Citigroup Downgrades Penske Automotive Group (NYSE:PAG) to Neutral

Penske Automotive Group (NYSE:PAG) was downgraded by equities researchers at Citigroup from a “buy” rating to a “neutral” rating in a research note issued to investors on Thursday. They presently have a $210.00 target price on the stock. Citigroup’s price objective points to a potential downside of 1.96% from the stock’s current price.

A number of other analysts have also recently commented on the company. Bank of America lifted their price objective on Penske Automotive Group from $200.00 to $238.00 and gave the stock a “buy” rating in a research report on Thursday, July 9th. Barclays upped their target price on shares of Penske Automotive Group from $190.00 to $220.00 and gave the company an “overweight” rating in a report on Wednesday, July 15th. 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 price objective on shares of Penske Automotive Group from $165.00 to $170.00 and gave the company a “neutral” rating in a research report on Thursday, May 7th. Finally, UBS Group set a $190.00 price objective on shares of Penske Automotive Group in a research report on Friday, July 10th. Five research analysts have rated the stock with a Buy rating and five have assigned a Hold rating to the company. Based on data from MarketBeat.com, Penske Automotive Group presently has an average rating of “Moderate Buy” and an average price target of $196.00.

Penske Automotive Group Stock Up 9.7%

Shares of NYSE PAG opened at $214.19 on Thursday. Penske Automotive Group has a 12-month low of $140.12 and a 12-month high of $219.09. The company has a market capitalization of $14.08 billion, a PE ratio of 15.98, a price-to-earnings-growth ratio of 2.53 and a beta of 0.87. The company has a debt-to-equity ratio of 0.39, a current ratio of 0.96 and a quick ratio of 0.22. The firm’s 50-day moving average is $178.72 and its two-hundred day moving average is $166.13.

Penske Automotive Group (NYSE:PAG) last posted its earnings results on Wednesday, April 29th. The company reported $3.05 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $2.91 by $0.14. The firm had revenue of $7.86 billion for the quarter, compared to analyst estimates of $7.71 billion. Penske Automotive Group had a return on equity of 15.13% and a net margin of 2.85%.Penske Automotive Group’s revenue was down 1.1% on a year-over-year basis. During the same quarter in the prior year, the company earned $3.66 EPS. Equities analysts anticipate that Penske Automotive Group will post 13.43 EPS for the current fiscal year.

Insiders Place Their Bets

In other news, CFO Michelle Hulgrave sold 1,500 shares of the business’s stock in a transaction on Tuesday, June 2nd. The shares were sold at an average price of $171.80, for a total transaction of $257,700.00. Following the completion of the sale, the chief financial officer directly owned 17,596 shares of the company’s stock, valued at $3,022,992.80. The trade was a 7.86% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. Also, Director Greg C. Smith sold 1,488 shares of the stock in a transaction on Monday, May 18th. The stock was sold at an average price of $160.02, for a total value of $238,109.76. The SEC filing for this sale provides additional information. 52.90% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Several hedge funds have recently bought and sold shares of the business. Navalign LLC purchased a new stake in Penske Automotive Group during the fourth quarter worth approximately $26,000. International Assets Investment Management LLC purchased a new position in shares of Penske Automotive Group in the 4th quarter valued at $30,000. Rothschild Investment LLC raised its stake in shares of Penske Automotive Group by 37.5% in the 4th 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. Versant Capital Management Inc lifted its holdings in shares of Penske Automotive Group by 179.0% during the 2nd quarter. Versant Capital Management Inc now owns 279 shares of the company’s stock valued at $50,000 after acquiring an additional 179 shares in the last quarter. Finally, Acadian Asset Management LLC acquired a new position in shares of Penske Automotive Group during the 1st quarter valued at $42,000. Hedge funds and other institutional investors own 77.08% of the company’s stock.

Penske Automotive Group News Roundup

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

• Positive Sentiment: Penske Automotive confirmed it received an unsolicited, preliminary, non-binding proposal from Penske Corporation and Mitsui & Co. to take the company private, sparking speculation that shareholders could receive a buyout premium. PENSKE AUTOMOTIVE GROUP CONFIRMS RECEIPT OF UNSOLICITED, PRELIMINARY AND NON-BINDING TAKE PRIVATE PROPOSAL
• Positive Sentiment: Reports said Penske Corp. and Mitsui offered about $210 per share, valuing the company at nearly $4 billion and reinforcing takeover momentum. Penske, Mitsui Bid to Take Penske Automotive Private in Near $4 Billion Deal
• Positive Sentiment: The board approved a 23rd consecutive quarterly dividend increase to $1.44 per share, signaling confidence in cash flow and returning more capital to investors. PENSKE AUTOMOTIVE GROUP ANNOUNCES 23RD QUARTERLY DIVIDEND INCREASE
• Neutral Sentiment: Recent commentary notes the stock surged sharply on heavy volume, but some analysts caution that earnings estimate revisions may limit further upside in the near term. Penske (PAG) Soars 9.9%: Is Further Upside Left in the Stock?
• Negative Sentiment: Some pre-deal coverage suggests the company may be facing weaker near-term earnings expectations, which could temper enthusiasm if the buyout process stalls or fails. Analysts Estimate Penske Automotive (PAG) to Report a Decline in Earnings: What to Look Out for

About Penske Automotive Group

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.