Penske Automotive Group (NYSE:PAG) Releases Earnings Results, Beats Expectations By $0.14 EPS

Penske Automotive Group (NYSE:PAG) released its quarterly earnings data on Wednesday. The company reported $3.05 earnings per share (EPS) for the quarter, topping the consensus estimate of $2.91 by $0.14, Zacks reports. The business had revenue of $7.86 billion during the quarter, compared to analysts’ expectations of $7.71 billion. Penske Automotive Group had a return on equity of 15.13% and a net margin of 2.85%.The business’s quarterly revenue was down 1.1% compared to the same quarter last year. During the same period in the prior year, the firm posted $3.66 EPS.

Here are the key takeaways from Penske Automotive Group’s conference call:

• Reported Q1 $7.9 billion revenue, GAAP net income of $235 million and EPS of $3.56 (adjusted EPS $3.05 after a $60M dealership gain and $13M disposal charges); management flagged difficult year‑over‑year comps and market headwinds.
• Service & parts delivered a Q1 record with same‑store revenue +4.6%, gross profit +5.7% and a 60bp gross margin improvement, strengthening recurring earnings.
• Expanded premium footprint with two Lexus acquisitions (plus prior Toyota/Lexus deals) expected to add ~$2 billion of annualized revenue, while returning capital via a $26M buyback and raising the dividend to $1.40 (21st consecutive increase).
• Penske Transportation Solutions equity income rose 24% as fleet right‑sizing, higher utilization and lower maintenance/interest costs offset a $26M decline in gain‑on‑sale; management highlighted a surge in demand with Class‑8 orders +91% and industry backlog +33%, which should boost H2 truck deliveries.
• International revenue +6% with Australia EBT +15%; the energy/off‑highway business has >AUD 600 million secured orders for 2026 and management believes the energy solutions segment can reach at least AUD 1 billion by 2030.

Penske Automotive Group Stock Down 1.8%

Shares of Penske Automotive Group stock traded down $3.15 during trading on Friday, reaching $168.38. The stock had a trading volume of 248,511 shares, compared to its average volume of 296,055. Penske Automotive Group has a 52 week low of $140.12 and a 52 week high of $189.51. The company has a current ratio of 0.96, a quick ratio of 0.22 and a debt-to-equity ratio of 0.39. The stock has a fifty day moving average price of $154.48 and a two-hundred day moving average price of $160.44. The company has a market capitalization of $11.07 billion, a price-to-earnings ratio of 12.57, a P/E/G ratio of 2.25 and a beta of 0.87.

Penske Automotive Group Increases Dividend

The business also recently declared a quarterly dividend, which was paid on Thursday, March 5th. Shareholders of record on Wednesday, February 25th were paid a $1.40 dividend. The ex-dividend date of this dividend was Wednesday, February 25th. This is an increase from Penske Automotive Group’s previous quarterly dividend of $1.38. This represents a $5.60 dividend on an annualized basis and a yield of 3.3%. Penske Automotive Group’s payout ratio is presently 41.79%.

Analysts Set New Price Targets

PAG has been the subject of a number of recent analyst reports. Weiss Ratings downgraded shares of Penske Automotive Group from a “buy (b-)” rating to a “hold (c+)” rating in a report on Monday, March 16th. Barclays decreased their target price on Penske Automotive Group from $195.00 to $190.00 and set an “overweight” rating for the company in a research report on Tuesday, April 7th. JPMorgan Chase & Co. lowered their price target on shares of Penske Automotive Group from $170.00 to $165.00 and set a “neutral” rating for the company in a report on Friday, April 17th. Finally, Citigroup cut their price objective on Penske Automotive Group from $200.00 to $193.00 and set a “buy” rating on the stock in a research note on Wednesday, April 8th. Six investment analysts have rated the stock with a Buy rating and three have given a Hold rating to the company. According to MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and a consensus target price of $180.43.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently modified their holdings of the company. Goldman Sachs Group Inc. boosted its position in shares of Penske Automotive Group by 28.4% in the first quarter. Goldman Sachs Group Inc. now owns 380,267 shares of the company’s stock valued at $54,751,000 after acquiring an additional 84,045 shares during the period. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC increased its stake in shares of Penske Automotive Group by 4.7% in the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 68,884 shares of the company’s stock valued at $9,918,000 after buying an additional 3,100 shares during the period. Acadian Asset Management LLC bought a new position in shares of Penske Automotive Group during the first quarter worth about $42,000. EverSource Wealth Advisors LLC boosted its holdings in Penske Automotive Group by 506.9% in the second quarter. EverSource Wealth Advisors LLC now owns 880 shares of the company’s stock valued at $151,000 after acquiring an additional 735 shares during the last quarter. Finally, Brown Advisory Inc. boosted its stake in shares of Penske Automotive Group by 47.0% in the 2nd quarter. Brown Advisory Inc. now owns 3,108 shares of the company’s stock valued at $534,000 after purchasing an additional 994 shares during the last quarter. Institutional investors own 77.08% of the company’s stock.

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.