September 10, 2023 – Livforsakringsbolaget Skandia Omsesidigt, a Swedish life insurance company, has increased its holdings in Penske Automotive Group, Inc. (NYSE:PAG) by 29.1% during the first quarter of this year. According to the Securities and Exchange Commission (SEC), the institutional investor now owns 12,420 shares of Penske Automotive Group’s stock, after purchasing an additional 2,800 shares in the same period. As of its most recent SEC filing, Livforsakringsbolaget Skandia Omsesidigt’s investment in Penske Automotive Group was valued at $1,760,000.
On July 26th of this year, Penske Automotive Group announced its quarterly earnings results. The company reported earnings per share (EPS) of $4.41 for the quarter, surpassing analysts’ consensus estimate of $3.98 by $0.43. The return on equity for Penske Automotive Group stood at 29.07%, with a net margin of 4.30%. In terms of revenue, the company generated $7.47 billion during the quarter, beating analyst estimates of $7.20 billion. Compared to the same quarter in the previous year when it posted EPS of $4.93, Penske Automotive Group saw an increase in quarterly revenue by 8.1% year-over-year.
Analysts have recently provided their assessments on Penske Automotive Group’s performance. Bank of America raised its price target on the stock from $175.00 to $205.00 in a research report published on July 6th this year. Similarly, Benchmark increased its price target from $175 to $196 and gave Penske Automotive Group a “buy” rating on July 28th this year.
On July 19th this year, Stephens downgraded Penske Automotive Group from an “overweight” rating to an “equal weight” rating but still raised the price target for the stock from $156.00 to $185.00. Conversely, JPMorgan Chase & Co. downgraded Penske Automotive Group from a “neutral” rating to an “underweight” rating on July 31st this year, lowering their price target from $150.00 to $140.00.
Morgan Stanley, in its research report published on August 9th this year, issued an “underweight” rating for Penske Automotive Group while increasing the price target from $88.00 to $107.00.
According to data from Bloomberg, the average rating given by analysts for Penske Automotive Group’s stock is “Hold,” with an average price target of $166.60.
As of now, two analysts have rated the stock as a sell, one has assigned a hold rating, and two have recommended buying shares in the company.
Overall, Livforsakringsbolaget Skandia Omsesidigt’s increased holdings in Penske Automotive Group indicate their confidence in the company’s future prospects. With positive quarterly results and a mix of analyst opinions ranging from buy ratings to underweight ratings, investors should carefully consider their investment decisions regarding Penske Automotive Group’s stock based on their risk tolerance and financial goals.
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Institutional Investors and Hedge Funds Show Strong Interest in Penske Automotive Group as Stock Performance Soars
[stock_market_widget type=”chart” template=”basic” color=”#3946CE” assets=”SCHW” range=”1mo” interval=”1d” axes=”true” cursor=”true” range_selector=”true” api=”yf”]In a surprising turn of events, several institutional investors and hedge funds have made significant changes to their positions in Penske Automotive Group, a prominent company in the automotive industry. One such investor, Mitsubishi UFJ Trust & Banking Corp, has increased its position by 33.1% in the first quarter, acquiring an additional 1,597 shares valued at $910,000. Dark Forest Capital Management LP followed suit with a 74.1% increase in their position, purchasing an additional 2,672 shares valued at $890,000 during the same period.
Hennessy Advisors Inc. also took notice of Penske Automotive Group’s potential and increased their position by 19.0% in the first quarter. This move allowed them to acquire an additional 19,600 shares valued at $17,372,000. Arrowstreet Capital Limited Partnership was not far behind either, increasing their position by 22.5% in the fourth quarter with the acquisition of an extra 96,845 shares valued at $60,614,000. Victory Capital Management Inc., aiming to capitalize on this lucrative opportunity as well, increased their position by 6.0%, acquiring an additional 473 shares valued at $1,067,000.
This influx of support from various institutional investors and hedge funds marks a significant development for Penske Automotive Group. Currently owned by these entities is approximately 27.26% of the company’s stock.
On September 10th this year (2023), NYSE PAG saw positive movement as it traded up $0.67, reaching a price of $159.62 per share on that day alone. A total of 189,238 shares were exchanged which is a remarkable volume compared to its average trading volume of 256,319 shares per day.
Analyzing its stock performance over time reveals some interesting figures too. The fifty-day moving average price for Penske Automotive Group’s stock is $168.36, while the two-hundred-day moving average price stands at $152.07. With a market capitalization of $10.74 billion, a P/E ratio of 9.10, and a beta of 1.23, it is evident that Penske Automotive Group has experienced significant growth and stability in the market.
Additionally, Penske Automotive Group boasts commendable financial indicators with a current ratio of 1.00 and a quick ratio of 0.24. The company’s debt-to-equity ratio stands at 0.37, showcasing its prudent fiscal management strategies.
Analysts have been following the progress of Penske Automotive Group closely as well, providing insightful commentary on the company’s prospects. Recently, Bank of America expressed their confidence by boosting Penske Automotive Group’s price target from $175.00 to $205.00 in a research report released on July 6th. Benchmark also showed optimism in their research report by raising the stock’s price target from $175 to $196 on July 28th.
Conversely, some analysts have shared more reserved opinions about Penske Automotive Group’s future performance. For instance, JPMorgan Chase & Co., who previously held a “neutral” rating for the stock, downgraded it to an “underweight” rating and dropped their price target from $150 to $140 on July 31st.
Despite varying opinions among analysts regarding the company’s potential going forward, Penske Automotive Group remains steadfast in its commitment to shareholders’ interests. As evidence of this dedication, the company recently declared a quarterly dividend which was paid on September 1st this year (2023). Stockholders of record as of August 10th received a dividend payment amounting to $0.72 per share – an increase compared to their previous quarterly dividend of $0.66 – resulting in an annualized dividend yield of 1.80%.
To shed light on recent corporate activities, some notable insider trading has taken place within Penske Automotive Group. Director John Barr sold 3,000 shares of the stock on August 9th at an average price of $163.49 per share, amounting to a total transaction value of $490,470. President Robert H. Kurnick, Jr., also made a significant sale on September 1st when he disposed of 10,997 shares at an average price of $166.12 per share for a total transaction value of $1,826,821.
These transactions were duly disclosed in filings with the Securities and Exchange Commission (SEC), which can be accessed through provided hyperlinks.
Overall, the recent activity surrounding Penske Automotive Group has sparked excitement and intrigue among investors and market analysts alike. With fluctuating ratings and varying opinion among experts, it is evident that there are differing viewpoints on the company’s potential for growth and profitability. Nevertheless, with considerable institutional support and recent positive movements in its stock price, Penske Automotive Group continues to assert its relevance in the highly competitive automotive industry through strategic partnerships and offerings that appeal to both investors and consumers alike.
