Penske Automotive Group Inc. (PAG) Downgraded by Zacks Investment Research
Penske Automotive Group Inc. (NYSE:PAG) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a report released on Monday.
According to Zacks, “Penske Automotive is poised to benefit from increasing dealerships, rising sales of new vehicles and capital deployment. However, the large merchandise inventory and intensifying competition in the industry pose concerns. Further, Penske Automotive’s business is exposed to fluctuations in foreign exchange rates. The company’s earnings estimates have remained stable over the last 30 days. It has a mostly positive record of earnings surprises in recent quarters.”
A number of other equities analysts also recently commented on PAG. Seaport Global Securities initiated coverage on shares of Penske Automotive Group in a research note on Tuesday, August 9th. They set a “neutral” rating for the company. Gabelli downgraded shares of Penske Automotive Group from a “buy” rating to a “hold” rating in a research note on Thursday, September 15th. Finally, Stifel Nicolaus downgraded shares of Penske Automotive Group from a “buy” rating to a “hold” rating in a research note on Friday, September 16th. One investment analyst has rated the stock with a sell rating, three have assigned a hold rating and three have given a buy rating to the company’s stock. The company presently has a consensus rating of “Hold” and an average target price of $48.00.
Shares of Penske Automotive Group (NYSE:PAG) traded down 0.08% during midday trading on Monday, reaching $48.14. The company’s stock had a trading volume of 240,289 shares. The stock has a market capitalization of $4.10 billion, a price-to-earnings ratio of 12.86 and a beta of 1.56. Penske Automotive Group has a 52 week low of $29.29 and a 52 week high of $51.84. The company has a 50 day moving average of $46.28 and a 200-day moving average of $39.03.
Penske Automotive Group (NYSE:PAG) last issued its earnings results on Thursday, July 28th. The company reported $1.11 EPS for the quarter, topping analysts’ consensus estimates of $1.09 by $0.02. The firm earned $5.30 billion during the quarter, compared to the consensus estimate of $5.17 billion. Penske Automotive Group had a net margin of 1.65% and a return on equity of 18.75%. The company’s revenue was up 6.8% compared to the same quarter last year. During the same quarter in the previous year, the firm posted $1.04 earnings per share. Equities research analysts predict that Penske Automotive Group will post $3.89 earnings per share for the current year.
In related news, major shareholder Corp Penske purchased 220,632 shares of Penske Automotive Group stock in a transaction that occurred on Friday, August 5th. The stock was purchased at an average cost of $39.35 per share, with a total value of $8,681,869.20. The acquisition was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, EVP Shane M. Spradlin sold 4,900 shares of the business’s stock in a transaction on Monday, September 12th. The shares were sold at an average price of $48.31, for a total transaction of $236,719.00. The disclosure for this sale can be found here. 37.20% of the stock is currently owned by corporate insiders.
A number of large investors have recently made changes to their positions in PAG. Vanguard Group Inc. boosted its stake in shares of Penske Automotive Group by 0.3% in the second quarter. Vanguard Group Inc. now owns 2,737,562 shares of the company’s stock worth $86,124,000 after buying an additional 9,121 shares during the period. Burgundy Asset Management Ltd. boosted its stake in shares of Penske Automotive Group by 12.1% in the second quarter. Burgundy Asset Management Ltd. now owns 2,588,167 shares of the company’s stock worth $81,424,000 after buying an additional 280,120 shares during the last quarter. BlackRock Institutional Trust Company N.A. boosted its stake in shares of Penske Automotive Group by 6.1% in the second quarter. BlackRock Institutional Trust Company N.A. now owns 1,739,066 shares of the company’s stock worth $54,711,000 after buying an additional 100,268 shares during the last quarter. Sentry Investments Corp. boosted its stake in shares of Penske Automotive Group by 4.9% in the second quarter. Sentry Investments Corp. now owns 1,318,661 shares of the company’s stock worth $41,485,000 after buying an additional 62,000 shares during the last quarter. Finally, Fiduciary Management Inc. WI acquired a new stake in shares of Penske Automotive Group during the second quarter worth approximately $31,193,000. 40.52% of the stock is owned by hedge funds and other institutional investors.
About Penske Automotive Group
Penske Automotive Group, Inc is a transportation services company that operates automotive and commercial vehicle dealerships in the United States and Western Europe. The Company distributes commercial vehicles, diesel engines, gas engines, power systems and related parts, and services in Australia and New Zealand.
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