PAG stock: buy or sell?

PAG stock price: $45.80 -0.26% At close on September 20th, 2019

Updated on:
September 20th, 2019

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Shares of Penske Automotive closed today at $45.80 and remained stable a lame -0.26%. Friday was the fifth red session in a row, sliding in full a -4.53%.

Penske Automotive Group, Inc. operates as a transportation services company. The company operates through four segments: Retail Automotive, Retail Commercial Truck, Other, and Non-Automotive Investments.

Should I buy PAG stock?

Even if you are a experienced or a novel trader, best trading results come from using an investing strategy that never leaves to random or subjective opinions when is the best moment to buy or sell stocks. That's why is so important to define your own trading plan that fits your character as inversor. At Stocks2.com, we use very simple but trusted and powerful trend following trading strategies. Simple things usually work the best.

None of our preferred buy setups matches with Penske Automotive stock situation right now, hence this is not a suitable entry point.

Buy setupElegible
New all-time highNo
New 52 week highNo
Price crossing up 200d MANo
100d MA crossing up 200d MANo
This is not a selling recommendation at all, just it's not the best moment to buy if you follow any of these trading strategies.

Is Penske Automotive stock a buy?

Everyday, hundreds of stock ratings are posted by financial analysts to indicate a particular stock's attractiveness. At Stocks2.com, we gathered 7 ratings published for PAG stock in the last month.

The general sentiment of these ratings is bullish for PAG stock, with 5 positive ratings.
Is PAG a good stock to buy?
DateAnalyst / BrokerPrevious ratingCurrent rating
2019-9-16Jefferies Financial Groupn/aBuy
2019-8-29Royal Bank of Canadan/aSector Performer
2019-8-2Morgan Stanleyn/aOverweight
2019-8-19Peel Huntn/aBuy
2019-4-16Morgan StanleyOverweightOverweight
2019-2-19JPMorgan Chase & Co.n/aNeutral
2019-2-13Seaport Global Securitiesn/aBuy

PAG stock analysis

Daily outlook

Penske Automotive remained constant a lame -0.26% and closed at $45.80.

Penske Automotive shares remained steady -0.26% to $45.80 today. Since price and SMA200d lines crossed up on Sep 5th, PAG climbed $3.25 (7.64%). Since June when SMA100d and SMA200d crossed up, PAG price gained $0.42 per share (0.93%). PAG is retaking the upward trend marking a new rising bottom heading to break out over $49.28.

PAG stock chart (daily)

Weekly outlook

After boosting an amazing 7.76% in a week last week, Penske Automotive closed this week at $45.80 and eased a terrible -4.50%.

Early September PAG price bounced up over the SMA of 40 weeks that acted as support stopping new slides. Late May, SMA20w and SMA40w crossed up triggering a rise of 4.69%.

PAG stock chart (weekly)

PAG stock price history

PAG stock went public on October 23rd, 1996 with a price of $12.271. Since then, PAG stock surged a 273.30%, with an average of 12.40% per year. If you had invested right after PAG's IPO a $1,000 in PAG stock in 1996, it would worth $2,733.00 today.

1: Adjusted price after possible price splits or reverse-splits.

PAG stock historical price chart

PAG stock reached 52-week highs at $50.77, and all-time highs 2018-08-28 with a price of 52.

PAG stock price target is $56.30

Nobody can reliably foresee how stock prices may evolve in the future. However, financial institutions invest time and resources to provide the most accurated estimations to help investors to make their decisions. You should not follow the analysts' PAG stock price predictions in the hope that they will be met as they may be wrong and not met. For the last 30 days we found 4 price predictions for PAG stock:
PAG stock price predictions
DateAnalyst / BrokerActionPrevious targetCurrent targetDiff
2019-8-2Morgan StanleyRaises Target$54.00$57.005.6%
2019-4-16Morgan StanleyLowers Target$62.00$56.00-9.7%
2019-2-19JPMorgan Chase & Co.Initiatesn/a$51.00-
2019-2-13Seaport Global SecuritiesInitiatesn/a$61.00-
(in average)$58.00$56.30-3.0%
The price target for Penske Automotive stock is $56.30, moving in a range between $61.00 and $51.00. In average, analysts' outlook on PAG price forecast is negative, downsizing the target by a -3.00% from previous estimations.

