public Employees Retirement System of Ohio grew its stake in shares of Penske Automotive Group by 1.1% during the 2nd quarter. Public Employees Retirement System of Ohio now owns 5,740 shares of the company’s stock valued at $986,000 after acquiring an additional 60 shares during the period. UMB Bank n.a. boosted its position in shares of Penske Automotive Group by 18.6% in the second quarter. UMB Bank n.a. now owns 402 shares of the company’s stock worth $69,000 after purchasing an additional 63 shares during the period. Voya Investment Management LLC boosted its position in shares of Penske Automotive Group by 2.9% in the first quarter. Voya Investment Management LLC now owns 2,306 shares of the company’s stock worth $332,000 after purchasing an additional 65 shares during the period. PNC Financial Services Group Inc. increased its stake in shares of Penske Automotive Group by 2.1% in the third quarter. PNC Financial Services Group Inc. now owns 3,226 shares of the company’s stock worth $561,000 after purchasing an additional 65 shares in the last quarter. Finally, Aptus Capital Advisors LLC raised its position in shares of Penske Automotive Group by 5.4% during the 3rd quarter. Aptus Capital Advisors LLC now owns 1,261 shares of the company’s stock valued at $219,000 after purchasing an additional 65 shares during the period. Hedge funds and other institutional investors own 77.08% of the company’s stock.

Penske Automotive Group Company Profile

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.