Stock Repurchase Plan Announced by Penske Automotive Group (NYSE:PAG) Board

Penske Automotive Group (NYSE:PAG) declared that its board has approved a share repurchase program on Wednesday, May 14th, RTT News reports. The company plans to repurchase $250.00 million in outstanding shares. This repurchase authorization allows the company to purchase up to 2.3% of its stock through open market purchases. Stock repurchase programs are usually a sign that the company’s board believes its stock is undervalued.

Analyst Upgrades and Downgrades

A number of equities research analysts recently weighed in on PAG shares. JPMorgan Chase & Co. decreased their target price on Penske Automotive Group from $165.00 to $140.00 and set an “underweight” rating on the stock in a research report on Thursday, March 27th. Stephens reaffirmed an “equal weight” rating and set a $140.00 price objective on shares of Penske Automotive Group in a report on Monday, May 5th. Citigroup began coverage on Penske Automotive Group in a report on Wednesday, April 23rd. They set a “buy” rating and a $185.00 price objective on the stock. Finally, StockNews.com raised Penske Automotive Group from a “hold” rating to a “buy” rating in a report on Wednesday, April 23rd. One investment analyst has rated the stock with a sell rating, one has given a hold rating and five have issued a buy rating to the stock. According to data from MarketBeat, the company has a consensus rating of “Moderate Buy” and an average target price of $165.00.

Penske Automotive Group Stock Up 1.1%

NYSE PAG opened at $165.76 on Friday. The company has a market capitalization of $10.97 billion, a price-to-earnings ratio of 12.06 and a beta of 0.90. The company has a current ratio of 0.91, a quick ratio of 0.20 and a debt-to-equity ratio of 0.22. Penske Automotive Group has a 1-year low of $134.05 and a 1-year high of $180.12. The stock’s 50 day moving average is $152.35 and its two-hundred day moving average is $158.54.

Penske Automotive Group (NYSE:PAG) last announced its earnings results on Wednesday, April 30th. The company reported $3.39 EPS for the quarter, topping the consensus estimate of $3.27 by $0.12. The business had revenue of $7.60 billion for the quarter, compared to the consensus estimate of $7.68 billion. Penske Automotive Group had a return on equity of 18.05% and a net margin of 3.02%. Penske Automotive Group’s revenue was up 2.1% compared to the same quarter last year. During the same period in the previous year, the business earned $3.21 EPS. Equities analysts forecast that Penske Automotive Group will post 13.86 earnings per share for the current fiscal year.

Penske Automotive Group Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Tuesday, June 3rd. Stockholders of record on Tuesday, May 27th will be issued a $1.26 dividend. This is an increase from Penske Automotive Group’s previous quarterly dividend of $1.22. This represents a $5.04 annualized dividend and a dividend yield of 3.04%. The ex-dividend date of this dividend is Tuesday, May 27th. Penske Automotive Group’s payout ratio is presently 34.37%.

Insider Transactions at Penske Automotive Group

In related news, Director John Barr sold 1,529 shares of the business’s stock in a transaction that occurred on Thursday, March 13th. The shares were sold at an average price of $155.45, for a total value of $237,683.05. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. 51.70% of the stock is owned by company insiders.

Penske Automotive Group Company Profile

Penske Automotive Group, Inc, a diversified transportation services company, operates automotive and commercial truck dealerships worldwide. The company operates through four segments: Retail Automotive, Retail Commercial Truck, Other, and Non-Automotive Investments. It operates dealerships under franchise agreements with various automotive manufacturers and distributors.