Penske Automotive Group, Inc. (NYSE:PAG) to Issue Dividend Increase - $1.22 Per Share

Penske Automotive Group, Inc. (NYSE:PAG) has made an announcement regarding its quarterly dividend on February 14th. Shareholders who are on record as of Monday, February 24th will receive a dividend of $1.22 per share on March 6th. This shows an annualized dividend of $4.88, yielding approximately 2.80%. Notably, the ex-dividend date for this payment is also Monday, February 24th. This increase indicates an improvement from the previous quarterly dividend of $1.19.

Dividend Growth and Financial Stability

Penske Automotive Group has managed to raise its dividend payment significantly, boasting an average increase of 32.0% per year over the last three years. The company maintains a dividend payout ratio of 34.3%, suggesting its dividend is adequately covered by its earnings. Analysts predict that Penske Automotive Group will earn around $13.86 per share next year, indicating that it should continue to cover the annual dividend of $4.88, with an expected future payout ratio of 35.2%.

Company Stock Performance

During mid-day trading on Friday, shares of NYSE PAG traded down by $1.72, reaching $174.17, with a trading volume of 319,985 shares, significantly higher than the average volume of 182,772. The company’s financial ratios include a quick ratio of 0.20 and a current ratio of 0.91. Penske Automotive Group’s debt-to-equity ratio is at 0.22. The company has experienced a twelve-month low of $142.32 and a high of $180.12. Its 50-day simple moving average is $160.03, while the two-hundred day moving average stands at $160.25. Furthermore, Penske Automotive Group has a market capitalization of $11.63 billion with a price-to-earnings ratio of 13.35 and a beta of 1.20.

Recent Earnings Report

Penske Automotive Group released its latest quarterly earnings data on February 13th, revealing earnings of $3.54 per share, surpassing analysts' expectations of $3.37 by $0.17. The company posted a net margin of 2.91% and achieved a return on equity of 18.38%. This year, analysts forecast Penske Automotive Group to report earnings per share of 13.51.

Analyst Ratings

In other news, Benchmark initiated coverage of Penske Automotive Group shares in a research note dated December 12th, assigning a "buy" rating to the stock. Out of the analysts, one has rated the stock as a sell, another as a hold, while three analysts have given it a buy rating. According to MarketBeat.com data, Penske Automotive Group holds an average rating of "Hold" with an average target price of $170.25.

About Penske Automotive Group

Penske Automotive Group, Inc. is a diverse company engaged in transportation services, operating a vast network of automotive and commercial truck dealerships globally. The company functions through four primary segments: Retail Automotive, Retail Commercial Truck, Other, and Non-Automotive Investments, and operates dealerships in collaboration with various automotive manufacturers.

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