Fintel reports that on July 31, 2023, JP Morgan downgraded their outlook for Penske Automotive Group (NYSE:PAG) from Neutral to Underweight.

Analyst Price Forecast Suggests 4.08% Downside

As of July 6, 2023, the average one-year price target for Penske Automotive Group is 154.84. The forecasts range from a low of 88.88 to a high of $183.75. The average price target represents a decrease of 4.08% from its latest reported closing price of 161.42.

See our leaderboard of companies with the largest price target upside.

The projected annual revenue for Penske Automotive Group is 27,295MM, a decrease of 5.03%. The projected annual non-GAAP EPS is 15.25.

Penske Automotive Group Declares $0.66 Dividend

On May 11, 2023 the company declared a regular quarterly dividend of $0.66 per share ($2.64 annualized). Shareholders of record as of May 22, 2023 received the payment on June 1, 2023. Previously, the company paid $0.61 per share.

At the current share price of $161.42 / share, the stock’s dividend yield is 1.64%.

Looking back five years and taking a sample every week, the average dividend yield has been 2.64%, the lowest has been 1.39%, and the highest has been 7.88%. The standard deviation of yields is 0.99 (n=216).

The current dividend yield is 1.02 standard deviations below the historical average.

Additionally, the company’s dividend payout ratio is 0.13. The payout ratio tells us how much of a company’s income is paid out in dividends. A payout ratio of one (1.0) means 100% of the company’s income is paid in a dividend. A payout ratio greater than one means the company is dipping into savings in order to maintain its dividend – not a healthy situation. Companies with few growth prospects are expected to pay out most of their income in dividends, which typically means a payout ratio between 0.5 and 1.0. Companies with good growth prospects are expected to retain some earnings in order to invest in those growth prospects, which translates to a payout ratio of zero to 0.5.

What is the Fund Sentiment?

There are 684 funds or institutions reporting positions in Penske Automotive Group. This is an increase of 5 owner(s) or 0.74% in the last quarter. Average portfolio weight of all funds dedicated to PAG is 0.19%, an increase of 17.43%. Total shares owned by institutions decreased in the last three months by 3.24% to 23,345K shares. The put/call ratio of PAG is 0.79, indicating a bullish outlook.

What are Other Shareholders Doing?

Lsv Asset Management holds 1,576K shares representing 2.34% ownership of the company. In it’s prior filing, the firm reported owning 1,619K shares, representing a decrease of 2.76%. The firm increased its portfolio allocation in PAG by 22.11% over the last quarter.

Burgundy Asset Management holds 1,115K shares representing 1.66% ownership of the company. In it’s prior filing, the firm reported owning 1,113K shares, representing an increase of 0.10%. The firm increased its portfolio allocation in PAG by 18.13% over the last quarter.

Bank Of America holds 666K shares representing 0.99% ownership of the company. In it’s prior filing, the firm reported owning 662K shares, representing an increase of 0.56%. The firm increased its portfolio allocation in PAG by 11.89% over the last quarter.

VTSMX – Vanguard Total Stock Market Index Fund Investor Shares holds 643K shares representing 0.96% ownership of the company. In it’s prior filing, the firm reported owning 649K shares, representing a decrease of 1.01%. The firm increased its portfolio allocation in PAG by 12.79% over the last quarter.

Envestnet Asset Management holds 619K shares representing 0.92% ownership of the company. In it’s prior filing, the firm reported owning 17K shares, representing an increase of 97.19%. The firm decreased its portfolio allocation in PAG by 17.18% over the last quarter.

Penske Automotive Group Background Information
(This description is provided by the company.)

Penske Automotive Group, Inc., headquartered in Bloomfield Hills, Michigan, is an international transportation services company that operates automotive and commercial truck dealerships principally in the United States, the United Kingdom, Canada, and Western Europe

This article originally appeared on Fintel

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