Penske Automotive Group (NYSE:PAG) Releases Quarterly Earnings Results

Penske Automotive Group (NYSE:PAG) posted its earnings results on Wednesday. The company reported $3.05 EPS for the quarter, topping the consensus estimate of $2.91 by $0.14, Zacks reports. Penske Automotive Group had a net margin of 2.91% and a return on equity of 15.77%. The firm had revenue of $7.86 billion for the quarter, compared to analysts’ expectations of $7.80 billion. During the same quarter last year, the firm earned $3.66 EPS. The company’s quarterly revenue was down 1.1% compared to the same quarter last year.

Here are the key takeaways from Penske Automotive Group’s conference call:

• Reported Q1 $7.9 billion revenue, GAAP net income of $235 million and EPS of $3.56 (adjusted EPS $3.05 after a $60M dealership gain and $13M disposal charges); management flagged difficult year‑over‑year comps and market headwinds.
• Service & parts delivered a Q1 record with same‑store revenue +4.6%, gross profit +5.7% and a 60bp gross margin improvement, strengthening recurring earnings.
• Expanded premium footprint with two Lexus acquisitions (plus prior Toyota/Lexus deals) expected to add ~$2 billion of annualized revenue, while returning capital via a $26M buyback and raising the dividend to $1.40 (21st consecutive increase).
• Penske Transportation Solutions equity income rose 24% as fleet right‑sizing, higher utilization and lower maintenance/interest costs offset a $26M decline in gain‑on‑sale; management highlighted a surge in demand with Class‑8 orders +91% and industry backlog +33%, which should boost H2 truck deliveries.
• International revenue +6% with Australia EBT +15%; the energy/off‑highway business has >AUD 600 million secured orders for 2026 and management believes the energy solutions segment can reach at least AUD 1 billion by 2030.

Penske Automotive Group Stock Performance

Penske Automotive Group stock traded up $1.92 during mid-day trading on Thursday, reaching $173.58. The company’s stock had a trading volume of 189,045 shares, compared to its average volume of 293,618. Penske Automotive Group has a 12-month low of $140.12 and a 12-month high of $189.51. The company has a market capitalization of $11.41 billion, a P/E ratio of 12.84, a PEG ratio of 2.10 and a beta of 0.87. The company has a debt-to-equity ratio of 0.32, a quick ratio of 0.22 and a current ratio of 0.99. The firm’s fifty day moving average price is $154.36 and its two-hundred day moving average price is $160.36.

Penske Automotive Group Increases Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Thursday, March 5th. Investors of record on Wednesday, February 25th were paid a $1.40 dividend. The ex-dividend date was Wednesday, February 25th. This represents a $5.60 dividend on an annualized basis and a yield of 3.2%. This is a positive change from Penske Automotive Group’s previous quarterly dividend of $1.38. Penske Automotive Group’s dividend payout ratio (DPR) is presently 41.48%.

Analyst Ratings Changes

PAG has been the topic of several recent analyst reports. Barclays dropped their target price on shares of Penske Automotive Group from $195.00 to $190.00 and set an “overweight” rating on the stock in a research report on Tuesday, April 7th. JPMorgan Chase & Co. dropped their target price on shares of Penske Automotive Group from $170.00 to $165.00 and set a “neutral” rating on the stock in a research report on Friday, April 17th. Citigroup dropped their target price on shares of Penske Automotive Group from $200.00 to $193.00 and set a “buy” rating on the stock in a research report on Wednesday, April 8th. Finally, Weiss Ratings cut shares of Penske Automotive Group from a “buy (b-)” rating to a “hold (c+)” rating in a research report on Monday, March 16th. Six analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the stock. According to MarketBeat.com, Penske Automotive Group has an average rating of “Moderate Buy” and a consensus target price of $180.43.

Institutional Inflows and Outflows

Hedge funds have recently bought and sold shares of the business. Acadian Asset Management LLC purchased a new position in Penske Automotive Group in the 1st quarter valued at approximately $42,000. Global Retirement Partners LLC grew its stake in Penske Automotive Group by 186.6% in the 4th quarter. Global Retirement Partners LLC now owns 321 shares of the company’s stock valued at $51,000 after buying an additional 209 shares in the last quarter. State of Wyoming purchased a new position in Penske Automotive Group in the 4th quarter valued at approximately $67,000. UMB Bank n.a. grew its stake in Penske Automotive Group by 20.8% in the 4th quarter. UMB Bank n.a. now owns 488 shares of the company’s stock valued at $77,000 after buying an additional 84 shares in the last quarter. Finally, EverSource Wealth Advisors LLC grew its stake in Penske Automotive Group by 506.9% in the 2nd quarter. EverSource Wealth Advisors LLC now owns 880 shares of the company’s stock valued at $151,000 after buying an additional 735 shares in the last quarter. 77.08% of the stock is currently owned by hedge funds and other institutional investors.

Penske Automotive Group News Summary

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

• Positive Sentiment: Q1 adjusted EPS beat Street estimates, helping investor sentiment; multiple outlets note the company topped consensus despite year-over-year declines. Read More.
• Positive Sentiment: Retail service & parts showed strength (record service & parts revenue; same-store service & parts up ~4.6%), which supported margins and offset weakness in vehicle retail volumes. Read More.
• Positive Sentiment: Management completed acquisitions (about $450M estimated annualized revenue) and continued share repurchases, actions investors view as growth and capital return initiatives. Read More.
• Neutral Sentiment: Revenue was roughly flat to down (~1.1% year-over-year) and one report notes a small miss vs. some consensus figures, so topline strength is mixed. Read More.
• Neutral Sentiment: Analysts and writeups highlight that EPS is down versus the prior year (decline in quarterly EPS y/y), so the beat is more a function of expectations than accelerating profit growth. Read More.
• Neutral Sentiment: Some analysts emphasize that the company’s fundamentals and valuation remain reasonable, pointing to steady ROE and margin improvement in parts/service as supportive for the stock longer term. Read More.
• Negative Sentiment: At least one analyst note flags caution, recommending a downgrade/hold despite the beat — risks cited include softer vehicle retail trends, margin pressure, and the need to assimilate acquisitions. Read More.

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.