Penske Automotive Group (NYSE:PAG) Sets New 12-Month High – Still a Buy?

Penske Automotive Group, Inc. (NYSE:PAG)’s share price reached a new 52-week high during mid-day trading on Tuesday . The company traded as high as $219.59 and last traded at $215.8480, with a volume of 499287 shares changing hands. The stock had previously closed at $217.35.

Wall Street Analyst Weigh In

Several equities research analysts have commented on the stock. JPMorgan Chase & Co. raised 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 note on Thursday, May 7th. UBS Group set a $190.00 price objective on Penske Automotive Group in a research report on Friday, July 10th. Weiss Ratings raised Penske Automotive Group from a “hold (c+)” rating to a “buy (b-)” rating in a report on Friday, July 10th. Citigroup downgraded Penske Automotive Group from a “buy” rating to a “neutral” rating and lifted their target price for the company from $199.00 to $210.00 in a research note on Thursday, July 23rd. Finally, Barclays boosted their price target on Penske Automotive Group from $190.00 to $220.00 and gave the stock an “overweight” rating in a research report on Wednesday, July 15th. Five analysts have rated the stock with a Buy rating and five have issued a Hold rating to the company’s stock. According to MarketBeat, Penske Automotive Group currently has an average rating of “Moderate Buy” and a consensus target price of $196.00.

Penske Automotive Group Price Performance

The company has a market capitalization of $14.65 billion, a P/E ratio of 16.62, a P/E/G ratio of 2.85 and a beta of 0.87. The business’s 50-day simple moving average is $184.41 and its 200 day simple moving average is $168.13. 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 (NYSE:PAG) last posted its quarterly earnings data on Wednesday, July 29th. The company reported $3.62 earnings per share (EPS) for the quarter, beating the consensus estimate of $3.42 by $0.20. Penske Automotive Group had a net margin of 2.85% and a return on equity of 15.13%. The business had revenue of $8.51 billion during the quarter, compared to analysts’ expectations of $7.98 billion. During the same period last year, the firm posted $3.78 earnings per share. The business’s revenue was up 11.1% on a year-over-year basis. As a group, sell-side analysts anticipate that Penske Automotive Group, Inc. will post 13.45 EPS for the current year.

Penske Automotive Group Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Tuesday, September 1st. Shareholders of record on Friday, August 14th will be given a $1.44 dividend. This represents a $5.76 dividend on an annualized basis and a yield of 2.6%. This is a positive change from Penske Automotive Group’s previous quarterly dividend of $1.42. The ex-dividend date is Friday, August 14th. Penske Automotive Group’s payout ratio is currently 42.39%.

Insiders Place Their Bets

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

Institutional Investors Weigh In On Penske Automotive Group

Several hedge funds and other institutional investors have recently bought and sold shares of the business. Navalign LLC bought a new position in shares of Penske Automotive Group during the 4th quarter valued at about $26,000. International Assets Investment Management LLC acquired a new position in shares of Penske Automotive Group in the 4th quarter worth approximately $30,000. Rothschild Investment LLC raised its holdings in shares of Penske Automotive Group by 37.5% in the 4th quarter. Rothschild Investment LLC now owns 242 shares of the company’s stock worth $38,000 after purchasing an additional 66 shares in the last quarter. Acadian Asset Management LLC bought a new stake in shares of Penske Automotive Group in the 1st quarter worth approximately $42,000. Finally, Versant Capital Management Inc lifted its stake in Penske Automotive Group by 179.0% during the second quarter. Versant Capital Management Inc now owns 279 shares of the company’s stock valued at $50,000 after purchasing an additional 179 shares during the last quarter. 77.08% of the stock is currently owned by institutional investors.

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.