Zacks Investment Research Upgrades Penske Automotive Group (PAG) to Buy
Penske Automotive Group (NYSE:PAG) was upgraded by Zacks Investment Research from a “hold” rating to a “buy” rating in a research note issued to investors on Tuesday. The firm presently has a $54.00 price objective on the stock. Zacks Investment Research‘s price target points to a potential upside of 12.78% from the stock’s previous close.
According to Zacks, “Penske Automotive is poised to benefit from expanding dealership network and continued acquisitions. However, high merchandise inventory levels and intensifying competition raise concerns. Plus, changing foreign exchange rates and U.S. market conditions are other headwinds that Penske Automotive struggles with. Also in the last three months, the company’s shares have underperformed the industry it belongs to.”
Several other equities research analysts have also recently commented on PAG. ValuEngine cut Penske Automotive Group from a “buy” rating to a “hold” rating in a research note on Friday, September 1st. Northcoast Research began coverage on Penske Automotive Group in a research report on Thursday, September 28th. They issued a “buy” rating and a $56.00 price target on the stock. Berenberg Bank began coverage on Penske Automotive Group in a research report on Wednesday, October 4th. They issued a “hold” rating and a $52.00 price target on the stock. KeyCorp restated a “hold” rating on shares of Penske Automotive Group in a research report on Wednesday, October 4th. Finally, Gabelli raised their price target on Penske Automotive Group from $68.00 to $69.00 and gave the stock a “buy” rating in a research report on Thursday, October 26th. One investment analyst has rated the stock with a sell rating, three have assigned a hold rating and six have issued a buy rating to the company’s stock. Penske Automotive Group has an average rating of “Buy” and a consensus target price of $55.71.
Penske Automotive Group (NYSE:PAG) last released its earnings results on Wednesday, October 25th. The company reported $1.10 EPS for the quarter, beating the Thomson Reuters’ consensus estimate of $1.08 by $0.02. The company had revenue of $5.52 billion during the quarter, compared to analysts’ expectations of $5.33 billion. Penske Automotive Group had a return on equity of 18.68% and a net margin of 1.75%. The business’s revenue for the quarter was up 7.2% on a year-over-year basis. During the same period last year, the firm earned $1.03 EPS. sell-side analysts predict that Penske Automotive Group will post 4.3 earnings per share for the current fiscal year.
Penske Automotive Group declared that its board has initiated a stock buyback program on Wednesday, October 25th that authorizes the company to repurchase $200.00 million in outstanding shares. This repurchase authorization authorizes the company to repurchase shares of its stock through open market purchases. Stock repurchase programs are generally a sign that the company’s leadership believes its shares are undervalued.
In other Penske Automotive Group news, CFO John D. Jr. Carlson sold 7,000 shares of Penske Automotive Group stock in a transaction dated Monday, November 13th. The stock was sold at an average price of $46.20, for a total transaction of $323,400.00. Following the transaction, the chief financial officer now directly owns 24,844 shares in the company, valued at $1,147,792.80. The transaction was disclosed in a filing with the SEC, which is accessible through this hyperlink. Also, major shareholder Corp Penske bought 1,103,996 shares of Penske Automotive Group stock in a transaction on Friday, October 20th. The shares were acquired at an average price of $45.29 per share, for a total transaction of $49,999,978.84. Following the completion of the acquisition, the insider now owns 11,564,576 shares of the company’s stock, valued at approximately $523,759,647.04. The disclosure for this purchase can be found here. 40.70% of the stock is owned by company insiders.
A number of hedge funds have recently bought and sold shares of PAG. The Manufacturers Life Insurance Company lifted its holdings in Penske Automotive Group by 7.5% during the second quarter. The Manufacturers Life Insurance Company now owns 2,499 shares of the company’s stock worth $110,000 after acquiring an additional 175 shares in the last quarter. Commonwealth Equity Services Inc acquired a new stake in shares of Penske Automotive Group in the 3rd quarter valued at about $199,000. Jane Street Group LLC acquired a new stake in shares of Penske Automotive Group in the 3rd quarter valued at about $201,000. Oppenheimer & Co. Inc. acquired a new stake in shares of Penske Automotive Group in the 2nd quarter valued at about $206,000. Finally, Stephens Inc. AR acquired a new stake in shares of Penske Automotive Group in the 3rd quarter valued at about $230,000. Hedge funds and other institutional investors own 41.40% of the company’s stock.
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About Penske Automotive Group
Penske Automotive Group, Inc is an international transportation services company. The Company operates automotive and commercial truck dealerships principally in the United States, Canada and Western Europe, and distributes commercial vehicles, diesel engines, gas engines, power systems, and related parts and services principally in Australia and New Zealand.
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