Penske Automotive Group, Inc. (NYSE:PAG – Get Rating) declared a quarterly dividend on Friday, July 22, reports The Wall Street Journal. Shareholders of record on Wednesday August 10 will receive a dividend of 0.53 per share on Thursday September 1. This represents an annualized dividend of $2.12 and a yield of 1.93%. The ex-dividend date is Tuesday, August 9. This is a boost from Penske Automotive Group’s previous quarterly dividend of $0.50.
Penske Automotive Group has increased its dividend by an average of 7.8% per year for the past three years and has increased its dividend annually for the past 3 consecutive years. Penske Automotive Group has a payout ratio of 13.0%, indicating that its dividend is sufficiently covered by earnings. Stock analysts expect Penske Automotive Group to earn $15.02 per share next year, meaning the company should continue to be able to cover its $2.00 annual dividend with a ratio of expected future payout of 13.3%.
Penske Automotive Group Stock up 0.9%
Shares of PAG rose $0.95 midday Friday, hitting $109.90. The stock had trading volume of 27,893 shares, compared to an average volume of 369,270. Penske Automotive Group has a 1-year low of $78.60 and a 1-year high of $123.60. The company’s fifty-day simple moving average is $110.98 and its two-hundred-day simple moving average is $104.59. The company has a market capitalization of $8.34 billion, a price-earnings ratio of 6.45 and a beta of 1.24. The company has a debt ratio of 0.33, a current ratio of 0.97 and a quick ratio of 0.26.
Penske Automotive Group (NYSE:PAG – Get Rating) last reported quarterly results on Wednesday, April 27. The company reported EPS of $4.76 for the quarter, beating the consensus estimate of $3.94 by $0.82. Penske Automotive Group achieved a net margin of 5.13% and a return on equity of 35.33%. The company posted revenue of $6.98 billion for the quarter, versus analyst estimates of $6.32 billion. During the same period last year, the company achieved EPS of $2.26. Penske Automotive Group’s revenue for the quarter increased 20.8% compared to the same quarter last year. Equity research analysts expect Penske Automotive Group to post earnings per share of 17.33 for the current year.
Hedge funds weigh on Penske Automotive Group
Several hedge funds have recently bought and sold shares of PAG. BNP Paribas Arbitrage SA increased its position in Penske Automotive Group shares by 66.5% in the first quarter. BNP Paribas Arbitrage SA now owns 49,288 shares of the company valued at $4,619,000 after purchasing an additional 19,682 shares during the period. Advisors Asset Management Inc. increased its position in Penske Automotive Group shares by 48.2% in the first quarter. Advisors Asset Management Inc. now owns 24,521 shares of the company valued at $2,298,000 after purchasing an additional 7,970 shares during the period. Beacon Pointe Advisors LLC purchased a new stake in shares of Penske Automotive Group in the first quarter valued at $246,000. Point72 Hong Kong Ltd bought a new stake in shares of Penske Automotive Group in the first quarter worth $526,000. Finally, the Royal Bank of Canada increased its position in shares of Penske Automotive Group by 8.7% in the first quarter. Royal Bank of Canada now owns 30,763 shares of the company valued at $2,882,000 after purchasing an additional 2,465 shares during the period. Hedge funds and other institutional investors own 50.13% of the company’s shares.
A Wall Street analyst gives his opinion
PAG has been the subject of a number of recent research reports. StockNews.com upgraded shares of Penske Automotive Group from a “buy” rating to a “strong buy” rating in a Thursday, April 7 research note. Morgan Stanley lowered its price target on shares of Penske Automotive Group from $95.00 to $93.00 and set an “underweight” rating on the stock in a report Thursday, July 14. Finally, JPMorgan Chase & Co. lowered its price target on Penske Automotive Group shares from $120.00 to $105.00 and set a “neutral” rating on the stock in a Thursday, April 7 report. One equity research analyst rated the stock with a sell rating, one issued a hold rating, two issued a buy rating and one issued a strong buy rating for the stock. Based on data from MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and a consensus price target of $110.25.
About Penske Automotive Group
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Penske Automotive Group, Inc., a diversified transportation services company, operates automobile and commercial truck dealerships. The Company operates through four segments: Automotive Retail, Commercial Truck Retail, Other and Non-Automotive Investments. It operates dealerships under franchise agreements with various automobile manufacturers and distributors.
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