Penske Automotive Group (NYSE:PAG) Trading Down 6.2% After Analyst Downgrade

Penske Automotive Group, Inc. (NYSE:PAG)’s share price traded down 6.2% on Thursday after JPMorgan Chase & Co. lowered their price target on the stock from $160.00 to $155.00. JPMorgan Chase & Co. currently has an underweight rating on the stock. Penske Automotive Group traded as low as $165.72 and last traded at $164.55. 53,358 shares were traded during mid-day trading, a decline of 74% from the average session volume of 204,585 shares. The stock had previously closed at $175.36.

Several other research analysts have also issued reports on the stock. Wall Street Zen raised shares of Penske Automotive Group from a “hold” rating to a “buy” rating in a research note on Wednesday, April 23rd. Bank of America increased their target price on shares of Penske Automotive Group from $190.00 to $205.00 and gave the company a “buy” rating in a report on Monday, June 16th. Stephens restated an “equal weight” rating and set a $140.00 price objective on shares of Penske Automotive Group in a report on Wednesday, June 11th. Finally, Citigroup increased their target price on shares of Penske Automotive Group from $185.00 to $195.00 and gave the stock a “buy” rating in a research report on Monday, May 19th. One equities research analyst has rated the stock with a sell rating, one has assigned a hold rating and five have assigned a buy rating to the stock. According to data from MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and a consensus target price of $175.00.

Insider Buying and Selling at Penske Automotive Group

In other news, Director Greg C. Smith sold 1,529 shares of the business’s stock in a transaction that occurred on Tuesday, June 3rd. The shares were sold at an average price of $161.64, for a total value of $247,147.56. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, EVP Shane M. Spradlin sold 3,158 shares of Penske Automotive Group stock in a transaction on Monday, June 9th. The stock was sold at an average price of $167.10, for a total transaction of $527,701.80. Following the completion of the transaction, the executive vice president directly owned 36,152 shares in the company, valued at approximately $6,040,999.20. The trade was a 8.03% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold a total of 82,044 shares of company stock worth $13,257,948 over the last three months. 51.70% of the stock is owned by insiders.

Institutional Inflows and Outflows

Several hedge funds have recently made changes to their positions in the company. Sound Income Strategies LLC purchased a new stake in shares of Penske Automotive Group in the 2nd quarter worth about $34,000. Whittier Trust Co. of Nevada Inc. bought a new position in shares of Penske Automotive Group in the 4th quarter worth approximately $40,000. Acadian Asset Management LLC purchased a new stake in Penske Automotive Group in the 1st quarter worth approximately $42,000. UMB Bank n.a. increased its holdings in Penske Automotive Group by 421.5% in the 1st quarter. UMB Bank n.a. now owns 339 shares of the company’s stock worth $49,000 after acquiring an additional 274 shares in the last quarter. Finally, GAMMA Investing LLC grew its holdings in Penske Automotive Group by 51.9% during the 1st quarter. GAMMA Investing LLC now owns 398 shares of the company’s stock valued at $57,000 after buying an additional 136 shares in the last quarter. 77.08% of the stock is owned by hedge funds and other institutional investors.

Penske Automotive Group Stock Performance

The company has a debt-to-equity ratio of 0.18, a quick ratio of 0.23 and a current ratio of 0.90. The business’s fifty day simple moving average is $170.22 and its 200-day simple moving average is $161.80. The firm has a market capitalization of $10.88 billion, a PE ratio of 11.58, a price-to-earnings-growth ratio of 1.70 and a beta of 0.91.

Penske Automotive Group (NYSE:PAG) last issued its quarterly earnings results on Wednesday, April 30th. The company reported $3.39 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $3.27 by $0.12. Penske Automotive Group had a return on equity of 17.80% and a net margin of 3.10%. The company had revenue of $7.60 billion during the quarter, compared to the consensus estimate of $7.68 billion. During the same period last year, the company earned $3.21 earnings per share. Penske Automotive Group’s revenue was up 2.1% on a year-over-year basis. As a group, equities research analysts expect that Penske Automotive Group, Inc. will post 13.86 EPS for the current year.

Penske Automotive Group Increases Dividend

The company also recently announced a quarterly dividend, which was paid on Tuesday, June 3rd. Shareholders of record on Tuesday, May 27th were issued a $1.26 dividend. The ex-dividend date was Tuesday, May 27th. This is an increase from Penske Automotive Group’s previous quarterly dividend of $1.22. This represents a $5.04 dividend on an annualized basis and a yield of 3.06%. Penske Automotive Group’s payout ratio is currently 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.