Financials and fundamental analysis

Earnings date and Earnings per Share

Penske Automotive disappointed analysts on February when it posted an Earnings per Share (EPS) of $1.11 when the analysts' forecast was $1.16.
PAG earnings date and EPS evolution
QuarterReporting dateEstimated EPSActual EPSSurprise
2017-Q2-n/a1.23n/a
2017-Q32017-10-251.081.11.9%
2017-Q42018-02-0811.011.0%
2018-Q12018-04-251.121.2511.6%
2018-Q22018-07-261.421.5811.3%
2018-Q32018-10-251.381.41.4%
2018-Q42019-02-071.161.11-4.3%
2019-Q1-n/an/an/a
2019-Q2-n/an/an/a
2019-Q3-n/an/an/a

Annual financial results

In 2018, Penske Automotive annual revenues rose a shining 6.54% to $22,785.10 M USD from $21,386.90 marked in 2017. When comparing 2018 vs 2017, nonetheless, profit margin (that is, the net income divided by revenues) remained constant a -0.80% to 2.07%.

PAG annual Sales and Income evolution
YearSalesYoYIncome/(margin)YoY
2013$14,710 M-$250 M1.7%-
2014$17,177 M16.77%$287 M1.7%14.86%
2015$19,285 M12.27%$326 M1.7%13.74%
2016$20,119 M4.32%$343 M1.7%5.15%
2017$21,387 M6.30%$613 M2.9%78.86%
2018$22,785 M6.54%$471 M2.1%-23.20%

Quarterly financial results

Penske Automotive reported $5,439.30 million in sales for 2018-Q4, a -3.88% less compared to previous quarter. Reported quarter income marked $98.10 million with a profit margin of 1.80%. Profit margin stayed stable a -0.50% compared to previous quarter when profit margin was 2.30%. When comparing sales to same quarter last year, Penske Automotive sales marked a slightly fine move and stayed steady a 0.77%. Looking back to recent quarterly results, Penske Automotive posted 2 negative quarters in a row.
PAG quarterly Sales and Income evolution
QuarterSales1QoQ2Income1/(margin)QoQ2
2017-Q2$5,380 M-$106 M2.0%-
2017-Q3$5,520 M2.60%$94 M1.7%-11.04%
2017-Q4$5,398 M-2.21%$330 M6.1%250.05%
2018-Q1$5,747 M6.46%$108 M1.9%-67.25%
2018-Q2$5,940 M3.37%$135 M2.3%24.51%
2018-Q3$5,659 M-4.74%$130 M2.3%-3.27%
2018-Q4$5,439 M-3.88%$98 M1.8%-24.65%
2019-Q1$5,564 M2.30%$100 M1.8%2.14%

Penske Automotive ownership

When you are planning to buy a company, it's always worth to have a look its ownership structure.

Penske Automotive shares owned by insiders (that is, founders, CEO, CTO, main executives or other management staff) currently counts a 17.93% of all shares.

Bearish positions for PAG stock account 0.00%, no big difference from last month.

The following table compares ownership indicators for other stocks related to Penske Automotive:

PAGABGANCARCPRT
Market cap$3.9 B$1.9 B$4.5 B$2.2 B$18.9 B
Total shares84.1 M19.4 M89.1 M76.0 M229.1 M
Float shares33.1 M17.2 M60.0 M58.6 M200.5 M
  - Institutional holdings (%)86.6%109.4%87.1%116.4%86.9%
  - Insider holdings (%)17.9%2.2%13.6%2.1%12.9%
Shares in short selling0.0%0.0%0.0%0.0%0.0%

PAG summary

Friday, September 20th, 2019
Open$46.03
Close$45.80
Day range$45.74 - $46.65
Previous close$45.92
Session gain-0.26%
Average true range$1.32
50d mov avg$44.58
100d mov avg$44.84
200d mov avg$43.83
Daily patternlb02a
Weekly pattern

Penske Automotive performance

Stocks performance is always measured in comparision to the market or competitors and related stocks in the same industry. We selected Asbury Automotive, AutoNation, Avis Budget, Copart, America's Car-Mart, Group 1 Automotive, CarMax, Lithia Motors, Rush Enterprises and Sonic Automotive as the bechmarking frame for Penske Automotive stock.
Stock3m6m12m
PAGPenske Automotive-1.93%9.46%-5.82%
ABGAsbury Automotive22.92%50.23%39.09%
ANAutoNation19.26%51.06%14.24%
CARAvis Budget-14.46%-11.71%-13.50%
CPRTCopart11.69%39.38%57.06%
CRMTAmerica's Car...7.05%6.50%17.72%
GPIGroup 1 Automotiv...10.75%43.06%22.83%
KMXCarMax-1.18%37.32%8.26%
LADLithia Motors9.18%51.86%50.30%
RUSHARush Enterprises11.64%-2.79%-5.30%
SAHSonic Automotive27.54%109.67%40.50%

Penske Automotive competitors

One check before investing in any stock is to review a list of its competitors, in this case for Penske Automotive. We selected 10 companies as Penske Automotive competitors as they are in the same industry or have similar market objectives.