Penske Automotive Group (NYSE:PAG) Downgraded by Citigroup to “Neutral”

Citigroup downgraded shares of Penske Automotive Group (NYSE:PAG) from a buy rating to a neutral rating in a report published on Thursday, MarketBeat reports. The firm currently has $210.00 price target on the stock, up from their previous price target of $199.00.

A number of other brokerages have also recently weighed in on PAG. Morgan Stanley restated an “overweight” rating and issued a $190.00 price objective on shares of Penske Automotive Group in a research note on Thursday, May 7th. Weiss Ratings upgraded shares of Penske Automotive Group from a “hold (c+)” rating to a “buy (b-)” rating in a research note on Friday, July 10th. Benchmark downgraded shares of Penske Automotive Group from a “buy” rating to a “hold” rating in a report on Wednesday. JPMorgan Chase & Co. boosted their target price 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, Stephens boosted their target price on shares of Penske Automotive Group from $155.00 to $160.00 and gave the stock an “equal weight” rating in a research report on Monday, May 4th. Five investment analysts have rated the stock with a Buy rating and five have issued a Hold rating to the company. According to MarketBeat.com, the stock has an average rating of “Moderate Buy” and an average target price of $196.00.

Penske Automotive Group Stock Up 0.5%

Shares of PAG stock opened at $215.71 on Thursday. The stock’s 50 day simple moving average is $179.65 and its 200 day simple moving average is $166.53. The company has a debt-to-equity ratio of 0.39, a quick ratio of 0.22 and a current ratio of 0.96. Penske Automotive Group has a twelve month low of $140.12 and a twelve month high of $219.09. The company has a market capitalization of $14.18 billion, a price-to-earnings ratio of 16.10, a PEG ratio of 2.78 and a beta of 0.87.

Penske Automotive Group (NYSE:PAG) last announced 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. Penske Automotive Group had a return on equity of 15.13% and a net margin of 2.85%.The firm had revenue of $7.86 billion during the quarter, compared to analysts’ expectations of $7.71 billion. During the same quarter in the prior year, the business earned $3.66 earnings per share. The company’s revenue was down 1.1% on a year-over-year basis. As a group, research analysts predict that Penske Automotive Group will post 13.43 EPS for the current year.

Penske Automotive Group Increases Dividend

The firm also recently declared a quarterly dividend, which will be paid on Tuesday, September 1st. Stockholders of record on Friday, August 14th will be issued a dividend of $1.44 per share. This represents a $5.76 dividend on an annualized basis and a dividend yield of 2.7%. This is a boost from Penske Automotive Group’s previous quarterly dividend of $1.42. The ex-dividend date is Friday, August 14th. Penske Automotive Group’s dividend payout ratio is presently 42.39%.

Insider Activity at Penske Automotive Group

In other news, CFO Michelle Hulgrave sold 1,500 shares of the firm’s stock in a transaction on Tuesday, June 2nd. The shares were sold at an average price of $171.80, for a total value of $257,700.00. Following the sale, the chief financial officer 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. The sale was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Also, Director Greg C. Smith sold 1,488 shares of the firm’s stock in a transaction on Monday, May 18th. The stock was sold at an average price of $160.02, for a total transaction of $238,109.76. Additional details regarding this sale are available in the official SEC disclosure. 52.90% of the stock is currently owned by corporate insiders.

Institutional Trading of Penske Automotive Group

Several hedge funds and other institutional investors have recently bought and sold shares of PAG. Navalign LLC acquired a new position in shares of Penske Automotive Group during the fourth quarter valued at about $26,000. International Assets Investment Management LLC acquired a new stake in Penske Automotive Group during the fourth quarter worth about $30,000. Rothschild Investment LLC increased its stake in Penske Automotive Group by 37.5% during the fourth quarter. Rothschild Investment LLC now owns 242 shares of the company’s stock valued at $38,000 after acquiring an additional 66 shares during the period. Acadian Asset Management LLC bought a new position in Penske Automotive Group during the first quarter valued at about $42,000. Finally, Versant Capital Management Inc increased its stake in Penske Automotive Group by 179.0% during the second quarter. Versant Capital Management Inc now owns 279 shares of the company’s stock valued at $50,000 after acquiring an additional 179 shares during the period. 77.08% of the stock is currently owned by institutional investors and hedge funds.

Trending Headlines about Penske Automotive Group

Here are the key news stories impacting Penske Automotive Group this week:

• Positive Sentiment: Penske Automotive confirmed receipt of an unsolicited, preliminary, non-binding proposal from Penske Corporation and Mitsui to take the company private at $210 per share, a premium to the recent trading level and a signal that a buyout could be near. Article Title
• Positive Sentiment: The company announced its 23rd consecutive quarterly dividend increase, lifting the payout to $1.44 per share from $1.42, which supports the stock’s income appeal and reflects continued cash generation. Article Title
• Positive Sentiment: Several news reports highlighted the potential buyout as a roughly $3.8 billion to $4 billion deal, reinforcing speculation that shareholders could receive a takeover premium. Article Title
• Neutral Sentiment: Citigroup downgraded PAG to “neutral” from “buy,” but raised its price target to $210, which is still close to the buyout talk and suggests limited near-term upside from current levels. Article Title

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.