Insider Selling: Penske Automotive Group (NYSE:PAG) Director Sells 1,604 Shares of Stock

Penske Automotive Group, Inc. (NYSE:PAG) Director Lisa Ann Davis sold 1,604 shares of the company’s stock in a transaction dated Monday, August 18th. The shares were sold at an average price of $180.74, for a total transaction of $289,906.96. Following the completion of the transaction, the director owned 1,529 shares in the company, valued at $276,351.46. This trade represents a 51.20% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through this hyperlink.

Penske Automotive Group Trading Up 3.4%

PAG stock opened at $187.1050 on Friday. 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 company’s 50-day simple moving average is $175.89 and its 200 day simple moving average is $164.81. Penske Automotive Group, Inc. has a 52 week low of $134.05 and a 52 week high of $188.43. The company has a market capitalization of $12.36 billion, a PE ratio of 13.02 and a beta of 0.87.

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

Penske Automotive Group Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Wednesday, September 3rd. Shareholders of record on Friday, August 15th will be paid a dividend of $1.32 per share. The ex-dividend date is Friday, August 15th. 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 yield of 2.8%. Penske Automotive Group’s dividend payout ratio is currently 36.74%.

Penske Automotive Group announced that its Board of Directors has initiated a share repurchase program on Wednesday, May 14th that permits the company to buyback $250.00 million in outstanding shares. This buyback authorization permits the company to purchase up to 2.3% of its stock through open market purchases. Stock buyback programs are typically a sign that the company’s leadership believes its stock is undervalued.

Analyst Upgrades and Downgrades

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

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently made changes to their positions in PAG. Sound Income Strategies LLC bought a new position in shares of Penske Automotive Group in the second quarter worth about $34,000. Acadian Asset Management LLC bought a new position in shares of Penske Automotive Group in the first quarter worth about $42,000. UMB Bank n.a. lifted its holdings 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 lifted its holdings in shares of Penske Automotive Group by 51.9% in the first quarter. GAMMA Investing LLC now owns 398 shares of the company’s stock worth $57,000 after acquiring an additional 136 shares during the last quarter. Finally, Brooklyn Investment Group raised its holdings in Penske Automotive Group by 353.0% in the 1st quarter. Brooklyn Investment Group now owns 453 shares of the company’s stock valued at $65,000 after buying an additional 353 shares during the last quarter. Institutional investors 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.