Analysts Set Penske Automotive Group, Inc. (NYSE:PAG) Price Target at $165.00

Penske Automotive Group, Inc. (NYSE:PAG) has earned a consensus recommendation of “Moderate Buy” from the six brokerages that are presently covering the firm, Marketbeat reports. One investment analyst has rated the stock with a sell rating, one has given a hold rating and four have issued a buy rating on the company. The average 12-month price objective among brokerages that have issued ratings on the stock in the last year is $165.00.

A number of equities research analysts have commented on PAG shares. JPMorgan Chase & Co. reduced their target price on Penske Automotive Group from $165.00 to $140.00 and set an “underweight” rating for the company in a report on Thursday, March 27th. StockNews.com upgraded shares of Penske Automotive Group from a “hold” rating to a “buy” rating in a report on Wednesday, April 23rd. Stephens restated an “equal weight” rating and set a $140.00 target price on shares of Penske Automotive Group in a report on Monday, May 5th. Finally, Citigroup initiated coverage on shares of Penske Automotive Group in a research note on Wednesday, April 23rd. They set a “buy” rating and a $185.00 price objective for the company.

Insider Buying and Selling

In other Penske Automotive Group news, Director John Barr sold 1,529 shares of Penske Automotive Group stock in a transaction that occurred on Thursday, March 13th. The stock was sold at an average price of $155.45, for a total transaction of $237,683.05. The transaction was disclosed in a filing with the SEC, which is available through this link. Corporate insiders own 51.70% of the company’s stock.

Institutional Investors Weigh In On Penske Automotive Group

A number of institutional investors have recently modified their holdings of PAG. GAMMA Investing LLC grew its holdings in shares of Penske Automotive Group by 44.8% during the fourth quarter. GAMMA Investing LLC now owns 262 shares of the company’s stock valued at $40,000 after purchasing an additional 81 shares during the last quarter. Whittier Trust Co. of Nevada Inc. bought a new position in Penske Automotive Group in the 4th quarter worth about $40,000. 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 valued at $49,000 after purchasing an additional 274 shares during the period. Brooklyn Investment Group lifted its holdings in Penske Automotive Group by 353.0% in the first quarter. Brooklyn Investment Group now owns 453 shares of the company’s stock worth $65,000 after purchasing an additional 353 shares during the period. Finally, Headlands Technologies LLC acquired a new stake in Penske Automotive Group in the fourth quarter worth approximately $76,000. Institutional investors and hedge funds own 77.08% of the company’s stock.

Penske Automotive Group Price Performance

Penske Automotive Group stock opened at $165.76 on Friday. Penske Automotive Group has a 12 month low of $134.05 and a 12 month high of $180.12. The company has a debt-to-equity ratio of 0.22, a current ratio of 0.91 and a quick ratio of 0.20. The business has a 50 day simple moving average of $152.35 and a 200-day simple moving average of $158.54. The stock has a market capitalization of $10.97 billion, a PE ratio of 12.06 and a beta of 0.90.

Penske Automotive Group (NYSE:PAG) last announced its quarterly earnings data on Wednesday, April 30th. The company reported $3.39 earnings per share for the quarter, beating analysts’ consensus estimates of $3.27 by $0.12. The company had revenue of $7.60 billion for the quarter, compared to analyst estimates of $7.68 billion. Penske Automotive Group had a return on equity of 18.05% and a net margin of 3.02%. The firm’s revenue for the quarter was up 2.1% compared to the same quarter last year. During the same quarter in the previous year, the company earned $3.21 EPS. Equities analysts predict that Penske Automotive Group will post 13.86 earnings per share for the current year.

Penske Automotive Group declared that its board has authorized a stock buyback program 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 stock through open market purchases. Stock buyback programs are usually a sign that the company’s management believes its stock is undervalued.

Penske Automotive Group Increases Dividend

The company also recently declared a quarterly dividend, which will be paid on Tuesday, June 3rd. Stockholders of record on Tuesday, May 27th will be issued a dividend of $1.26 per share. The ex-dividend date is Tuesday, May 27th. This is an increase from Penske Automotive Group’s previous quarterly dividend of $1.22. This represents a $5.04 dividend on an annualized basis and a dividend yield of 3.04%. Penske Automotive Group’s payout ratio is 34.37%.

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.