Navigating 4 Analyst Ratings For Penske Automotive Group

Throughout the last three months, 4 analysts have evaluated Penske Automotive Group PAG, offering a diverse set of opinions from bullish to bearish.

The following table encapsulates their recent ratings, offering a glimpse into the evolving sentiments over the past 30 days and comparing them to the preceding months.

Analysts provide deeper insights through their assessments of 12-month price targets, revealing an average target of $160.25, a high estimate of $180.00, and a low estimate of $140.00. This upward trend is apparent, with the current average reflecting a 6.83% increase from the previous average price target of $150.00.

Breaking Down Analyst Ratings: A Detailed Examination

An in-depth analysis of recent analyst actions unveils how financial experts perceive Penske Automotive Group. The following summary outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Responding to changing market dynamics and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their response to recent developments related to Penske Automotive Group. This offers insight into analysts' perspectives on the current state of the company.
• Rating: Delving into assessments, analysts assign qualitative values, from 'Outperform' to 'Underperform'. These ratings communicate expectations for the relative performance of Penske Automotive Group compared to the broader market.
• Price Targets: Gaining insights, analysts provide estimates for the future value of Penske Automotive Group's stock. This comparison reveals trends in analysts' expectations over time.

Capture valuable insights into Penske Automotive Group's market standing by understanding these analyst evaluations alongside pertinent financial indicators. Stay informed and make strategic decisions with our Ratings Table.

Stay up to date on Penske Automotive Group analyst ratings.

Delving into Penske Automotive Group's Background

Penske Automotive Group operates in about 20 US states and overseas. It has over 150 US light-vehicle stores including in Puerto Rico as well as 210 franchised dealerships overseas, primarily in the United Kingdom but also in Australia, Continental Europe, and Japan. The company is the third-largest US-based dealership in terms of light-vehicle revenue and sells more than 40 brands, with over 90% of retail automotive revenue coming from luxury and import names. Other segments are service and finance and insurance. The firm's Premier Truck Group owns 48 truck dealerships selling mostly Freightliner and Western Star brands, and Penske owns over 10 used-vehicle stores in the US and UK under the CarShop (US) and Sytner Select (UK) brands. The company is based in Bloomfield Hills, Michigan,

Penske Automotive Group: A Financial Overview

Market Capitalization Analysis: The company's market capitalization surpasses industry averages, showcasing a dominant size relative to peers and suggesting a strong market position.

Positive Revenue Trend: Examining Penske Automotive Group's financials over 3 months reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 3.06% as of 30 June, 2024, showcasing a substantial increase in top-line earnings. When compared to others in the Consumer Discretionary sector, the company excelled with a growth rate higher than the average among peers.

Net Margin: Penske Automotive Group's net margin surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 3.13% net margin, the company effectively manages costs and achieves strong profitability.

Return on Equity (ROE): Penske Automotive Group's ROE surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 4.94% ROE, the company effectively utilizes shareholder equity capital.

Return on Assets (ROA): Penske Automotive Group's ROA stands out, surpassing industry averages. With an impressive ROA of 1.47%, the company demonstrates effective utilization of assets and strong financial performance.

Debt Management: Penske Automotive Group's debt-to-equity ratio is below the industry average. With a ratio of 1.68, the company relies less on debt financing, maintaining a healthier balance between debt and equity, which can be viewed positively by investors.

The Significance of Analyst Ratings Explained

Benzinga tracks 150 analyst firms and reports on their stock expectations. Analysts typically arrive at their conclusions by predicting how much money a company will make in the future, usually the upcoming five years, and how risky or predictable that company's revenue streams are.

Analysts attend company conference calls and meetings, research company financial statements, and communicate with insiders to publish their ratings on stocks. Analysts typically rate each stock once per quarter or whenever the company has a major update.

Beyond their standard evaluations, some analysts contribute predictions for metrics like growth estimates, earnings, and revenue, furnishing investors with additional guidance. Users of analyst ratings should be mindful that this specialized advice is shaped by human perspectives and may be subject to variability.

This article was generated by Benzinga's automated content engine and reviewed by an editor.