Citigroup Issues Positive Forecast for Penske Automotive Group (NYSE:PAG) Stock Price

Penske Automotive Group (NYSE:PAG) had its price objective increased by Citigroup from $185.00 to $195.00 in a research report report published on Monday,Benzinga reports. Citigroup currently has a buy rating on the stock.

Several other equities analysts have also commented on the company. JPMorgan Chase & Co. reduced their price objective on Penske Automotive Group from $165.00 to $140.00 and set an “underweight” rating on the stock in a research report on Thursday, March 27th. StockNews.com raised Penske Automotive Group from a “hold” rating to a “buy” rating in a research note on Wednesday, April 23rd. Finally, Stephens reissued an “equal weight” rating and set a $140.00 price target on shares of Penske Automotive Group in a research note on Monday, May 5th. One analyst has rated the stock with a sell rating, one has issued a hold rating and five have given a buy rating to the stock. According to data from MarketBeat, the stock currently has an average rating of “Moderate Buy” and an average price target of $167.00.

Penske Automotive Group Price Performance

PAG stock opened at $167.14 on Monday. The firm has a 50 day simple moving average of $152.67 and a two-hundred day simple moving average of $158.85. The stock has a market cap of $11.06 billion, a PE ratio of 12.16 and a beta of 0.90. Penske Automotive Group has a one year low of $134.05 and a one year 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.

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

Penske Automotive Group Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Tuesday, June 3rd. Investors of record on Tuesday, May 27th will be paid a $1.26 dividend. This represents a $5.04 annualized dividend and a dividend yield of 3.02%. This is an increase from Penske Automotive Group’s previous quarterly dividend of $1.22. The ex-dividend date is Tuesday, May 27th. Penske Automotive Group’s payout ratio is presently 35.49%.

Penske Automotive Group announced that its Board of Directors has authorized a stock buyback plan on Wednesday, May 14th that permits the company to buyback $250.00 million in shares. This buyback authorization permits the company to buy up to 2.3% of its shares through open market purchases. Shares buyback plans are generally a sign that the company’s leadership believes its stock is undervalued.

Insiders Place Their Bets

In other Penske Automotive Group news, Director John Barr sold 1,529 shares of the company’s stock in a transaction on Thursday, March 13th. The shares were sold at an average price of $155.45, for a total value of $237,683.05. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Insiders own 51.70% of the company’s stock.

Hedge Funds Weigh In On Penske Automotive Group

Several hedge funds and other institutional investors have recently modified their holdings of the stock. Merit Financial Group LLC bought a new position in shares of Penske Automotive Group in the 4th quarter worth approximately $287,000. Nisa Investment Advisors LLC grew its stake in Penske Automotive Group by 18.3% in the fourth quarter. Nisa Investment Advisors LLC now owns 25,916 shares of the company’s stock worth $3,951,000 after purchasing an additional 4,000 shares during the period. Janney Montgomery Scott LLC raised its holdings in Penske Automotive Group by 19.8% in the fourth quarter. Janney Montgomery Scott LLC now owns 55,767 shares of the company’s stock worth $8,501,000 after purchasing an additional 9,199 shares in the last quarter. Inspire Investing LLC lifted its position in Penske Automotive Group by 7.8% during the fourth quarter. Inspire Investing LLC now owns 6,164 shares of the company’s stock valued at $940,000 after buying an additional 445 shares during the period. Finally, Applied Capital LLC FL boosted its holdings in shares of Penske Automotive Group by 2.0% during the 4th quarter. Applied Capital LLC FL now owns 21,600 shares of the company’s stock valued at $3,293,000 after buying an additional 424 shares in the last quarter. Hedge funds and other 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.