Bank of America Raises Penske Automotive Group (NYSE:PAG) Price Target to $205.00

Penske Automotive Group (NYSE:PAG) had its price target upped by Bank of America from $190.00 to $205.00 in a research note issued to investors on Monday morning,Benzinga reports. Bank of America currently has a buy rating on the stock.

Other equities analysts have also issued reports about the stock. Wall Street Zen upgraded shares of Penske Automotive Group from a “hold” rating to a “buy” rating in a report on Wednesday, April 23rd. Stephens reissued an “equal weight” rating and issued a $140.00 price target on shares of Penske Automotive Group in a research note on Wednesday, June 11th. Citigroup boosted their target price on Penske Automotive Group from $185.00 to $195.00 and gave the stock a “buy” rating in a research report on Monday, May 19th. Finally, JPMorgan Chase & Co. lowered their price target on Penske Automotive Group from $165.00 to $140.00 and set an “underweight” rating for the company in a research note on Thursday, March 27th. One 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.com, the stock presently has a consensus rating of “Moderate Buy” and an average target price of $172.00.

Penske Automotive Group Trading Up 3.5%

Shares of PAG opened at $171.28 on Monday. The stock’s fifty day simple moving average is $159.87 and its 200-day simple moving average is $159.27. The firm has a market capitalization of $11.33 billion, a PE ratio of 12.46 and a beta of 0.91. 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.

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

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

Penske Automotive Group Increases Dividend

The firm also recently declared a quarterly dividend, which was paid on Tuesday, June 3rd. Shareholders of record on Tuesday, May 27th were issued a $1.26 dividend. This is an increase from Penske Automotive Group’s previous quarterly dividend of $1.22. This represents a $5.04 annualized dividend and a dividend yield of 2.94%. The ex-dividend date of this dividend was Tuesday, May 27th. Penske Automotive Group’s dividend payout ratio is 35.49%.

Insider Activity at Penske Automotive Group

In related news, CEO Roger S. Penske sold 77,357 shares of the firm’s stock in a transaction on Tuesday, June 3rd. The shares were sold at an average price of $161.37, for a total transaction of $12,483,099.09. Following the sale, the chief executive officer now directly owns 140,042 shares in the company, valued at $22,598,577.54. This trade represents a 35.58% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this hyperlink. Also, Director Greg C. Smith sold 1,529 shares of the company’s stock in a transaction on Tuesday, June 3rd. The stock was sold at an average price of $161.64, for a total transaction of $247,147.56. The disclosure for this sale can be found here. In the last three months, insiders sold 82,044 shares of company stock worth $13,257,948. 51.70% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Hedge funds have recently modified their holdings of the company. Whittier Trust Co. of Nevada Inc. acquired a new position in Penske Automotive Group during the 4th quarter worth approximately $40,000. Acadian Asset Management LLC acquired a new position in Penske Automotive Group during the first quarter worth $42,000. UMB Bank n.a. grew its position in Penske Automotive Group by 421.5% in the first quarter. UMB Bank n.a. now owns 339 shares of the company’s stock valued at $49,000 after purchasing an additional 274 shares in the last quarter. GAMMA Investing LLC increased its stake in Penske Automotive Group by 51.9% in the 1st quarter. GAMMA Investing LLC now owns 398 shares of the company’s stock valued at $57,000 after buying an additional 136 shares during the last quarter. Finally, Brooklyn Investment Group lifted its position in Penske Automotive Group by 353.0% during the 1st quarter. Brooklyn Investment Group now owns 453 shares of the company’s stock worth $65,000 after buying an additional 353 shares in the last quarter. 77.08% of the stock is currently owned by institutional investors.

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.