Penske Automotive Group (NYSE:PAG) Announces Quarterly Earnings Results, Beats Expectations By $0.20 EPS

Penske Automotive Group (NYSE:PAG) announced its quarterly earnings results on Wednesday. The company reported $3.62 earnings per share for the quarter, beating analysts’ consensus estimates of $3.42 by $0.20, Zacks reports. Penske Automotive Group had a net margin of 2.85% and a return on equity of 15.13%. The firm had revenue of $8.51 billion during the quarter, compared to analysts’ expectations of $7.98 billion. During the same period in the previous year, the company earned $3.78 earnings per share. Penske Automotive Group’s quarterly revenue was up 11.1% compared to the same quarter last year.

Here are the key takeaways from Penske Automotive Group’s conference call:

• Penske Corporation and Mitsui proposed acquiring the remaining PAG shares for $210 per share. An independent special committee has been formed to evaluate the unsolicited, non-binding offer, and management declined to take questions on the matter.
• PAG reported a strong second quarter, with revenue up 6% to $8.5 billion and adjusted EPS of $3.62 excluding a roughly $30 million dealership-sale gain. Cash generation supported a $141 million debt reduction and the 23rd consecutive quarterly dividend increase to $1.44 per share.
• The commercial truck recovery is gaining momentum: North American Class 8 orders rose 170% year over year, while Premier Truck Group’s backlog reached approximately 10,400 units. Management expects most of the backlog to convert into retail sales in the second half of 2026, with stronger used-truck demand and pricing also benefiting the business.
• Australia’s commercial vehicle and power systems operations posted significant growth, including a 63% increase in off-highway revenue and nearly $660 million of secured 2026 orders. Management sees a path toward AUD 1 billion in data-center revenue by 2030 and expects recurring maintenance and remanufacturing revenue from prime-power deployments.
• The U.K. automotive market remains challenging because of higher taxes, affordability pressures, reduced Motability programs, and increasingly stringent electrification mandates. PAG also experienced higher personnel, technology, rent, and maintenance costs, leaving SG&A at 71.8% of gross profit despite a 250-basis-point sequential improvement.

Penske Automotive Group Price Performance

Penske Automotive Group stock traded down $3.86 during mid-day trading on Thursday, reaching $219.58. The company had a trading volume of 86,902 shares, compared to its average volume of 321,298. The company has a market capitalization of $14.44 billion, a P/E ratio of 16.37, a P/E/G ratio of 2.85 and a beta of 0.87. The company has a debt-to-equity ratio of 0.39, a current ratio of 0.96 and a quick ratio of 0.22. The stock’s 50-day simple moving average is $184.41 and its 200-day simple moving average is $168.13. Penske Automotive Group has a 1 year low of $140.12 and a 1 year high of $227.00.

Penske Automotive Group Increases Dividend

The business 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 dividend of $1.44 per share. The ex-dividend date is Friday, August 14th. This is an increase from Penske Automotive Group’s previous quarterly dividend of $1.42. This represents a $5.76 annualized dividend and a yield of 2.6%. Penske Automotive Group’s dividend payout ratio (DPR) is currently 42.39%.

Analyst Ratings Changes

PAG has been the subject of a number of research analyst reports. Citigroup cut Penske Automotive Group from a “buy” rating to a “neutral” rating and upped their target price for the company from $199.00 to $210.00 in a research report on Thursday, July 23rd. Barclays increased their target price on shares of Penske Automotive Group from $190.00 to $220.00 and gave the stock an “overweight” rating in a research note on Wednesday, July 15th. Weiss Ratings raised Penske Automotive Group from a “hold (c+)” rating to a “buy (b-)” rating in a research note on Friday, July 10th. Morgan Stanley reaffirmed an “overweight” rating and set a $190.00 price target on shares of Penske Automotive Group in a report on Thursday, May 7th. Finally, Benchmark lowered shares of Penske Automotive Group from a “buy” rating to a “hold” rating in a research report on Wednesday, July 22nd. Five analysts have rated the stock with a Buy rating and five have given a Hold rating to the stock. According to data from MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and a consensus price target of $196.00.

Insider Buying and Selling at Penske Automotive Group

In other Penske Automotive Group news, CFO Michelle Hulgrave sold 1,500 shares of the business’s stock in a transaction on Tuesday, June 2nd. The stock was sold at an average price of $171.80, for a total transaction of $257,700.00. Following the sale, the chief financial officer directly owned 17,596 shares in the company, valued at approximately $3,022,992.80. The trade was a 7.86% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, Director Greg C. Smith sold 1,488 shares of Penske Automotive Group stock in a transaction on Monday, May 18th. The stock was sold at an average price of $160.02, for a total value of $238,109.76. Additional details regarding this sale are available in the official SEC disclosure. Insiders own 52.90% of the company’s stock.

Institutional Trading of Penske Automotive Group

Hedge funds have recently made changes to their positions in the stock. Acadian Asset Management LLC acquired a new position in Penske Automotive Group during the 1st quarter worth $42,000. Global Retirement Partners LLC raised its stake in Penske Automotive Group by 186.6% during the fourth quarter. Global Retirement Partners LLC now owns 321 shares of the company’s stock valued at $51,000 after buying an additional 209 shares in the last quarter. State of Wyoming bought a new position in Penske Automotive Group during the 4th quarter worth approximately $67,000. UMB Bank n.a. grew its position in shares of Penske Automotive Group by 20.8% in the 4th quarter. UMB Bank n.a. now owns 488 shares of the company’s stock worth $77,000 after acquiring an additional 84 shares in the last quarter. Finally, EverSource Wealth Advisors LLC boosted its position in Penske Automotive Group by 506.9% during the 2nd quarter. EverSource Wealth Advisors LLC now owns 880 shares of the company’s stock valued at $151,000 after purchasing an additional 735 shares during the period. Institutional investors and hedge funds own 77.08% of the company’s stock.

Penske Automotive Group Company Profile

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.