Penske Automotive Group (NYSE:PAG) Reaches New 1-Year Low – What’s Next?

Penske Automotive Group, Inc. (NYSE:PAG)’s share price reached a new 52-week low on Thursday . The company traded as low as $138.91 and last traded at $141.49, with a volume of 198860 shares. The stock had previously closed at $149.50.

Analyst Ratings Changes

PAG has been the subject of several analyst reports. JPMorgan Chase & Co. cut their price target on shares of Penske Automotive Group from $165.00 to $140.00 and set an “underweight” rating for the company in a report on Thursday, March 27th. Benchmark began coverage on Penske Automotive Group in a research report on Thursday, December 12th. They set a “buy” rating for the company. Stephens restated an “equal weight” rating and issued a $165.00 target price on shares of Penske Automotive Group in a research note on Tuesday, February 18th. Finally, StockNews.com upgraded Penske Automotive Group from a “hold” rating to a “buy” rating in a research report on Monday, February 24th. One analyst has rated the stock with a sell rating, one has issued a hold rating and four have given a buy rating to the company’s stock. According to MarketBeat.com, Penske Automotive Group currently has a consensus rating of “Moderate Buy” and an average price target of $166.25.

Penske Automotive Group Price Performance

The stock has a market capitalization of $9.43 billion, a P/E ratio of 10.27 and a beta of 1.24. The company has a debt-to-equity ratio of 0.22, a quick ratio of 0.20 and a current ratio of 0.91. The firm has a 50-day moving average price of $160.86 and a 200 day moving average price of $159.21.

Penske Automotive Group (NYSE:PAG) last released its earnings results on Thursday, February 13th. The company reported $3.54 earnings per share for the quarter, beating analysts’ consensus estimates of $3.37 by $0.17. Penske Automotive Group had a return on equity of 18.05% and a net margin of 3.02%. The company had revenue of $7.72 billion during the quarter, compared to analyst estimates of $7.56 billion. On average, analysts expect that Penske Automotive Group, Inc. will post 13.86 EPS for the current year.

Penske Automotive Group Increases Dividend

The company also recently declared a quarterly dividend, which was paid on Thursday, March 6th. Investors of record on Monday, February 24th were issued a dividend of $1.22 per share. This is a positive change from Penske Automotive Group’s previous quarterly dividend of $1.19. This represents a $4.88 dividend on an annualized basis and a yield of 3.46%. The ex-dividend date was Monday, February 24th. Penske Automotive Group’s dividend payout ratio is currently 35.49%.

Insiders Place Their Bets

In other news, EVP Claude H. Denker III sold 8,746 shares of Penske Automotive Group stock in a transaction that occurred on Friday, February 14th. The stock was sold at an average price of $173.03, for a total value of $1,513,320.38. Following the sale, the executive vice president now directly owns 28,917 shares in the company, valued at approximately $5,003,508.51. This trade represents a 23.22 % decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, Director John Barr sold 1,529 shares of the company’s stock in a transaction that occurred on Thursday, March 13th. The shares were sold at an average price of $155.45, for a total value of $237,683.05. The disclosure for this sale can be found here. Insiders own 52.40% of the company’s stock.

Institutional Investors Weigh In On Penske Automotive Group

Several institutional investors and hedge funds have recently modified their holdings of PAG. The Manufacturers Life Insurance Company lifted its holdings in Penske Automotive Group by 62.8% in the third quarter. The Manufacturers Life Insurance Company now owns 29,199 shares of the company’s stock worth $4,743,000 after buying an additional 11,267 shares during the period. Zurcher Kantonalbank Zurich Cantonalbank boosted its position in shares of Penske Automotive Group by 4.4% during the third quarter. Zurcher Kantonalbank Zurich Cantonalbank now owns 4,665 shares of the company’s stock valued at $758,000 after purchasing an additional 196 shares in the last quarter. Captrust Financial Advisors bought a new stake in shares of Penske Automotive Group during the third quarter valued at approximately $524,000. Point72 Asia Singapore Pte. Ltd. purchased a new stake in Penske Automotive Group in the third quarter worth $332,000. Finally, Janus Henderson Group PLC raised its holdings in Penske Automotive Group by 36.9% in the third quarter. Janus Henderson Group PLC now owns 39,569 shares of the company’s stock worth $6,426,000 after purchasing an additional 10,663 shares in the last quarter. 77.08% of the stock is owned by hedge funds and other institutional investors.

Penske Automotive Group Company Profile

Penske Automotive Group, Inc, a diversified transportation services company, operates automotive and commercial truck dealerships worldwide. The company operates through four segments: Retail Automotive, Retail Commercial Truck, Other, and Non-Automotive Investments. It operates dealerships under franchise agreements with various automotive manufacturers and distributors.