Zacks Investment Research Upgrades Penske Automotive Group (PAG) to Buy

Penske Automotive Group (NYSE:PAG) was upgraded by Zacks Investment Research from a “hold” rating to a “buy” rating in a note issued to investors on Tuesday, January 9th. The brokerage currently has a $57.00 target price on the stock. Zacks Investment Research‘s price objective points to a potential upside of 7.22% from the company’s current price.

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.”

PAG has been the topic of a number of other research reports. KeyCorp reiterated a “hold” rating on shares of Penske Automotive Group in a research note on Wednesday, October 4th. Northcoast Research assumed coverage on Penske Automotive Group in a research note on Thursday, September 28th. They set a “buy” rating and a $56.00 price objective on the stock. Berenberg Bank assumed coverage on Penske Automotive Group in a research note on Wednesday, October 4th. They set a “hold” rating and a $52.00 price objective on the stock. ValuEngine upgraded Penske Automotive Group from a “hold” rating to a “buy” rating in a research note on Friday, December 1st. Finally, Gabelli raised their price objective on Penske Automotive Group from $68.00 to $69.00 and gave the stock a “buy” rating in a research note on Thursday, October 26th. One investment analyst has rated the stock with a sell rating, three have given a hold rating and six have given a buy rating to the company. The company presently has an average rating of “Buy” and an average target price of $56.14.

Shares of Penske Automotive Group (NYSE:PAG) traded up $1.35 during midday trading on Tuesday, hitting $53.16. The stock had a trading volume of 353,992 shares, compared to its average volume of 389,340. The company has a market capitalization of $4,443.65, a price-to-earnings ratio of 12.48, a P/E/G ratio of 1.51 and a beta of 1.46. The company has a debt-to-equity ratio of 1.03, a quick ratio of 0.23 and a current ratio of 1.04. Penske Automotive Group has a one year low of $38.33 and a one year high of $55.26.

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

Penske Automotive Group declared that its board has approved a share buyback program on Wednesday, October 25th that authorizes the company to buyback $200.00 million in outstanding shares. This buyback authorization authorizes the company to reacquire shares of its stock through open market purchases. Stock buyback programs are often an indication that the company’s board of directors believes its shares are undervalued.

In other Penske Automotive Group news, EVP Shane M. Spradlin sold 3,188 shares of the firm’s stock in a transaction on Monday, November 6th. The stock was sold at an average price of $47.41, for a total value of $151,143.08. The sale was disclosed in a filing with the SEC, which is available at this link. Also, CFO John D. Jr. Carlson sold 7,000 shares of the firm’s stock in a transaction on Monday, November 13th. The shares were sold at an average price of $46.20, for a total value of $323,400.00. Following the completion of the sale, the chief financial officer now directly owns 24,844 shares in the company, valued at approximately $1,147,792.80. The disclosure for this sale can be found here. 40.70% of the stock is owned by company insiders.

Several hedge funds have recently modified their holdings of the business. State of Alaska Department of Revenue acquired a new stake in shares of Penske Automotive Group in the 4th quarter valued at $129,000. Fox Run Management L.L.C. boosted its holdings in shares of Penske Automotive Group by 72.6% in the 4th quarter. Fox Run Management L.L.C. now owns 9,148 shares of the company’s stock valued at $438,000 after purchasing an additional 3,848 shares in the last quarter. Schwab Charles Investment Management Inc. boosted its holdings in shares of Penske Automotive Group by 8.5% in the 4th quarter. Schwab Charles Investment Management Inc. now owns 349,027 shares of the company’s stock valued at $16,701,000 after purchasing an additional 27,207 shares in the last quarter. Burgundy Asset Management Ltd. boosted its holdings in shares of Penske Automotive Group by 2.7% in the 3rd quarter. Burgundy Asset Management Ltd. now owns 2,134,504 shares of the company’s stock valued at $101,538,000 after purchasing an additional 56,240 shares in the last quarter. Finally, GSA Capital Partners LLP boosted its holdings in shares of Penske Automotive Group by 211.2% in the 3rd quarter. GSA Capital Partners LLP now owns 28,342 shares of the company’s stock valued at $1,348,000 after purchasing an additional 19,235 shares in the last quarter. 41.40% of the stock is currently owned by hedge funds and other institutional investors.

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About Penske Automotive Group

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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