Penske Automotive Group (NYSE:PAG) Trading 6% Higher – Here’s Why

Penske Automotive Group, Inc. (NYSE:PAG) shares shot up 6% during mid-day trading on Wednesday . The company traded as high as $175.02 and last traded at $174.31. 61,029 shares traded hands during mid-day trading, a decline of 75% from the average session volume of 247,601 shares. The stock had previously closed at $164.40.

Key Headlines Impacting Penske Automotive Group

Here are the key news stories impacting Penske Automotive Group this week:

• Positive Sentiment: Board raised the quarterly cash dividend to $1.40 per share and continued buybacks (1,178,411 shares repurchased in 2025, ~1.8% of shares outstanding) — supports shareholder returns and helps explain investor buying interest. PENSKE AUTOMOTIVE GROUP REPORTS FOURTH QUARTER AND FULL YEAR 2025 RESULTS
• Positive Sentiment: Operational positives: record Q4 and full-year retail automotive service & parts revenue, same-store service & parts revenue up ~5%, and continued strength in per-unit gross for new, used and F&I — points to resilience in higher-margin parts & service. PENSKE AUTOMOTIVE GROUP REPORTS FOURTH QUARTER AND FULL YEAR 2025 RESULTS
• Neutral Sentiment: Top-line vs. expectations: revenue of $7.77B slightly topped consensus (~$7.62B) but was down ~3.8% year-over-year — mixed signal for growth but confirms scale of operations. View Press Release / Slide Deck
• Neutral Sentiment: Analyst positioning: consensus remains constructive (consensus rating around “Moderate Buy”) — suggests many analysts view dividend/buybacks and parts/service strength as offsetting near-term earnings softness. Penske Automotive Group Receives Consensus Rating
• Negative Sentiment: Earnings miss: Q4 EPS of $2.91 missed consensus (Zacks ~$3.19; broader consensus ~$3.30) and declined from $3.54 a year ago — the EPS shortfall is a key reason for near-term investor caution. Penske Automotive (PAG) Misses Q4 Earnings Estimates
• Negative Sentiment: Profitability pressure: net margin (~3.1%) and year-over-year EPS decline highlight margin compression vs. prior year — a risk to near-term earnings visibility. Penske (PAG) Reports Q4 Earnings: What Key Metrics Have to Say

Analyst Ratings Changes

Several brokerages have weighed in on PAG. Deutsche Bank Aktiengesellschaft restated a “buy” rating on shares of Penske Automotive Group in a research report on Monday, December 8th. Bank of America assumed coverage on Penske Automotive Group in a report on Tuesday, December 9th. They issued a “buy” rating and a $195.00 price target on the stock. JPMorgan Chase & Co. reduced their price objective on Penske Automotive Group from $180.00 to $175.00 and set a “neutral” rating for the company in a report on Wednesday, November 5th. Barclays decreased their target price on Penske Automotive Group from $195.00 to $190.00 and set an “overweight” rating on the stock in a research report on Wednesday, January 21st. Finally, Weiss Ratings restated a “buy (b)” rating on shares of Penske Automotive Group in a research report on Friday, October 31st. Seven investment analysts have rated the stock with a Buy rating and two have given a Hold rating to the stock. Based on data from MarketBeat.com, Penske Automotive Group presently has a consensus rating of “Moderate Buy” and an average target price of $183.71.

Penske Automotive Group Stock Performance

The company has a quick ratio of 0.21, a current ratio of 0.97 and a debt-to-equity ratio of 0.22. The stock has a fifty day moving average price of $163.65 and a two-hundred day moving average price of $168.83. The company has a market capitalization of $11.43 billion, a price-to-earnings ratio of 12.21, a PEG ratio of 2.29 and a beta of 0.92.

Penske Automotive Group (NYSE:PAG) last posted its quarterly earnings data on Wednesday, February 11th. The company reported $2.91 EPS for the quarter, missing analysts’ consensus estimates of $3.30 by ($0.39). Penske Automotive Group had a net margin of 3.08% and a return on equity of 16.84%. The company had revenue of $7.77 billion for the quarter, compared to analyst estimates of $7.62 billion. During the same period in the previous year, the business earned $3.54 EPS. The firm’s revenue was down 3.8% on a year-over-year basis. As a group, analysts forecast that Penske Automotive Group, Inc. will post 13.86 EPS for the current fiscal year.

Insider Activity at Penske Automotive Group

In other news, CFO Michelle Hulgrave sold 2,100 shares of the business’s stock in a transaction that occurred on Monday, November 24th. The shares were sold at an average price of $160.17, for a total value of $336,357.00. Following the completion of the transaction, the chief financial officer owned 16,822 shares of the company’s stock, valued at $2,694,379.74. The trade was a 11.10% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at the SEC website. 52.40% of the stock is currently owned by company insiders.

Institutional Trading of Penske Automotive Group

Several hedge funds and other institutional investors have recently bought and sold shares of PAG. Syon Capital LLC raised its holdings in Penske Automotive Group by 26.9% in the 4th quarter. Syon Capital LLC now owns 2,269 shares of the company’s stock valued at $359,000 after acquiring an additional 481 shares during the last quarter. State of Wyoming acquired a new position in Penske Automotive Group in the fourth quarter valued at $67,000. Bank of New York Mellon Corp increased its stake in Penske Automotive Group by 48.6% in the fourth quarter. Bank of New York Mellon Corp now owns 375,767 shares of the company’s stock valued at $59,480,000 after purchasing an additional 122,895 shares during the last quarter. Goldman Sachs Group Inc. lifted its position in Penske Automotive Group by 1.6% during the fourth quarter. Goldman Sachs Group Inc. now owns 337,890 shares of the company’s stock worth $53,485,000 after buying an additional 5,296 shares during the period. Finally, AXQ Capital LP acquired a new stake in Penske Automotive Group in the 4th quarter worth about $485,000. 77.08% of the stock is owned by hedge funds and other institutional investors.

About Penske Automotive Group

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.