Penske Automotive Group (NYSE:PAG) Trading Up 11.4% on Better-Than-Expected Earnings

Penske Automotive Group, Inc. (NYSE:PAG) was up 11.4% on Wednesday after the company announced better than expected quarterly earnings. The stock traded as high as $178.16 and last traded at $179.9350. Approximately 89,224 shares were traded during trading, a decline of 69% from the average daily volume of 286,546 shares. The stock had previously closed at $161.55.

The company reported $3.05 earnings per share for the quarter, beating analysts’ consensus estimates of $2.91 by $0.14. Penske Automotive Group had a return on equity of 15.13% and a net margin of 2.85%.The company had revenue of $7.86 billion for the quarter, compared to analysts’ expectations of $7.71 billion. During the same period last year, the firm earned $3.66 earnings per share. Penske Automotive Group’s quarterly revenue was down 1.1% on a year-over-year basis.

Penske Automotive Group Increases Dividend

The firm 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. This is a boost 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%. The ex-dividend date was Wednesday, February 25th. Penske Automotive Group’s payout ratio is 41.79%.

Analyst Upgrades and Downgrades

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

Institutional Trading of Penske Automotive Group

Hedge funds and other institutional investors have recently made changes to their positions in the company. Navalign LLC acquired a new stake in shares of Penske Automotive Group during the fourth quarter worth about $26,000. Rothschild Investment LLC increased its position in shares of Penske Automotive Group by 935.3% during the third quarter. Rothschild Investment LLC now owns 176 shares of the company’s stock worth $31,000 after purchasing an additional 159 shares in the last quarter. International Assets Investment Management LLC acquired a new stake in shares of Penske Automotive Group during the fourth quarter worth about $30,000. Root Financial Partners LLC acquired a new stake in shares of Penske Automotive Group during the third quarter worth about $33,000. Finally, Acadian Asset Management LLC acquired a new stake in shares of Penske Automotive Group during the first quarter worth about $42,000. Institutional investors and hedge funds own 77.08% of the company’s stock.

Penske Automotive Group Price Performance

The firm has a market cap of $11.29 billion, a price-to-earnings ratio of 12.82, a PEG ratio of 2.25 and a beta of 0.87. The stock has a 50-day moving average price of $154.48 and a 200 day moving average price of $160.44. The company has a debt-to-equity ratio of 0.39, a current ratio of 0.96 and a quick ratio of 0.22.

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.