Penske Automotive Group (NYSE:PAG) Rating Lowered to Hold at Zacks Investment Research

Penske Automotive Group (NYSE:PAG) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a report released on Tuesday, February 6th.

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. Also, to enhance shareholders’ value, it has been increasing cash dividends in each sequential quarter. However, fluctuating foreign exchange rates, competition among peers and a large merchandise inventory are few concerns for the company. Also, in the last six months, Penske Automotive’s shares have underperformed the industry it belongs to.”

A number of other research analysts have also recently issued reports on the company. Gabelli raised their price objective on Penske Automotive Group from $68.00 to $69.00 and gave the company a “buy” rating in a research note on Thursday, October 26th. ValuEngine raised Penske Automotive Group from a “hold” rating to a “buy” rating in a research note on Friday, December 1st. One investment analyst has rated the stock with a sell rating, three have given a hold rating, five have given a buy rating and one has issued a strong buy rating to the stock. Penske Automotive Group has a consensus rating of “Buy” and an average price target of $55.57.

Penske Automotive Group (NYSE:PAG) opened at $48.31 on Tuesday. The company has a market capitalization of $4,122.87, a price-to-earnings ratio of 6.77, a P/E/G ratio of 1.22 and a beta of 1.46. The company has a debt-to-equity ratio of 0.86, a current ratio of 1.01 and a quick ratio of 0.22. Penske Automotive Group has a 12 month low of $38.33 and a 12 month high of $54.83.

Penske Automotive Group (NYSE:PAG) last released its earnings results on Thursday, February 8th. The company reported $1.01 EPS for the quarter, beating the Zacks’ consensus estimate of $1.00 by $0.01. Penske Automotive Group had a return on equity of 17.67% and a net margin of 2.87%. The business had revenue of $5.40 billion for the quarter, compared to analysts’ expectations of $5.27 billion. During the same quarter in the prior year, the firm earned $0.91 earnings per share. The firm’s revenue was up 10.4% on a year-over-year basis. equities analysts forecast that Penske Automotive Group will post 4.96 EPS for the current year.

Penske Automotive Group announced that its board has initiated a stock buyback program on Wednesday, October 25th that allows the company to repurchase $200.00 million in outstanding shares. This repurchase authorization allows the company to purchase shares of its stock through open market purchases. Shares repurchase programs are usually a sign that the company’s board of directors believes its shares are undervalued.

Hedge funds and other institutional investors have recently bought and sold shares of the stock. The Manufacturers Life Insurance Company grew its stake in shares of Penske Automotive Group by 7.5% in the second quarter. The Manufacturers Life Insurance Company now owns 2,499 shares of the company’s stock worth $110,000 after purchasing an additional 175 shares during the last quarter. State of Alaska Department of Revenue purchased a new stake in Penske Automotive Group in the fourth quarter worth about $129,000. Commonwealth Equity Services Inc purchased a new stake in Penske Automotive Group in the third quarter worth about $199,000. Jane Street Group LLC purchased a new stake in Penske Automotive Group in the third quarter worth about $201,000. Finally, Stephens Inc. AR purchased a new stake in Penske Automotive Group in the third quarter worth about $230,000. 41.71% of the stock is currently owned by institutional investors.

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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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