Penske Automotive Group (NYSE:PAG) Shares Gap Down on Disappointing Earnings

Penske Automotive Group, Inc. (NYSE:PAG) gapped down prior to trading on Wednesday following a weaker than expected earnings announcement. The stock had previously closed at $163.04, but opened at $154.86. Penske Automotive Group shares last traded at $160.31, with a volume of 78,930 shares traded.

The company reported $3.23 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $3.48 by ($0.25). Penske Automotive Group had a return on equity of 17.43% and a net margin of 3.13%.The company had revenue of $7.70 billion during the quarter, compared to analyst estimates of $7.71 billion. During the same period last year, the business earned $3.39 earnings per share. The firm’s revenue was up 1.4% compared to the same quarter last year.

Penske Automotive Group Increases Dividend

The business also recently announced a quarterly dividend, which will be paid on Tuesday, December 2nd. Shareholders of record on Friday, November 14th will be paid a $1.38 dividend. This is a boost from Penske Automotive Group’s previous quarterly dividend of $1.32. The ex-dividend date of this dividend is Friday, November 14th. This represents a $5.52 dividend on an annualized basis and a dividend yield of 3.4%. Penske Automotive Group’s dividend payout ratio is 36.74%.

Wall Street Analyst Weigh In

A number of analysts have issued reports on PAG shares. Citigroup raised their target price on Penske Automotive Group from $200.00 to $206.00 and gave the stock a “buy” rating in a research note on Thursday, September 25th. Benchmark raised their target price on Penske Automotive Group from $185.00 to $190.00 and gave the stock a “buy” rating in a research note on Wednesday, September 17th. Weiss Ratings reaffirmed a “buy (b+)” rating on shares of Penske Automotive Group in a research note on Wednesday, October 8th. JPMorgan Chase & Co. raised their price objective on Penske Automotive Group from $175.00 to $180.00 and gave the stock a “neutral” rating in a research report on Tuesday, October 14th. Finally, Morgan Stanley raised their price objective on Penske Automotive Group from $180.00 to $190.00 and gave the stock an “overweight” rating in a research report on Thursday, August 14th. Five equities research analysts have rated the stock with a Buy rating and two have issued a Hold rating to the company. Based on data from MarketBeat.com, the company currently has an average rating of “Moderate Buy” and an average price target of $185.17.

Insider Transactions at Penske Automotive Group

In other Penske Automotive Group news, CFO Michelle Hulgrave sold 1,100 shares of Penske Automotive Group stock in a transaction dated Tuesday, August 19th. The stock was sold at an average price of $182.55, for a total value of $200,805.00. Following the completion of the transaction, the chief financial officer directly owned 18,922 shares of the company’s stock, valued at $3,454,211.10. The trade was a 5.49% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this link. Also, Director Lisa Ann Davis sold 1,604 shares of Penske Automotive Group stock in a transaction dated Monday, August 18th. The shares were sold at an average price of $180.74, for a total value of $289,906.96. Following the completion of the transaction, the director owned 1,529 shares of the company’s stock, valued at $276,351.46. The trade was a 51.20% decrease in their position. The SEC filing for this sale provides additional information. 51.70% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Penske Automotive Group

Hedge funds and other institutional investors have recently made changes to their positions in the stock. Root Financial Partners LLC purchased a new position in shares of Penske Automotive Group in the 3rd quarter valued at about $33,000. Sound Income Strategies LLC purchased a new position in shares of Penske Automotive Group in the 2nd quarter valued at about $34,000. Acadian Asset Management LLC purchased a new position in shares of Penske Automotive Group in the 1st quarter valued at about $42,000. GAMMA Investing LLC boosted its stake in shares of Penske Automotive Group by 51.9% in 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 during the period. Finally, Brooklyn Investment Group boosted its stake in shares of Penske Automotive Group by 353.0% in the 1st quarter. Brooklyn Investment Group now owns 453 shares of the company’s stock valued at $65,000 after buying an additional 353 shares during the period. Hedge funds and other institutional investors own 77.08% of the company’s stock.

Penske Automotive Group Stock Down 1.4%

The firm has a 50 day moving average price of $176.05 and a 200-day moving average price of $170.95. The company has a current ratio of 0.90, a quick ratio of 0.21 and a debt-to-equity ratio of 0.16. The firm has a market cap of $10.62 billion, a PE ratio of 11.19 and a beta of 0.88.

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.