Penske Automotive Group (NYSE:PAG) Rating Increased to Strong-Buy at Zacks Investment Research

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Penske Automotive Group (NYSE:PAGGet Rating) was upgraded by Zacks Investment Research from a “hold” rating to a “strong-buy” rating in a note issued to investors on Monday, Zacks.com reports. The brokerage currently has a $129.00 target price on the stock. Zacks Investment Research‘s price target would indicate a potential upside of 18.85% from the stock’s previous close.

According to Zacks, “Shares of Penske have outperformed the industry and the sector over the past year. The company is riding high on strategic acquisitions. It has become the largest dealership group for Freightliner in North America with Warner Truck Centers buyout. Buyouts of Kansas City Freightliner, McCoy and Team Trucks Centers are boosting Penske’s top line. Notably, over the last 12 months, the company has completed acquisitions or opened new dealerships that would add $1.9 billion in annualized revenue. Penske Transportation Solutions (PTS) joint venture and acquisition of Black Horse Carriers are driving sales. Expansion of digital capabilities, balance sheet strength and investor-friendly moves are other positives. In the light of such tailwinds, Penske is viewed as an attractive bet and looks poised to maintain its bull run. “

PAG has been the topic of a number of other reports. JPMorgan Chase & Co. dropped their price objective on Penske Automotive Group from $120.00 to $105.00 and set a “neutral” rating on the stock in a research note on Thursday, April 7th. StockNews.com upgraded Penske Automotive Group from a “buy” rating to a “strong-buy” rating in a research note on Thursday, April 7th. Finally, Morgan Stanley lifted their price objective on Penske Automotive Group from $90.00 to $95.00 and gave the stock an “underweight” rating in a research note on Tuesday, March 8th. One research analyst has rated the stock with a sell rating, one has given a hold rating, three have given a buy rating and two have issued a strong buy rating to the stock. According to MarketBeat, Penske Automotive Group presently has a consensus rating of “Buy” and a consensus target price of $118.83.

PAG traded down $3.24 during trading on Monday, reaching $108.54. 14,608 shares of the stock traded hands, compared to its average volume of 336,113. The stock has a market cap of $8.24 billion, a price-to-earnings ratio of 6.23, a price-to-earnings-growth ratio of 3.65 and a beta of 1.25. Penske Automotive Group has a fifty-two week low of $72.35 and a fifty-two week high of $114.57. The company has a debt-to-equity ratio of 0.33, a current ratio of 0.97 and a quick ratio of 0.26. The stock’s 50-day simple moving average is $100.54 and its two-hundred day simple moving average is $102.36.

Penske Automotive Group (NYSE:PAGGet Rating) last announced its quarterly earnings results on Wednesday, April 27th. The company reported $4.76 earnings per share for the quarter, topping analysts’ consensus estimates of $3.77 by $0.99. Penske Automotive Group had a return on equity of 35.33% and a net margin of 5.13%. The company had revenue of $6.98 billion during the quarter, compared to analysts’ expectations of $6.32 billion. During the same quarter in the previous year, the firm earned $2.26 earnings per share. The business’s quarterly revenue was up 20.8% compared to the same quarter last year. Research analysts anticipate that Penske Automotive Group will post 15.79 earnings per share for the current fiscal year.

Several hedge funds have recently added to or reduced their stakes in the company. Morgan Stanley boosted its holdings in shares of Penske Automotive Group by 75.4% in the 2nd quarter. Morgan Stanley now owns 606,567 shares of the company’s stock worth $45,789,000 after acquiring an additional 260,834 shares in the last quarter. BlackRock Inc. boosted its holdings in shares of Penske Automotive Group by 13.9% in the 4th quarter. BlackRock Inc. now owns 1,619,163 shares of the company’s stock worth $173,607,000 after acquiring an additional 197,894 shares in the last quarter. Goldman Sachs Group Inc. boosted its holdings in shares of Penske Automotive Group by 38.6% in the 3rd quarter. Goldman Sachs Group Inc. now owns 613,082 shares of the company’s stock worth $61,676,000 after acquiring an additional 170,646 shares in the last quarter. Hennessy Advisors Inc. acquired a new position in shares of Penske Automotive Group in the 4th quarter worth approximately $12,684,000. Finally, Norges Bank acquired a new position in shares of Penske Automotive Group in the 4th quarter worth approximately $11,919,000. Institutional investors own 50.13% of the company’s stock.

Penske Automotive Group Company Profile (Get Rating)

Penske Automotive Group, Inc, a diversified transportation services company, operates automotive and commercial truck dealerships. 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.

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