Penske Automotive Group Inc. (NYSE:PAG) shares traded higher over the last trading session, gaining 0.32% on 06/10/21. The shares fell to a low of $78.88 before closing at $79.27. Intraday shares traded counted 0.34 million, which was -29.79% lower than its 30-day average trading volume of 261.08K. PAG’s previous close was $79.02 while the outstanding shares total 80.60M. The firm has a beta of 1.63, a 12-month trailing P/E ratio of 9.49, and a growth ratio of 1.02. The stock’s Relative Strength Index (RSI) is 35.66, with weekly volatility at 2.53% and ATR at 2.36. The PAG stock’s 52-week price range has touched low of $36.31 and a $93.45 high.
Investors have identified the Auto & Truck Dealerships company Penske Automotive Group Inc. as an interesting stock but before investments are made there, an in-depth look at its trading activities will have to be conducted. The share is trading with a market value of around $6.57 billion, the company now has both obstacles and catalysts that affect them and they came from their mode of operations. With the company affected by events currently, it is a perfect time to analyze the numbers behind the firm in order to come up with a rather realistic picture of what this stock is.
Penske Automotive Group Inc. (PAG) Fundamentals that are to be considered.
When analyzing a stock, the first fundamental thing to take into account is the balance sheet. How healthy the balance sheet of a company is will determine if the company will be able to carry out all its financial and non-financial obligations and also keep the faith of its investors. For PAG, the company has in raw cash 94.6 million on their books with 88.0 million currently as liabilities. How the trend is over time is what investors should be concerned about. The company has a healthy balance sheet as their debt profile has been on an incline. In terms of their assets, the company currently has 4.36 billion total, with 4.59 billion as their total liabilities.
PAG were able to record 196.9 million as free cash flow during the 07/29/2021 quarter of the year, this saw their quarterly net cash flow reduce by 45.1 million. In cash movements, the company had a total of 239.3 million as operating cash flow.
Potential earnings growth for Penske Automotive Group Inc. (PAG)
In order to determine the future investment potential for this stock, we will have to analyze key trends that affect it. During the 07/29/2021 quarter of the year, Penske Automotive Group Inc. recorded a total of 5.77 billion in revenue. This figure implies that they witnessed a quarterly year/year change in their earnings with 13.24% coming in sequential stages and their sales for the 07/29/2021 quarter reducing by -0.66%.
What matters though is how it ends. When the core data for the company is broken down, then the stock sounds interesting. The company spent 4.86 billion trying to sell their products during the last quarter, with the result yielding a gross income of 913.2 million. This allows shareholders to hold on to 80.60M with the recently reported earning now reading 2.26 cents per share. This is a figure that compared to analyst’s prediction for their 07/29/2021 (2.26 cents a share).
Having a look at the company’s valuation, the company is expected to record 8.84 total earnings per share during the next fiscal year. It is very important though to remember that the importance of trend far outweighs that of outlook. This analysis has been great and getting further updates on PAG sounds very interesting.
Is the stock of PAG attractive?
In related news, Chair & CEO, PENSKE ROGER S sold 8,500 shares of the company’s stock in a transaction that recorded on Jun 03. The sale was performed at an average price of 82.35, for a total value of 699,975. As the sale deal closes, the Chair & CEO, PENSKE ROGER S now sold 12,313 shares of the company’s stock, valued at 1,050,422. Also, President, KURNICK ROBERT H JR sold 8,601 shares of the company’s stock in a deal that was recorded on Jun 02. The shares were price at an average price of 84.73 per share, with a total market value of 728,731. Following this completion of acquisition, the EVP, Gen. Counsel & Sec., Spradlin Shane M. now holds 1,265 shares of the company’s stock, valued at 108,158. In the last 6 months, insiders have changed their ownership in shares of company stock by 1.50%.
6 out of 10 analysts covering the stock have rated it a Buy, while 3 have maintained a Hold recommendation on Penske Automotive Group Inc.. 0 analysts has assigned a Sell rating on the PAG stock. The 12-month mean consensus price target for the company’s shares has been set at $101.80.