Penske Automotive Group (NYSE:PAG) Announces Quarterly Earnings Results, Misses Estimates By $0.28 EPS

Penske Automotive Group (NYSE:PAG) posted its earnings results on Wednesday. The company reported $2.91 earnings per share for the quarter, missing analysts’ consensus estimates of $3.19 by ($0.28), Zacks reports. Penske Automotive Group had a net margin of 3.08% and a return on equity of 16.84%. The business had revenue of $7.77 billion during the quarter, compared to the consensus estimate of $7.62 billion. During the same period in the previous year, the firm earned $3.54 EPS. The business’s revenue was down 3.8% compared to the same quarter last year.

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

• Penske reported a strong full year with $31 billion revenue, ~$1.3 billion EBT, $935 million net income and $14.13 EPS, plus a 21st consecutive dividend raise to $1.40 and $182 million of share buybacks.
• Q4 faced meaningful headwinds—automotive same-store units fell ~8%, new German luxury sales declined ~20% in the U.S. and ~22% in the U.K., and Q4 revenue was $7.8 billion (down 4%), with about $29 million of identifiable one-time EBT impacts including a Jaguar Land Rover cyber incident and freight weakness.
• Management is pursuing strategic M&A and portfolio optimization: acquisitions (including Penske Motor Group and multiple Toyota/Lexus stores) add roughly $2 billion of annualized revenue while divestitures generated $200 million proceeds (with ~$140 million expected more in 2026) to redeploy into higher-return assets.
• Aftermarket/service remains a performance driver—U.S. service & parts revenue grew ~6%, technician productivity is ~$30k gross profit per month, and fixed operations are at record levels with management targeting continued mid-single-digit growth.
• Penske’s truck/PTS businesses were pressured by the freight recession and lower gain-on-sale (an ~$87 million YoY reduction), but fleet reductions, cost cuts and early signs of freight market tightening (improved Jan utilization) leave management cautiously optimistic about recovery timing and future upside.

Penske Automotive Group Price Performance

Shares of PAG stock traded up $0.38 during trading hours on Thursday, hitting $173.60. The stock had a trading volume of 52,377 shares, compared to its average volume of 256,494. The company has a debt-to-equity ratio of 0.22, a current ratio of 0.97 and a quick ratio of 0.21. Penske Automotive Group has a one year low of $134.05 and a one year high of $189.51. The stock’s 50-day moving average price is $163.84 and its two-hundred day moving average price is $168.86. The stock has a market capitalization of $11.43 billion, a price-to-earnings ratio of 12.23, a PEG ratio of 2.26 and a beta of 0.92.

Penske Automotive Group Increases Dividend

The business also recently announced a quarterly dividend, which will be paid on Thursday, March 5th. Investors of record on Wednesday, February 25th will be paid a dividend of $1.40 per share. The ex-dividend date of this dividend is Wednesday, February 25th. This is a positive change from Penske Automotive Group’s previous quarterly dividend of $1.38. This represents a $5.60 annualized dividend and a yield of 3.2%. Penske Automotive Group’s dividend payout ratio is 38.85%.

Penske Automotive Group News Roundup

Here are the key news stories impacting Penske Automotive Group this week:

• Positive Sentiment: Revenue beat and solid top-line items — Q4 revenue was $7.77B vs. street ~$7.62B, showing better-than-expected sales and strength in retail service & parts. This supports revenue resilience despite industry headwinds. Article Title
• Positive Sentiment: Dividend increase — Board raised the quarterly cash dividend to $1.40 (1.4% bump) with a ~3.2% yield, signaling confidence in cash flow and returning capital to shareholders. This can support the share price and income-focused investor interest. Article Title
• Positive Sentiment: Share repurchases continued — Company repurchased ~1.18M shares in 2025 (~1.8% of outstanding), supporting EPS and signaling management confidence in valuation. Article Title
• Neutral Sentiment: Service & parts strength — Retail automotive service & parts revenue reached record Q4 and full-year levels, with same-store service & parts revenue up ~5%, a stable profit contributor that cushions vehicle sales volatility. Article Title
• Neutral Sentiment: Management commentary and materials available — Earnings call transcript and slide deck were published (useful for investors digging into margin drivers, regional trends, and F&I performance). These offer more detail but contain mixed signals. Article Title
• Negative Sentiment: EPS miss and declining profitability — GAAP EPS was $2.91 vs. consensus $3.19, and EPS fell from $3.54 a year ago. Net margin compressed to ~3.08%, which is pressuring near-term investor sentiment. Article Title
• Negative Sentiment: Year-over-year revenue decline and margin pressure — Revenue was down ~3.8% YoY and management flagged margin/headwind items on the call; that combination explains the cautious market reaction despite the revenue beat. Article Title

Insider Activity at Penske Automotive Group

In other Penske Automotive Group news, CFO Michelle Hulgrave sold 2,100 shares of the firm’s stock in a transaction dated Monday, November 24th. The shares were sold at an average price of $160.17, for a total value of $336,357.00. Following the completion of the sale, the chief financial officer owned 16,822 shares of the company’s stock, valued at $2,694,379.74. This trade represents a 11.10% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this hyperlink. Corporate insiders own 51.70% of the company’s stock.

Hedge Funds Weigh In On Penske Automotive Group

Hedge funds and other institutional investors have recently made changes to their positions in the company. Goldman Sachs Group Inc. boosted its holdings in shares of Penske Automotive Group by 28.4% in the 1st quarter. Goldman Sachs Group Inc. now owns 380,267 shares of the company’s stock valued at $54,751,000 after buying an additional 84,045 shares in the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC increased its position in Penske Automotive Group by 4.7% during the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 68,884 shares of the company’s stock worth $9,918,000 after purchasing an additional 3,100 shares during the last quarter. Acadian Asset Management LLC purchased a new stake in Penske Automotive Group during the first quarter valued at about $42,000. EverSource Wealth Advisors LLC lifted its position in Penske Automotive Group by 506.9% during the second quarter. EverSource Wealth Advisors LLC now owns 880 shares of the company’s stock valued at $151,000 after buying an additional 735 shares in the last quarter. Finally, Brown Advisory Inc. boosted its position in Penske Automotive Group by 47.0% during the 2nd quarter. Brown Advisory Inc. now owns 3,108 shares of the company’s stock worth $534,000 after purchasing an additional 994 shares during the period. Hedge funds and other institutional investors own 77.08% of the company’s stock.

Analyst Ratings Changes

Several brokerages have recently commented on PAG. JPMorgan Chase & Co. reduced their target price on Penske Automotive Group from $180.00 to $175.00 and set a “neutral” rating for the company in a research note on Wednesday, November 5th. Bank of America began coverage on Penske Automotive Group in a research report on Tuesday, December 9th. They issued a “buy” rating and a $195.00 target price for the company. Weiss Ratings reissued a “buy (b)” rating on shares of Penske Automotive Group in a research note on Friday, October 31st. Barclays dropped their price target on shares of Penske Automotive Group from $195.00 to $190.00 and set an “overweight” rating on the stock in a research report on Wednesday, January 21st. Finally, Deutsche Bank Aktiengesellschaft reiterated a “buy” rating on shares of Penske Automotive Group in a report on Monday, December 8th. Seven investment analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the company’s stock. According to data from MarketBeat.com, Penske Automotive Group presently has a consensus rating of “Moderate Buy” and an average target price of $183.71.

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.