Penske Automotive Group (NYSE:PAG) Sets New 1-Year High – Still a Buy?

Penske Automotive Group, Inc. (NYSE:PAG) hit a new 52-week high during mid-day trading on Wednesday . The stock traded as high as $199.14 and last traded at $199.4350, with a volume of 31861 shares trading hands. The stock had previously closed at $193.55.

Analysts Set New Price Targets

A number of equities research analysts have recently weighed in on the company. Stephens boosted their price target on Penske Automotive Group from $155.00 to $160.00 and gave the company an “equal weight” rating in a report on Monday, May 4th. Benchmark reiterated a “buy” rating on shares of Penske Automotive Group in a research note on Friday. Bank of America increased their target price on shares of Penske Automotive Group from $200.00 to $238.00 and gave the stock a “buy” rating in a report on Thursday, July 9th. UBS Group set a $190.00 price target on shares of Penske Automotive Group in a report on Friday. Finally, 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. Seven investment analysts have rated the stock with a Buy rating and three have issued a Hold rating to the company. Based on data from MarketBeat, the company currently has an average rating of “Moderate Buy” and an average target price of $194.62.

Penske Automotive Group Stock Performance

The company has a debt-to-equity ratio of 0.39, a quick ratio of 0.22 and a current ratio of 0.96. The stock has a 50 day moving average of $174.95 and a 200 day moving average of $164.46. The stock has a market capitalization of $13.14 billion, a P/E ratio of 14.94, a P/E/G ratio of 2.50 and a beta of 0.87.

Penske Automotive Group (NYSE:PAG) last announced its quarterly earnings results on Wednesday, April 29th. The company reported $3.05 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.91 by $0.14. The company had revenue of $7.86 billion during the quarter, compared to the consensus estimate of $7.71 billion. Penske Automotive Group had a net margin of 2.85% and a return on equity of 15.13%. The company’s revenue for the quarter was down 1.1% compared to the same quarter last year. During the same quarter in the previous year, the company posted $3.66 earnings per share. Equities analysts predict that Penske Automotive Group, Inc. will post 13.45 EPS for the current year.

Penske Automotive Group Increases Dividend

The firm also recently declared a quarterly dividend, which was paid on Wednesday, June 3rd. Stockholders of record on Tuesday, May 26th were issued a dividend of $1.42 per share. This represents a $5.68 dividend on an annualized basis and a dividend yield of 2.8%. This is a boost from Penske Automotive Group’s previous quarterly dividend of $1.40. The ex-dividend date of this dividend was Tuesday, May 26th. Penske Automotive Group’s dividend payout ratio is presently 42.39%.

Insider Buying and Selling

In related news, CFO Michelle Hulgrave sold 1,500 shares of the stock in a transaction that occurred on Tuesday, June 2nd. The stock was sold at an average price of $171.80, for a total value of $257,700.00. Following the completion of the transaction, the chief financial officer directly owned 17,596 shares of the company’s stock, valued at $3,022,992.80. This represents a 7.86% decrease in their position. The sale was disclosed in a filing with the SEC, which is available through the SEC website. Also, Director Greg C. Smith sold 1,488 shares of the firm’s stock in a transaction that occurred on Monday, May 18th. The shares were sold at an average price of $160.02, for a total value of $238,109.76. The disclosure for this sale is available in the SEC filing. Corporate insiders own 52.90% of the company’s stock.

Institutional Inflows and Outflows

A number of large investors have recently modified their holdings of PAG. Navalign LLC acquired a new stake in Penske Automotive Group in the fourth quarter worth about $26,000. International Assets Investment Management LLC bought a new stake in shares of Penske Automotive Group during the 4th quarter worth about $30,000. Rothschild Investment LLC raised its position in shares of Penske Automotive Group by 37.5% during the 4th quarter. Rothschild Investment LLC now owns 242 shares of the company’s stock worth $38,000 after buying an additional 66 shares in the last quarter. Acadian Asset Management LLC acquired a new stake in shares of Penske Automotive Group in the 1st quarter worth approximately $42,000. Finally, Versant Capital Management Inc lifted its stake in shares of Penske Automotive Group by 179.0% in the 2nd quarter. Versant Capital Management Inc now owns 279 shares of the company’s stock worth $50,000 after acquiring an additional 179 shares during the period. 77.08% of the stock is owned by institutional investors and hedge funds.

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.