Penske Automotive Group (NYSE:PAG) Sets New 1-Year High – Still a Buy?

Penske Automotive Group, Inc. (NYSE:PAG) shares reached a new 52-week high on Wednesday . The company traded as high as $199.14 and last traded at $199.4350, with a volume of 31861 shares. The stock had previously closed at $193.55.

Wall Street Analyst Weigh In

Several equities analysts have recently issued reports on PAG shares. Citigroup lifted their price target on Penske Automotive Group from $193.00 to $199.00 and gave the company a “buy” rating in a research report on Wednesday, May 6th. Morgan Stanley restated an “overweight” rating and issued a $190.00 price objective on shares of Penske Automotive Group in a report on Thursday, May 7th. Stephens lifted their target price on Penske Automotive Group from $155.00 to $160.00 and gave the stock an “equal weight” rating in a report on Monday, May 4th. JPMorgan Chase & Co. boosted their price target on shares of Penske Automotive Group from $165.00 to $170.00 and gave the stock a “neutral” rating in a research report on Thursday, May 7th. Finally, Weiss Ratings raised shares of Penske Automotive Group from a “hold (c+)” rating to a “buy (b-)” rating in a report on Friday. Seven analysts have rated the stock with a Buy rating and three have given a Hold rating to the stock. According to data from MarketBeat, Penske Automotive Group currently has a consensus rating of “Moderate Buy” and an average target price of $194.62.

Penske Automotive Group Price Performance

The company has a market cap of $13.14 billion, a price-to-earnings ratio of 14.94, a P/E/G ratio of 2.50 and a beta of 0.87. The company has a current ratio of 0.96, a quick ratio of 0.22 and a debt-to-equity ratio of 0.39. The business has a 50-day moving average price of $174.95 and a 200 day moving average price of $164.46.

Penske Automotive Group (NYSE:PAG) last issued its earnings results on Wednesday, April 29th. The company reported $3.05 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $2.91 by $0.14. The business had revenue of $7.86 billion for the quarter, compared to analysts’ expectations of $7.71 billion. Penske Automotive Group had a return on equity of 15.13% and a net margin of 2.85%.The company’s quarterly revenue was down 1.1% on a year-over-year basis. During the same period in the previous year, the firm posted $3.66 EPS. As a group, research analysts expect that Penske Automotive Group, Inc. will post 13.45 earnings per share for the current fiscal year.

Penske Automotive Group Increases Dividend

The business also recently declared a quarterly dividend, which was paid on Wednesday, June 3rd. Investors of record on Tuesday, May 26th were given a $1.42 dividend. This is a positive change from Penske Automotive Group’s previous quarterly dividend of $1.40. The ex-dividend date was Tuesday, May 26th. This represents a $5.68 dividend on an annualized basis and a dividend yield of 2.8%. Penske Automotive Group’s dividend payout ratio is 42.39%.

Insider Transactions at Penske Automotive Group

In other Penske Automotive Group news, Director Greg C. Smith sold 1,488 shares of the firm’s stock in a transaction dated Monday, May 18th. The shares were sold at an average price of $160.02, for a total value of $238,109.76. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, CFO Michelle Hulgrave sold 1,500 shares of Penske Automotive Group stock in a transaction that occurred 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 completion of the transaction, the chief financial officer directly owned 17,596 shares in the company, valued at approximately $3,022,992.80. This trade represents a 7.86% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Company insiders own 52.90% of the company’s stock.

Institutional Investors Weigh In On Penske Automotive Group

Several hedge funds have recently made changes to their positions in PAG. Parallel Advisors LLC grew its position in shares of Penske Automotive Group by 15.1% during the 1st quarter. Parallel Advisors LLC now owns 441 shares of the company’s stock worth $66,000 after buying an additional 58 shares during the period. California State Teachers Retirement System raised its position in shares of Penske Automotive Group by 0.4% in the 2nd quarter. California State Teachers Retirement System now owns 18,434 shares of the company’s stock valued at $3,167,000 after acquiring an additional 65 shares during the period. Bessemer Group Inc. boosted its stake in Penske Automotive Group by 8.5% during the 1st quarter. Bessemer Group Inc. now owns 830 shares of the company’s stock worth $124,000 after acquiring an additional 65 shares during the last quarter. Rothschild Investment LLC boosted its stake in Penske Automotive Group by 37.5% during the 4th quarter. Rothschild Investment LLC now owns 242 shares of the company’s stock worth $38,000 after acquiring an additional 66 shares during the last quarter. Finally, Focus Partners Advisor Solutions LLC grew its holdings in Penske Automotive Group by 2.7% during the fourth quarter. Focus Partners Advisor Solutions LLC now owns 2,630 shares of the company’s stock valued at $416,000 after purchasing an additional 70 shares during the period. Hedge funds and other institutional investors 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.