Penske Automotive Group (NYSE:PAG) Releases Quarterly Earnings Results, Beats Estimates By $0.20 EPS

Penske Automotive Group (NYSE:PAG) issued its earnings results on Wednesday. The company reported $3.62 earnings per share (EPS) for the quarter, beating the consensus estimate of $3.42 by $0.20, Zacks reports. The company had revenue of $8.51 billion for the quarter, compared to analyst estimates of $7.98 billion. Penske Automotive Group had a net margin of 2.81% and a return on equity of 14.78%. The company’s revenue for the quarter was up 11.1% on a year-over-year basis. During the same quarter last year, the firm earned $3.78 EPS.

Here are the key takeaways from Penske Automotive Group’s conference call:

• Penske Corporation and Mitsui proposed acquiring the remaining PAG shares for $210 per share. An independent special committee has been formed to evaluate the unsolicited, non-binding offer, and management declined to take questions on the matter.
• PAG reported a strong second quarter, with revenue up 6% to $8.5 billion and adjusted EPS of $3.62 excluding a roughly $30 million dealership-sale gain. Cash generation supported a $141 million debt reduction and the 23rd consecutive quarterly dividend increase to $1.44 per share.
• The commercial truck recovery is gaining momentum: North American Class 8 orders rose 170% year over year, while Premier Truck Group’s backlog reached approximately 10,400 units. Management expects most of the backlog to convert into retail sales in the second half of 2026, with stronger used-truck demand and pricing also benefiting the business.
• Australia’s commercial vehicle and power systems operations posted significant growth, including a 63% increase in off-highway revenue and nearly $660 million of secured 2026 orders. Management sees a path toward AUD 1 billion in data-center revenue by 2030 and expects recurring maintenance and remanufacturing revenue from prime-power deployments.
• The U.K. automotive market remains challenging because of higher taxes, affordability pressures, reduced Motability programs, and increasingly stringent electrification mandates. PAG also experienced higher personnel, technology, rent, and maintenance costs, leaving SG&A at 71.8% of gross profit despite a 250-basis-point sequential improvement.

Penske Automotive Group Trading Down 1.4%

Shares of Penske Automotive Group stock traded down $3.13 on Friday, reaching $217.48. 272,986 shares of the company’s stock were exchanged, compared to its average volume of 324,300. The company has a market capitalization of $14.30 billion, a P/E ratio of 16.06, a price-to-earnings-growth ratio of 2.89 and a beta of 0.87. Penske Automotive Group has a 52 week low of $140.12 and a 52 week high of $227.00. The company has a debt-to-equity ratio of 0.36, a quick ratio of 0.22 and a current ratio of 0.98. The firm’s 50-day moving average is $185.59 and its two-hundred day moving average is $168.52.

Penske Automotive Group Increases Dividend

The firm also recently declared a quarterly dividend, which will be paid on Tuesday, September 1st. Shareholders of record on Friday, August 14th will be issued a dividend of $1.44 per share. This represents a $5.76 dividend on an annualized basis and a dividend yield of 2.6%. The ex-dividend date is Friday, August 14th. This is a positive change from Penske Automotive Group’s previous quarterly dividend of $1.42. Penske Automotive Group’s dividend payout ratio (DPR) is currently 42.39%.

Insiders Place Their Bets

In related news, Director Greg C. Smith sold 1,488 shares of the stock in a transaction on Monday, May 18th. The shares were sold at an average price of $160.02, for a total transaction of $238,109.76. The sale was disclosed in a document filed with the SEC, which can be accessed through this link. Also, CFO Michelle Hulgrave sold 1,500 shares of Penske Automotive Group stock in a transaction on Tuesday, June 2nd. The shares were sold at an average price of $171.80, for a total transaction of $257,700.00. Following the completion of the sale, the chief financial officer directly owned 17,596 shares of the company’s stock, valued at approximately $3,022,992.80. This trade represents a 7.86% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. 52.90% of the stock is owned by insiders.

Institutional Inflows and Outflows

A number of large investors have recently modified their holdings of the stock. Victory Capital Management Inc. boosted its holdings in Penske Automotive Group by 6.7% during the 4th quarter. Victory Capital Management Inc. now owns 1,484,075 shares of the company’s stock worth $234,914,000 after acquiring an additional 92,794 shares during the last quarter. Dimensional Fund Advisors LP grew its position in Penske Automotive Group by 13.7% during the fourth quarter. Dimensional Fund Advisors LP now owns 1,293,467 shares of the company’s stock valued at $204,761,000 after buying an additional 156,308 shares during the period. Bank of Montreal Can raised its holdings in shares of Penske Automotive Group by 39,232.7% in the 4th quarter. Bank of Montreal Can now owns 863,352 shares of the company’s stock worth $136,660,000 after purchasing an additional 861,157 shares during the period. AQR Capital Management LLC raised its holdings in shares of Penske Automotive Group by 6.6% in the 3rd quarter. AQR Capital Management LLC now owns 726,490 shares of the company’s stock worth $125,043,000 after purchasing an additional 44,749 shares during the period. Finally, State Street Corp increased its position in Penske Automotive Group by 3.3% in the fourth quarter. State Street Corp now owns 632,879 shares of the company’s stock worth $100,178,000 after buying an additional 20,267 shares during the last quarter. Institutional investors own 77.08% of the company’s stock.

Analyst Ratings Changes

A number of analysts have commented on PAG shares. Stephens lifted their target price on shares of Penske Automotive Group from $155.00 to $160.00 and gave the stock an “equal weight” rating in a report on Monday, May 4th. UBS Group set a $190.00 target price on Penske Automotive Group in a research note on Friday, July 10th. Benchmark downgraded Penske Automotive Group from a “buy” rating to a “hold” rating in a research note on Wednesday, July 22nd. Barclays lifted their price objective on shares of Penske Automotive Group from $190.00 to $220.00 and gave the company an “overweight” rating in a report on Wednesday, July 15th. Finally, Morgan Stanley reaffirmed an “overweight” rating and issued a $190.00 price objective on shares of Penske Automotive Group in a research report on Thursday, May 7th. Five research analysts have rated the stock with a Buy rating and five have issued a Hold rating to the stock. According to data from MarketBeat, Penske Automotive Group has a consensus rating of “Moderate Buy” and an average price target of $196.00.

Penske Automotive Group Company Profile

Penske Automotive Group, Inc (NYSE: PAG), headquartered in Bloomfield Township, Michigan, is an international transportation services company primarily focused on automotive and commercial truck dealerships. The company retails new and pre-owned vehicles across a broad spectrum of brands, while offering parts, maintenance, collision repair and reconditioning services. In addition, Penske provides financing and insurance products through its integrated finance and insurance operations, supporting both retail customers and commercial clients.

Formed in 1990 as United Auto Group and publicly traded since 1999, Penske Automotive Group has grown through organic expansion and strategic acquisitions to establish a network of dealerships and service centers across the United States and Europe.