Zacks Investment Research cut shares of Penske Automotive Group (NYSE:PAG) from a buy rating to a hold rating in a research note published on Tuesday morning.

According to Zacks, “Penske Automotive completed the acquisition of The Car People, which is expected to earn annualized revenues of roughly $300 million. Prior to this in 2017, it acquired two other used vehicle retailers in the United Kingdom, namely- CarShop and CarSense. These acquisitions will develop the company’s used car business segment and reinforce its position in the country. Also, to enhance shareholders’ value, it has been increasing cash dividends in each sequential quarter. However, fluctuating foreign exchange rates, competition among peers and a large merchandise inventory are few concerns for the company. Also, in the last six months, Penske Automotive’s shares have underperformed the industry it belongs to.”

Other research analysts have also issued research reports about the company. ValuEngine upgraded Penske Automotive Group from a hold rating to a buy rating in a research report on Friday, December 1st. Gabelli raised their price objective on Penske Automotive Group from $68.00 to $69.00 and gave the company a buy rating in a research report on Thursday, October 26th. One equities research analyst has rated the stock with a sell rating, four have issued a hold rating and four have issued a buy rating to the company. The stock currently has an average rating of Hold and a consensus target price of $55.00.

Penske Automotive Group (PAG) opened at $48.89 on Tuesday. The firm has a market capitalization of $4,190.00, a PE ratio of 11.45, a PEG ratio of 1.48 and a beta of 1.45. The company has a current ratio of 1.04, a quick ratio of 0.23 and a debt-to-equity ratio of 1.03. Penske Automotive Group has a 12-month low of $38.33 and a 12-month high of $55.22.

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, March 1st. Stockholders of record on Monday, February 12th will be given a dividend of $0.34 per share. This is a positive change from Penske Automotive Group’s previous quarterly dividend of $0.33. The ex-dividend date of this dividend is Friday, February 9th. This represents a $1.36 dividend on an annualized basis and a dividend yield of 2.78%. Penske Automotive Group’s dividend payout ratio (DPR) is presently 30.91%.

Penske Automotive Group declared that its Board of Directors has authorized a share buyback plan on Wednesday, October 25th that permits the company to buyback $200.00 million in shares. This buyback authorization permits the company to reacquire shares of its stock through open market purchases. Stock buyback plans are usually an indication that the company’s leadership believes its stock is undervalued.

In other news, CFO John D. Jr. Carlson sold 7,000 shares of the firm’s 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 completion of the transaction, the chief financial officer now owns 24,844 shares in the company, valued at $1,147,792.80. The sale was disclosed in a document filed with the SEC, which is available at the SEC website. Company insiders own 40.70% of the company’s stock.

A number of institutional investors and hedge funds have recently added to or reduced their stakes in PAG. Alliancebernstein L.P. grew its position in Penske Automotive Group by 16.7% in the second quarter. Alliancebernstein L.P. now owns 22,412 shares of the company’s stock worth $984,000 after acquiring an additional 3,212 shares in the last quarter. Amalgamated Bank grew its position in Penske Automotive Group by 17.0% in the second quarter. Amalgamated Bank now owns 6,455 shares of the company’s stock worth $283,000 after acquiring an additional 937 shares in the last quarter. GSA Capital Partners LLP grew its position in Penske Automotive Group by 68.6% in the second quarter. GSA Capital Partners LLP now owns 9,107 shares of the company’s stock worth $400,000 after acquiring an additional 3,707 shares in the last quarter. Citigroup Inc. grew its position in Penske Automotive Group by 202.1% in the second quarter. Citigroup Inc. now owns 15,525 shares of the company’s stock worth $681,000 after acquiring an additional 10,386 shares in the last quarter. Finally, Vanguard Group Inc. grew its position in Penske Automotive Group by 1.9% in the second quarter. Vanguard Group Inc. now owns 2,783,279 shares of the company’s stock worth $122,214,000 after acquiring an additional 51,334 shares in the last quarter. Institutional investors own 41.52% of the company’s stock.

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Penske Automotive Group Company Profile

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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