Penske Automotive Group (NYSE:PAG) Reaches New 52-Week High – Here’s Why

Penske Automotive Group, Inc. (NYSE:PAG)’s stock price hit a new 52-week high during trading on Friday . The stock traded as high as $186.97 and last traded at $188.31, with a volume of 41483 shares. The stock had previously closed at $180.99.

Wall Street Analysts Forecast Growth

PAG has been the topic of a number of research reports. Morgan Stanley boosted their price objective on Penske Automotive Group from $180.00 to $190.00 and gave the stock an “overweight” rating in a research note on Thursday, August 14th. JPMorgan Chase & Co. upgraded shares of Penske Automotive Group from an “underweight” rating to a “neutral” rating and boosted their price target for the stock from $155.00 to $175.00 in a research report on Tuesday, August 5th. Citigroup upped their price target on shares of Penske Automotive Group from $185.00 to $195.00 and gave the company a “buy” rating in a report on Monday, May 19th. Stephens reaffirmed an “equal weight” rating and issued a $140.00 price objective on shares of Penske Automotive Group in a research note on Wednesday, June 11th. Finally, Bank of America boosted their target price on shares of Penske Automotive Group from $190.00 to $205.00 and gave the stock a “buy” rating in a report on Monday, June 16th. Four investment analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the company. According to data from MarketBeat.com, Penske Automotive Group currently has a consensus rating of “Moderate Buy” and an average price target of $181.00.

Penske Automotive Group Price Performance

The stock has a 50 day moving average of $175.89 and a two-hundred day moving average of $164.78. The company has a debt-to-equity ratio of 0.16, a quick ratio of 0.21 and a current ratio of 0.90. The stock has a market cap of $12.36 billion, a PE ratio of 13.02 and a beta of 0.87.

Penske Automotive Group (NYSE:PAG) last announced its earnings results on Wednesday, July 30th. The company reported $3.78 EPS for the quarter, topping the consensus estimate of $3.56 by $0.22. The company had revenue of $7.66 billion during the quarter, compared to analysts’ expectations of $7.98 billion. Penske Automotive Group had a net margin of 3.13% and a return on equity of 17.43%. The business’s revenue for the quarter was down .4% on a year-over-year basis. During the same period last year, the company posted $3.61 earnings per share. Equities analysts anticipate that Penske Automotive Group, Inc. will post 13.86 EPS for the current year.

Penske Automotive Group Increases Dividend

The firm also recently declared a quarterly dividend, which will be paid on Wednesday, September 3rd. Stockholders of record on Friday, August 15th will be issued a dividend of $1.32 per share. This is a positive change from Penske Automotive Group’s previous quarterly dividend of $1.26. This represents a $5.28 dividend on an annualized basis and a dividend yield of 2.8%. The ex-dividend date is Friday, August 15th. Penske Automotive Group’s dividend payout ratio is presently 36.74%.

Penske Automotive Group declared that its board has authorized a stock repurchase plan on Wednesday, May 14th that allows the company to buyback $250.00 million in outstanding shares. This buyback authorization allows the company to purchase up to 2.3% of its shares through open market purchases. Shares buyback plans are typically a sign that the company’s management believes its shares are undervalued.

Insider Transactions at Penske Automotive Group

In other news, CEO Roger S. Penske sold 77,357 shares of the company’s stock in a transaction dated Tuesday, June 3rd. The stock was sold at an average price of $161.37, for a total value of $12,483,099.09. Following the transaction, the chief executive officer owned 140,042 shares in the company, valued at $22,598,577.54. This represents a 35.58% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, EVP Shane M. Spradlin sold 3,158 shares of the stock in a transaction that occurred on Monday, June 9th. The stock was sold at an average price of $167.10, for a total transaction of $527,701.80. Following the completion of the sale, the executive vice president directly owned 36,152 shares of the company’s stock, valued at $6,040,999.20. This trade represents a 8.03% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last 90 days, insiders sold 84,748 shares of company stock worth $13,748,660. 51.70% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Several large investors have recently added to or reduced their stakes in the stock. Sound Income Strategies LLC purchased a new stake in Penske Automotive Group in the 2nd quarter worth approximately $34,000. Acadian Asset Management LLC purchased a new position in shares of Penske Automotive Group during the 1st quarter valued at $42,000. UMB Bank n.a. increased its stake in shares of Penske Automotive Group by 421.5% in the first quarter. UMB Bank n.a. now owns 339 shares of the company’s stock worth $49,000 after acquiring an additional 274 shares during the last quarter. GAMMA Investing LLC raised its holdings in shares of Penske Automotive Group by 51.9% during the first quarter. GAMMA Investing LLC now owns 398 shares of the company’s stock worth $57,000 after acquiring an additional 136 shares in the last quarter. Finally, Brooklyn Investment Group boosted its position in Penske Automotive Group by 353.0% during the first quarter. Brooklyn Investment Group now owns 453 shares of the company’s stock valued at $65,000 after purchasing an additional 353 shares during the last quarter. Institutional investors and hedge funds own 77.08% of the company’s stock.

About Penske Automotive Group

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.