Citigroup Downgrades Penske Automotive Group (NYSE:PAG) to Neutral

Penske Automotive Group (NYSE:PAG) was downgraded by Citigroup from a “buy” rating to a “neutral” rating in a research note issued to investors on Thursday, Marketbeat Ratings reports. They currently have a $210.00 price objective on the stock, up from their previous price objective of $199.00. Citigroup’s price objective indicates a potential downside of 3.48% from the company’s current price.

Several other research firms also recently commented on PAG. Barclays boosted their price objective on Penske Automotive Group from $190.00 to $220.00 and gave the company an “overweight” rating in a report on Wednesday, July 15th. Morgan Stanley restated an “overweight” rating and set a $190.00 price target on shares of Penske Automotive Group in a research note on Thursday, May 7th. Stephens upped their price objective on shares of Penske Automotive Group from $155.00 to $160.00 and gave the stock an “equal weight” rating in a report on Monday, May 4th. Benchmark lowered shares of Penske Automotive Group from a “buy” rating to a “hold” rating in a research note on Wednesday. Finally, Bank of America lifted their price objective on shares of Penske Automotive Group from $200.00 to $238.00 and gave the company a “buy” rating in a report on Thursday, July 9th. Five investment analysts have rated the stock with a Buy rating and five have issued a Hold rating to the company’s stock. According to MarketBeat, Penske Automotive Group presently has an average rating of “Moderate Buy” and an average price target of $196.00.

Penske Automotive Group Stock Performance

Shares of PAG opened at $217.56 on Thursday. The company has a debt-to-equity ratio of 0.39, a current ratio of 0.96 and a quick ratio of 0.22. The stock has a 50-day moving average of $180.75 and a 200-day moving average of $166.89. The company has a market cap of $14.30 billion, a PE ratio of 16.24, a P/E/G ratio of 2.79 and a beta of 0.87. Penske Automotive Group has a one year low of $140.12 and a one year high of $219.09.

Penske Automotive Group (NYSE:PAG) last issued its earnings results on Wednesday, April 29th. The company reported $3.05 EPS for the quarter, beating analysts’ consensus estimates of $2.91 by $0.14. The business had revenue of $7.86 billion during the quarter, compared to analyst estimates of $7.71 billion. Penske Automotive Group had a return on equity of 15.13% and a net margin of 2.85%.The firm’s revenue was down 1.1% compared to the same quarter last year. During the same period in the previous year, the company posted $3.66 EPS. On average, equities research analysts predict that Penske Automotive Group will post 13.43 EPS for the current fiscal year.

Insiders Place Their Bets

In related news, CFO Michelle Hulgrave sold 1,500 shares of the stock in a transaction on Tuesday, June 2nd. The stock was sold at an average price of $171.80, for a total value of $257,700.00. Following the completion of the sale, the chief financial officer directly owned 17,596 shares of the company’s stock, valued at approximately $3,022,992.80. This represents a 7.86% decrease in their position. The transaction was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, Director Greg C. Smith sold 1,488 shares of the firm’s stock in a transaction on Monday, May 18th. The shares were sold at an average price of $160.02, for a total value of $238,109.76. The SEC filing for this sale provides additional information. Corporate insiders own 52.90% of the company’s stock.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Handelsbanken Fonder AB grew its holdings in shares of Penske Automotive Group by 1.7% in the second quarter. Handelsbanken Fonder AB now owns 6,016 shares of the company’s stock valued at $1,077,000 after acquiring an additional 100 shares in the last quarter. Hennion & Walsh Asset Management Inc. boosted its stake in Penske Automotive Group by 102.5% in the second quarter. Hennion & Walsh Asset Management Inc. now owns 6,426 shares of the company’s stock valued at $1,150,000 after acquiring an additional 3,253 shares during the last quarter. GAMMA Investing LLC grew its position in shares of Penske Automotive Group by 26.5% during the 2nd quarter. GAMMA Investing LLC now owns 429 shares of the company’s stock valued at $77,000 after acquiring an additional 90 shares during the period. Versant Capital Management Inc grew its position in shares of Penske Automotive Group by 179.0% during the 2nd quarter. Versant Capital Management Inc now owns 279 shares of the company’s stock valued at $50,000 after acquiring an additional 179 shares during the period. Finally, CX Institutional increased its stake in shares of Penske Automotive Group by 260.3% during the 2nd quarter. CX Institutional now owns 7,436 shares of the company’s stock worth $1,331,000 after purchasing an additional 5,372 shares during the last quarter. 77.08% of the stock is currently owned by hedge funds and other institutional investors.

Trending Headlines about Penske Automotive Group

Here are the key news stories impacting Penske Automotive Group this week:

• Positive Sentiment: Penske Automotive confirmed receipt of a take-private bid, and the board created a special committee to review the offer, increasing speculation that a buyout could be completed at a premium. Penske Automotive Group Confirms Receipt of Take-Private Bid from Penske Corp., Mitsui
• Positive Sentiment: Penske Automotive announced its 23rd consecutive quarterly dividend increase, lifting the payout to $1.44 per share, which signals financial strength and supports shareholder returns. PENSKE AUTOMOTIVE GROUP ANNOUNCES 23RD QUARTERLY DIVIDEND INCREASE

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.