Penske Automotive Group (NYSE:PAG) Trading Up 6% – Still a Buy?

Shares of Penske Automotive Group, Inc. (NYSE:PAG) rose 6% during mid-day trading on Wednesday . The stock traded as high as $175.02 and last traded at $174.31. Approximately 61,029 shares were traded during trading, a decline of 75% from the average daily volume of 247,601 shares. The stock had previously closed at $164.40.

Trending Headlines about Penske Automotive Group

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

• Positive Sentiment: Board raised the quarterly cash dividend to $1.40 per share and continued buybacks (1,178,411 shares repurchased in 2025, ~1.8% of shares outstanding) — supports shareholder returns and helps explain investor buying interest. PENSKE AUTOMOTIVE GROUP REPORTS FOURTH QUARTER AND FULL YEAR 2025 RESULTS
• Positive Sentiment: Operational positives: record Q4 and full-year retail automotive service & parts revenue, same-store service & parts revenue up ~5%, and continued strength in per-unit gross for new, used and F&I — points to resilience in higher-margin parts & service. PENSKE AUTOMOTIVE GROUP REPORTS FOURTH QUARTER AND FULL YEAR 2025 RESULTS
• Neutral Sentiment: Top-line vs. expectations: revenue of $7.77B slightly topped consensus (~$7.62B) but was down ~3.8% year-over-year — mixed signal for growth but confirms scale of operations. View Press Release / Slide Deck
• Neutral Sentiment: Analyst positioning: consensus remains constructive (consensus rating around “Moderate Buy”) — suggests many analysts view dividend/buybacks and parts/service strength as offsetting near-term earnings softness. Penske Automotive Group Receives Consensus Rating
• Negative Sentiment: Earnings miss: Q4 EPS of $2.91 missed consensus (Zacks ~$3.19; broader consensus ~$3.30) and declined from $3.54 a year ago — the EPS shortfall is a key reason for near-term investor caution. Penske Automotive (PAG) Misses Q4 Earnings Estimates
• Negative Sentiment: Profitability pressure: net margin (~3.1%) and year-over-year EPS decline highlight margin compression vs. prior year — a risk to near-term earnings visibility. Penske (PAG) Reports Q4 Earnings: What Key Metrics Have to Say

Analysts Set New Price Targets

PAG has been the subject of a number of research reports. Barclays dropped their price objective on Penske Automotive Group from $195.00 to $190.00 and set an “overweight” rating for the company in a research note on Wednesday, January 21st. JPMorgan Chase & Co. dropped their price target on shares of Penske Automotive Group from $180.00 to $175.00 and set a “neutral” rating on the stock in a research note on Wednesday, November 5th. Deutsche Bank Aktiengesellschaft restated a “buy” rating on shares of Penske Automotive Group in a research report on Monday, December 8th. Weiss Ratings reaffirmed a “buy (b)” rating on shares of Penske Automotive Group in a research report on Friday, October 31st. Finally, Bank of America began coverage on Penske Automotive Group in a research report on Tuesday, December 9th. They set a “buy” rating and a $195.00 target price on the stock. Seven equities research analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the company’s stock. Based on data from MarketBeat, the company has an average rating of “Moderate Buy” and an average price target of $183.71.

Penske Automotive Group Stock Performance

The company has a quick ratio of 0.21, a current ratio of 0.97 and a debt-to-equity ratio of 0.22. The stock has a fifty day moving average price of $163.65 and a 200-day moving average price of $168.83. The firm has a market cap of $11.43 billion, a price-to-earnings ratio of 12.21, a price-to-earnings-growth ratio of 2.29 and a beta of 0.92.

Penske Automotive Group (NYSE:PAG) last issued its quarterly earnings results on Wednesday, February 11th. The company reported $2.91 earnings per share for the quarter, missing the consensus estimate of $3.30 by ($0.39). The company had revenue of $7.77 billion for the quarter, compared to analyst estimates of $7.62 billion. Penske Automotive Group had a return on equity of 16.84% and a net margin of 3.08%.Penske Automotive Group’s revenue for the quarter was down 3.8% compared to the same quarter last year. During the same period in the prior year, the business earned $3.54 earnings per share. On average, analysts expect that Penske Automotive Group, Inc. will post 13.86 earnings per share for the current fiscal year.

Insider Buying and Selling at Penske Automotive Group

In other news, CFO Michelle Hulgrave sold 2,100 shares of the business’s stock in a transaction dated Monday, November 24th. The shares were sold at an average price of $160.17, for a total transaction of $336,357.00. Following the transaction, the chief financial officer directly owned 16,822 shares in the company, valued at $2,694,379.74. The trade was a 11.10% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available through this link. 52.40% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Penske Automotive Group

A number of institutional investors have recently added to or reduced their stakes in the business. Syon Capital LLC increased its position in Penske Automotive Group by 26.9% during the 4th quarter. Syon Capital LLC now owns 2,269 shares of the company’s stock worth $359,000 after purchasing an additional 481 shares during the period. State of Wyoming acquired a new position in Penske Automotive Group during the fourth quarter worth $67,000. Bank of New York Mellon Corp raised its position in Penske Automotive Group by 48.6% in the fourth quarter. Bank of New York Mellon Corp now owns 375,767 shares of the company’s stock worth $59,480,000 after acquiring an additional 122,895 shares in the last quarter. Goldman Sachs Group Inc. lifted its holdings in Penske Automotive Group by 1.6% in the fourth quarter. Goldman Sachs Group Inc. now owns 337,890 shares of the company’s stock valued at $53,485,000 after acquiring an additional 5,296 shares during the period. Finally, AXQ Capital LP acquired a new stake in Penske Automotive Group in the fourth quarter valued at $485,000. Hedge funds and other institutional investors own 77.08% of the company’s stock.

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.