Penske Automotive Group (PAG) Rating Increased to Buy at Zacks Investment Research

Zacks Investment Research upgraded shares of Penske Automotive Group (NYSE:PAG) from a hold rating to a buy rating in a research report released on Tuesday. They currently have $57.00 target price on the stock.

According to Zacks, “Penske Automotive completed the acquisition of The Car People, which is expected to earn annualized revenues of roughly $300 million. Prior to this in 2017, it acquired two other used vehicle retailers in the United Kingdom, namely- CarShop and CarSense. These acquisitions will develop the company’s used car business segment and reinforce its position in the country. The company is also poised to benefit from expanding dealership networks. Penske Automotive also enjoys a favorable automotive retail environment in the United States and the United Kingdom markets. Also in the last three months, the company’s shares have outperformed the industry it belongs to.”

Other equities analysts have also issued research reports about the company. ValuEngine upgraded Penske Automotive Group from a hold rating to a buy rating in a research note on Monday, October 2nd. Berenberg Bank assumed coverage on Penske Automotive Group in a research note on Wednesday, October 4th. They issued a hold rating and a $52.00 target price on the stock. Northcoast Research assumed coverage on Penske Automotive Group in a research note on Thursday, September 28th. They issued a buy rating and a $56.00 target price on the stock. KeyCorp reiterated a hold rating on shares of Penske Automotive Group in a research note on Wednesday, October 4th. Finally, Gabelli lifted their target price on Penske Automotive Group from $68.00 to $69.00 and gave the company a buy rating in a research note on Thursday, October 26th. One analyst has rated the stock with a sell rating, three have issued a hold rating and six have issued a buy rating to the company. The company presently has an average rating of Buy and a consensus target price of $56.14.

Penske Automotive Group (PAG) traded up $1.05 during mid-day trading on Tuesday, hitting $53.31. The company had a trading volume of 580,003 shares, compared to its average volume of 374,699. Penske Automotive Group has a 12-month low of $38.33 and a 12-month high of $55.26. The company has a debt-to-equity ratio of 1.03, a current ratio of 1.04 and a quick ratio of 0.23. The company has a market capitalization of $4,482.24, a P/E ratio of 12.30, a P/E/G ratio of 1.52 and a beta of 1.46.

Penske Automotive Group (NYSE:PAG) last posted its earnings results on Wednesday, October 25th. The company reported $1.10 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.08 by $0.02. Penske Automotive Group had a return on equity of 18.68% and a net margin of 1.75%. The company had revenue of $5.52 billion for the quarter, compared to analyst estimates of $5.33 billion. During the same quarter in the previous year, the firm earned $1.03 earnings per share. The firm’s quarterly revenue was up 7.2% compared to the same quarter last year. analysts predict that Penske Automotive Group will post 4.31 EPS for the current year.

Penske Automotive Group announced that its Board of Directors has authorized a share buyback program on Wednesday, October 25th that allows the company to buyback $200.00 million in outstanding shares. This buyback authorization allows the company to reacquire shares of its stock through open market purchases. Stock buyback programs are typically a sign that the company’s board believes its shares are undervalued.

In other news, CFO John D. Jr. Carlson sold 7,000 shares of the business’s stock in a transaction dated Monday, November 13th. The stock was sold at an average price of $46.20, for a total transaction of $323,400.00. Following the sale, the chief financial officer now owns 24,844 shares in the company, valued at $1,147,792.80. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, major shareholder Corp Penske bought 1,103,996 shares of the firm’s stock in a transaction that occurred on Friday, October 20th. The shares were purchased at an average cost of $45.29 per share, with a total value of $49,999,978.84. Following the acquisition, the insider now directly owns 11,564,576 shares of the company’s stock, valued at $523,759,647.04. The disclosure for this purchase can be found here. 40.70% of the stock is currently owned by insiders.

Several institutional investors have recently added to or reduced their stakes in the stock. Vanguard Group Inc. lifted its holdings in shares of Penske Automotive Group by 1.9% during the second quarter. Vanguard Group Inc. now owns 2,783,279 shares of the company’s stock worth $122,214,000 after purchasing an additional 51,334 shares during the period. Burgundy Asset Management Ltd. lifted its holdings in shares of Penske Automotive Group by 2.7% during the third quarter. Burgundy Asset Management Ltd. now owns 2,134,504 shares of the company’s stock worth $101,538,000 after purchasing an additional 56,240 shares during the period. Fiduciary Management Inc. WI lifted its holdings in shares of Penske Automotive Group by 26.9% during the third quarter. Fiduciary Management Inc. WI now owns 1,849,553 shares of the company’s stock worth $87,983,000 after purchasing an additional 391,808 shares during the period. State Street Corp lifted its holdings in shares of Penske Automotive Group by 1.5% during the second quarter. State Street Corp now owns 621,001 shares of the company’s stock worth $27,266,000 after purchasing an additional 9,240 shares during the period. Finally, Victory Capital Management Inc. lifted its holdings in shares of Penske Automotive Group by 17.9% during the third quarter. Victory Capital Management Inc. now owns 565,780 shares of the company’s stock worth $26,914,000 after purchasing an additional 85,770 shares during the period. 41.40% of the stock is owned by hedge funds and other institutional investors.

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Penske Automotive Group Company Profile

Penske Automotive Group, Inc is an international transportation services company. The Company operates automotive and commercial truck dealerships principally in the United States, Canada and Western Europe, and distributes commercial vehicles, diesel engines, gas engines, power systems, and related parts and services principally in Australia and New Zealand.

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