Zacks Research Has Pessimistic Outlook of PAG Q3 Earnings

Penske Automotive Group, Inc. (NYSE:PAG) – Equities research analysts at Zacks Research decreased their Q3 2026 EPS estimates for Penske Automotive Group in a research note issued on Monday, March 16th. Zacks Research analyst Team now expects that the company will post earnings per share of $3.53 for the quarter, down from their prior estimate of $3.62. The consensus estimate for Penske Automotive Group’s current full-year earnings is $13.86 per share. Zacks Research also issued estimates for Penske Automotive Group’s FY2026 earnings at $13.81 EPS and Q1 2027 earnings at $3.84 EPS.

Penske Automotive Group (NYSE:PAG) last posted its earnings results on Wednesday, February 11th. The company reported $2.91 EPS for the quarter, missing the consensus estimate of $3.19 by ($0.28). Penske Automotive Group had a return on equity of 15.77% and a net margin of 2.91%.The business had revenue of $7.77 billion for the quarter, compared to the consensus estimate of $7.62 billion. During the same period in the previous year, the firm earned $3.54 earnings per share. The company’s revenue was down 3.8% on a year-over-year basis.

Several other brokerages have also recently issued reports on PAG. Weiss Ratings cut Penske Automotive Group from a “buy (b-)” rating to a “hold (c+)” rating in a research report on Monday. Barclays upped their target price on shares of Penske Automotive Group from $190.00 to $195.00 and gave the stock an “overweight” rating in a research note on Tuesday, February 17th. Bank of America assumed coverage on shares of Penske Automotive Group in a research report on Tuesday, December 9th. They set a “buy” rating and a $195.00 price target on the stock. Finally, Deutsche Bank Aktiengesellschaft reiterated a “buy” rating on shares of Penske Automotive Group in a research note on Monday, December 8th. Six analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the company. According to data from MarketBeat, the company presently has a consensus rating of “Moderate Buy” and an average target price of $184.43.

Penske Automotive Group Price Performance

PAG stock opened at $145.26 on Wednesday. The company has a debt-to-equity ratio of 0.32, a quick ratio of 0.22 and a current ratio of 0.99. The business has a 50-day simple moving average of $161.03 and a two-hundred day simple moving average of $165.43. The company has a market capitalization of $9.55 billion, a P/E ratio of 10.76, a price-to-earnings-growth ratio of 1.50 and a beta of 0.90. Penske Automotive Group has a 52-week low of $134.05 and a 52-week high of $189.51.

Institutional Inflows and Outflows

A number of institutional investors have recently made changes to their positions in the company. Bank of Montreal Can raised its stake in Penske Automotive Group by 39,232.7% in the 4th quarter. Bank of Montreal Can now owns 863,352 shares of the company’s stock valued at $136,660,000 after acquiring an additional 861,157 shares during the period. Victory Capital Management Inc. raised its position in shares of Penske Automotive Group by 48.9% in the third quarter. Victory Capital Management Inc. now owns 1,391,281 shares of the company’s stock valued at $241,958,000 after purchasing an additional 456,611 shares during the period. Norges Bank purchased a new stake in shares of Penske Automotive Group during the 4th quarter valued at approximately $32,137,000. Dimensional Fund Advisors LP lifted its stake in shares of Penske Automotive Group by 13.7% during the 4th quarter. Dimensional Fund Advisors LP now owns 1,293,467 shares of the company’s stock valued at $204,761,000 after buying an additional 156,308 shares in the last quarter. Finally, Hamlin Capital Management LLC bought a new position in Penske Automotive Group in the 4th quarter worth approximately $20,203,000. Hedge funds and other institutional investors own 77.08% of the company’s stock.

Penske Automotive Group Increases Dividend

The company also recently disclosed a quarterly dividend, which was paid on Thursday, March 5th. Shareholders of record on Wednesday, February 25th were issued a dividend of $1.40 per share. This represents a $5.60 annualized dividend and a yield of 3.9%. This is a positive change from Penske Automotive Group’s previous quarterly dividend of $1.38. The ex-dividend date of this dividend was Wednesday, February 25th. Penske Automotive Group’s dividend payout ratio is currently 41.48%.

Key Headlines Impacting Penske Automotive Group

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

• Positive Sentiment: Zacks raised Q1 2027 EPS to $3.84 (from $3.75) and modestly increased Q1 2026 and Q4 2026 quarter assumptions — a signal that some upcoming quarters may beat prior expectations, which could limit downside. MarketBeat report
• Positive Sentiment: Zacks lifted FY2028 EPS to $15.84 (from $15.77), which supports a longer‑term growth outlook and indicates analysts see recovery beyond the near term. MarketBeat report
• Neutral Sentiment: The consensus full‑year EPS stays roughly unchanged around $13.86, so aggregate street expectations for the current fiscal year remain stable despite the intra‑year shifts. MarketBeat report
• Negative Sentiment: Zacks cut multiple near‑term estimates: Q2 2026 (from $3.66 to $3.52), Q3 2026 (from $3.62 to $3.53), FY2026 (from $13.92 to $13.81) and trimmed FY2027 and several 2027 quarter forecasts — these downgrades imply weaker near‑term profitability and are likely the main reason for downward pressure on the stock today. MarketBeat report

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.