Penske Automotive Group, Inc. (NYSE:PAG) Receives Consensus Recommendation of “Moderate Buy” from Brokerages

Penske Automotive Group, Inc. (NYSE:PAG) has been assigned an average rating of “Moderate Buy” from the ten analysts that are currently covering the stock, MarketBeat Ratings reports. Four analysts have rated the stock with a hold recommendation and six have given a buy recommendation to the company. The average 12-month price target among analysts that have issued a report on the stock in the last year is $182.6250.

PAG has been the subject of several research reports. UBS Group initiated coverage on shares of Penske Automotive Group in a research report on Wednesday, May 27th. They set a “neutral” rating and a $167.00 price target for the company. Citigroup upped their price target on shares of Penske Automotive Group from $193.00 to $199.00 and gave the company a “buy” rating in a research report on Wednesday, May 6th. Barclays reduced their price target on shares of Penske Automotive Group from $195.00 to $190.00 and set an “overweight” rating for the company in a research report on Tuesday, April 7th. Morgan Stanley reaffirmed an “overweight” rating and set a $190.00 price target on shares of Penske Automotive Group in a research report on Thursday, May 7th. Finally, JPMorgan Chase & Co. upped their price target on shares of Penske Automotive Group from $165.00 to $170.00 and gave the company a “neutral” rating in a research report on Thursday, May 7th.

Insider Activity

In other news, CFO Michelle Hulgrave sold 1,500 shares of the company’s stock in a transaction dated 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 sale, the chief financial officer owned 17,596 shares of the company’s stock, valued at $3,022,992.80. This represents a 7.86% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, Director Greg C. Smith sold 1,488 shares of the 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. Additional details regarding this sale are available in the official SEC disclosure. 52.90% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Penske Automotive Group

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the company. JPMorgan Chase & Co. boosted its stake in Penske Automotive Group by 21.2% in the 3rd quarter. JPMorgan Chase & Co. now owns 111,775 shares of the company’s stock worth $19,439,000 after purchasing an additional 19,561 shares during the period. Wealth Enhancement Advisory Services LLC boosted its stake in Penske Automotive Group by 394.4% in the 4th quarter. Wealth Enhancement Advisory Services LLC now owns 47,593 shares of the company’s stock worth $7,726,000 after purchasing an additional 37,967 shares during the period. Hamlin Capital Management LLC bought a new position in Penske Automotive Group in the 4th quarter worth approximately $20,203,000. Jefferies Financial Group Inc. bought a new position in Penske Automotive Group in the 4th quarter worth approximately $3,679,000. Finally, Rhumbline Advisers boosted its stake in Penske Automotive Group by 15.7% in the 3rd quarter. Rhumbline Advisers now owns 58,783 shares of the company’s stock worth $10,223,000 after purchasing an additional 7,978 shares during the period. 77.08% of the stock is owned by hedge funds and other institutional investors.

Penske Automotive Group Price Performance

PAG opened at $175.33 on Monday. The company has a debt-to-equity ratio of 0.39, a quick ratio of 0.22 and a current ratio of 0.96. The stock has a market capitalization of $11.53 billion, a P/E ratio of 13.08, a P/E/G ratio of 2.27 and a beta of 0.87. The company’s 50-day simple moving average is $167.28 and its two-hundred day simple moving average is $162.37. Penske Automotive Group has a 52-week low of $140.12 and a 52-week high of $189.51.

Penske Automotive Group (NYSE:PAG) last released its quarterly earnings results on Wednesday, April 29th. The company reported $3.05 EPS for the quarter, beating the consensus estimate of $2.91 by $0.14. Penske Automotive Group had a net margin of 2.85% and a return on equity of 15.13%. The firm had revenue of $7.86 billion during the quarter, compared to analyst estimates of $7.71 billion. During the same quarter in the prior year, the firm earned $3.66 EPS. The business’s revenue for the quarter was down 1.1% compared to the same quarter last year. As a group, analysts predict that Penske Automotive Group will post 13.46 EPS for the current year.

Penske Automotive Group Increases Dividend

The firm also recently declared a quarterly dividend, which was paid on Wednesday, June 3rd. Stockholders of record on Tuesday, May 26th were given a dividend of $1.42 per share. This represents a $5.68 annualized dividend and a dividend yield of 3.2%. The ex-dividend date of this dividend was Tuesday, May 26th. This is an increase from Penske Automotive Group’s previous quarterly dividend of $1.40. Penske Automotive Group’s payout ratio is currently 42.39%.

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.