Two Sigma Investments LP Raises Stake in Penske Automotive Group, Inc. (NYSE:PAG)

Two Sigma Investments LP grew its stake in shares of Penske Automotive Group, Inc. (NYSE:PAG) by 21.0% in the fourth quarter, according to its most recent disclosure with the Securities and Exchange Commission. The firm owned 10,253 shares of the company’s stock after purchasing an additional 1,777 shares during the quarter. Two Sigma Investments LP’s holdings in Penske Automotive Group were worth $1,563,000 at the end of the most recent quarter.

A number of other large investors have also recently made changes to their positions in the stock. Whittier Trust Co. of Nevada Inc. bought a new stake in shares of Penske Automotive Group in the fourth quarter valued at about $40,000. Headlands Technologies LLC bought a new stake in shares of Penske Automotive Group in the fourth quarter valued at about $76,000. TD Waterhouse Canada Inc. raised its holdings in shares of Penske Automotive Group by 42.4% in the fourth quarter. TD Waterhouse Canada Inc. now owns 531 shares of the company’s stock valued at $81,000 after acquiring an additional 158 shares in the last quarter. State of Wyoming bought a new stake in shares of Penske Automotive Group in the fourth quarter valued at about $105,000. Finally, KBC Group NV raised its holdings in shares of Penske Automotive Group by 33.5% in the fourth quarter. KBC Group NV now owns 749 shares of the company’s stock valued at $114,000 after acquiring an additional 188 shares in the last quarter. 77.08% of the stock is owned by hedge funds and other institutional investors.

Analyst Upgrades and Downgrades

Several analysts recently weighed in on PAG shares. JPMorgan Chase & Co. decreased their price objective on Penske Automotive Group from $165.00 to $140.00 and set an “underweight” rating for the company in a report on Thursday, March 27th. Citigroup lifted their price objective on Penske Automotive Group from $185.00 to $195.00 and gave the company a “buy” rating in a report on Monday, May 19th. Wall Street Zen upgraded Penske Automotive Group from a “hold” rating to a “buy” rating in a report on Wednesday, April 23rd. Finally, Stephens restated an “equal weight” rating and issued a $140.00 price objective on shares of Penske Automotive Group in a report on Monday, May 5th. One investment analyst has rated the stock with a sell rating, one has assigned a hold rating and five have given a buy rating to the company. According to MarketBeat.com, Penske Automotive Group currently has a consensus rating of “Moderate Buy” and an average price target of $167.00.

Insider Transactions at Penske Automotive Group

In related news, CEO Roger S. Penske sold 77,357 shares of the company’s stock in a transaction that occurred on Tuesday, June 3rd. The stock was sold at an average price of $161.37, for a total value of $12,483,099.09. Following the sale, the chief executive officer now owns 140,042 shares in the company, valued at $22,598,577.54. This represents a 35.58% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, Director John Barr sold 1,529 shares of the company’s stock in a transaction that occurred on Thursday, March 13th. The shares were sold at an average price of $155.45, for a total value of $237,683.05. The disclosure for this sale can be found here. Insiders own 51.70% of the company’s stock.

Penske Automotive Group Stock Performance

Shares of Penske Automotive Group stock opened at $163.34 on Wednesday. Penske Automotive Group, Inc. has a one year low of $134.05 and a one year high of $180.12. The company has a market capitalization of $10.81 billion, a PE ratio of 11.88 and a beta of 0.90. The company has a debt-to-equity ratio of 0.22, a quick ratio of 0.20 and a current ratio of 0.91. The company has a 50-day simple moving average of $155.55 and a two-hundred day simple moving average of $159.13.

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

Penske Automotive Group Increases Dividend

The firm also recently declared a quarterly dividend, which was paid on Tuesday, June 3rd. Stockholders of record on Tuesday, May 27th were paid a dividend of $1.26 per share. This is a positive change from Penske Automotive Group’s previous quarterly dividend of $1.22. The ex-dividend date of this dividend was Tuesday, May 27th. This represents a $5.04 dividend on an annualized basis and a dividend yield of 3.09%. Penske Automotive Group’s payout ratio is presently 35.49%.

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

Penske Automotive Group Company Profile

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.