Penske Automotive Group, Inc. (NYSE:PAG) Announces Dividend Increase – $1.26 Per Share

Penske Automotive Group, Inc. (NYSE:PAG) announced a quarterly dividend on Wednesday, May 14th, RTT News reports. Shareholders of record on Tuesday, May 27th will be paid a dividend of 1.26 per share on Tuesday, June 3rd. This represents a $5.04 annualized dividend and a yield of 3.04%. The ex-dividend date of this dividend is Tuesday, May 27th. This is a 3.3% increase from Penske Automotive Group’s previous quarterly dividend of $1.22.

Penske Automotive Group has raised its dividend by an average of 32.0% annually over the last three years and has increased its dividend annually for the last 6 consecutive years. Penske Automotive Group has a dividend payout ratio of 33.9% indicating that its dividend is sufficiently covered by earnings. Equities analysts expect Penske Automotive Group to earn $14.38 per share next year, which means the company should continue to be able to cover its $4.88 annual dividend with an expected future payout ratio of 33.9%.

Penske Automotive Group Stock Up 1.1%

Shares of PAG stock opened at $165.76 on Friday. Penske Automotive Group has a 12-month low of $134.05 and a 12-month high of $180.12. The company has a quick ratio of 0.20, a current ratio of 0.91 and a debt-to-equity ratio of 0.22. The firm has a fifty day moving average of $152.35 and a 200-day moving average of $158.54. The company has a market capitalization of $10.97 billion, a price-to-earnings ratio of 12.06 and a beta of 0.90.

Penske Automotive Group (NYSE:PAG) last released its quarterly earnings results on Wednesday, April 30th. The company reported $3.39 earnings per share (EPS) for the quarter, beating the consensus estimate of $3.27 by $0.12. The firm had revenue of $7.60 billion for the quarter, compared to the consensus estimate of $7.68 billion. Penske Automotive Group had a return on equity of 18.05% and a net margin of 3.02%. The company’s revenue for the quarter was up 2.1% on a year-over-year basis. During the same quarter last year, the business posted $3.21 EPS. As a group, equities research analysts predict that Penske Automotive Group will post 13.86 earnings per share for the current fiscal year.

Insider Buying and Selling at Penske Automotive Group

In related news, Director John Barr sold 1,529 shares of the stock in a transaction on Thursday, March 13th. The stock was sold at an average price of $155.45, for a total value of $237,683.05. The transaction was disclosed in a legal filing with the SEC, which is available at the SEC website. Corporate insiders own 51.70% of the company’s stock.

Penske Automotive Group announced that its board has approved a stock buyback plan on Wednesday, May 14th that permits the company to repurchase $250.00 million in outstanding shares. This repurchase authorization permits the company to buy up to 2.3% of its stock through open market purchases. Stock repurchase plans are often a sign that the company’s board believes its stock is undervalued.

Analysts Set New Price Targets

PAG has been the subject of several research reports. Citigroup initiated coverage on shares of Penske Automotive Group in a research note on Wednesday, April 23rd. They set a “buy” rating and a $185.00 price target for the company. StockNews.com raised shares of Penske Automotive Group from a “hold” rating to a “buy” rating in a research report on Wednesday, April 23rd. JPMorgan Chase & Co. cut their price target on shares of Penske Automotive Group from $165.00 to $140.00 and set an “underweight” rating on the stock in a research report on Thursday, March 27th. Finally, Stephens restated an “equal weight” rating and issued a $140.00 price objective on shares of Penske Automotive Group in a report on Monday, May 5th. One equities research analyst has rated the stock with a sell rating, one has issued a hold rating and five have issued a buy rating to the company’s stock. Based on data from MarketBeat, Penske Automotive Group has a consensus rating of “Moderate Buy” and a consensus target price of $165.00.

About Penske Automotive Group

Penske Automotive Group, Inc, a diversified transportation services company, operates automotive and commercial truck dealerships worldwide. The company operates through four segments: Retail Automotive, Retail Commercial Truck, Other, and Non-Automotive Investments. It operates dealerships under franchise agreements with various automotive manufacturers and distributors.