Penske Automotive Group (NYSE:PAG) was upgraded by Zacks Investment Research from a “hold” rating to a “buy” rating in a research report issued on Tuesday, January 9th. The brokerage currently has a $57.00 price target on the stock. Zacks Investment Research‘s target price would indicate a potential upside of 8.86% 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.”
A number of other brokerages have also recently commented on PAG. ValuEngine raised shares of Penske Automotive Group from a “hold” rating to a “buy” rating in a research note on Friday, December 1st. Gabelli increased their target price on Penske Automotive Group from $68.00 to $69.00 and gave the company a “buy” rating in a research report on Thursday, October 26th. KeyCorp reiterated a “hold” rating on shares of Penske Automotive Group in a research report on Wednesday, October 4th. Berenberg Bank initiated coverage on Penske Automotive Group in a research report on Wednesday, October 4th. They set a “hold” rating and a $52.00 target price on the stock. Finally, Northcoast Research initiated coverage on Penske Automotive Group in a research report on Thursday, September 28th. They set a “buy” rating and a $56.00 target price on the stock. One research analyst has rated the stock with a sell rating, three have assigned a hold rating and six have issued a buy rating to the stock. The company presently has a consensus rating of “Buy” and a consensus target price of $56.14.
Penske Automotive Group (NYSE:PAG) last issued its quarterly earnings data on Wednesday, October 25th. The company reported $1.10 EPS for the quarter, topping analysts’ consensus estimates of $1.08 by $0.02. The business had revenue of $5.52 billion for the quarter, compared to analysts’ expectations of $5.33 billion. Penske Automotive Group had a net margin of 1.75% and a return on equity of 18.68%. The business’s revenue was up 7.2% on a year-over-year basis. During the same quarter last year, the company earned $1.03 EPS. research analysts anticipate that Penske Automotive Group will post 4.31 EPS for the current year.
Penske Automotive Group declared that its Board of Directors has authorized a share repurchase plan on Wednesday, October 25th that permits the company to repurchase $200.00 million in outstanding shares. This repurchase authorization permits the company to reacquire shares of its stock through open market purchases. Stock repurchase plans are often a sign that the company’s board believes its stock is undervalued.
In other Penske Automotive Group news, CFO John D. Jr. Carlson sold 7,000 shares of the firm’s stock in a transaction on Monday, November 13th. The stock was 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 of the company’s stock, valued at approximately $1,147,792.80. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, major shareholder Corp Penske acquired 1,103,996 shares of the business’s stock in a transaction that occurred on Friday, October 20th. The shares were acquired at an average cost of $45.29 per share, with a total value of $49,999,978.84. Following the completion of the transaction, the insider now directly owns 11,564,576 shares in the company, valued at approximately $523,759,647.04. The disclosure for this purchase can be found here. Company insiders own 40.70% of the company’s stock.
Several large investors have recently modified their holdings of the stock. The Manufacturers Life Insurance Company grew its position in Penske Automotive Group by 7.5% in the 2nd quarter. The Manufacturers Life Insurance Company now owns 2,499 shares of the company’s stock valued at $110,000 after acquiring an additional 175 shares in the last quarter. Commonwealth Equity Services Inc acquired a new position in Penske Automotive Group in the 3rd quarter valued at about $199,000. Jane Street Group LLC acquired a new position in Penske Automotive Group in the 3rd quarter valued at about $201,000. Oppenheimer & Co. Inc. acquired a new position in Penske Automotive Group in the 2nd quarter valued at about $206,000. Finally, Stephens Inc. AR acquired a new position in Penske Automotive Group in the 3rd quarter valued at about $230,000. 41.40% of the stock is owned by hedge funds and other institutional investors.
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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