Penske Automotive Group Stock Buy Hold or Sell Recommendation
| PAG Stock | USD 160.91 3.68 2.34% |
Considering the 90-day investment horizon and your above-average risk tolerance, our recommendation regarding Penske Automotive Group is 'Strong Hold'. Macroaxis provides Penske Automotive buy-hold-or-sell recommendation only in the context of selected investment horizon and investor attitude towards risk assumed by holding PAG positions.
Check out Penske Automotive Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool. Note, we conduct extensive research on individual companies such as Penske and provide practical buy, sell, or hold advice based on investors' constraints. Penske Automotive Group. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in nation.
Penske |
Execute Penske Automotive Buy or Sell Advice
The Penske recommendation should be used to complement the buy-or-sell advice compiled from the current analysts' consensus on Penske Automotive Group. Macroaxis does not own or have any residual interests in Penske Automotive Group or other equities on which the buy-or-sell advice is provided. Please provide your input below to execute Penske Automotive's advice using the current market data and latest reported fundamentals.
Time Horizon
Risk Tolerance
 |  |
Strong Hold
Market Performance | Very Weak | Details | |
Volatility | Very steady | Details | |
Hype Condition | Low key | Details | |
Current Valuation | Fairly Valued | Details | |
Odds Of Distress | Very Small | Details | |
Economic Sensitivity | Responds to the market | Details | |
Investor Sentiment | Impartial | Details | |
Analyst Consensus | Buy | Details | |
Financial Strenth (F Score) | Strong | Details | |
Financial Leverage | Not Rated | Details | |
Reporting Quality (M-Score) | Possible Manipulator | Details |
Penske Automotive Trading Alerts and Improvement Suggestions
| Penske Automotive generated a negative expected return over the last 90 days | |
| Penske Automotive is unlikely to experience financial distress in the next 2 years | |
| Penske Automotive Group has 7.74 B in debt with debt to equity (D/E) ratio of 1.6, which is OK given its current industry classification. Penske Automotive has a current ratio of 0.96, suggesting that it has not enough short term capital to pay financial commitments when the payables are due. Note however, debt could still be an excellent tool for Penske to invest in growth at high rates of return. | |
| Penske Automotive has a strong financial position based on the latest SEC filings | |
| Over 76.0% of Penske Automotive shares are owned by institutional investors | |
| Latest headline from finance.yahoo.com: dynaCERT Appoints Doug Seneshen as Director, Expanding Global Sales Oversight Team |
Penske Automotive Returns Distribution Density
The distribution of Penske Automotive's historical returns is an attempt to chart the uncertainty of Penske Automotive's future price movements. The chart of the probability distribution of Penske Automotive daily returns describes the distribution of returns around its average expected value. We use Penske Automotive Group price's Value At Risk and its Upside Potential as a relative measure of the distribution. The graph of the distribution of Penske Automotive returns is essential to provide solid investment advice for Penske Automotive.
| Mean Return | -0.04 | Value At Risk | -2.44 | Potential Upside | 2.50 | Standard Deviation | 1.53 |
Return Density |
| Distribution |
Investment risk management requires an estimate of the probability of extreme price changes. Therefore, the correct representation of the distribution of Penske Automotive historical returns presented in an easy-to-digest graphical form helps investors and money managers understand the risk-reward trade-off of different investement strategies.
Penske Stock Institutional Investors
| Shares | Geode Capital Management, Llc | 2024-06-30 | 315.7 K | Amvescap Plc. | 2024-06-30 | 271.6 K | Bank Of New York Mellon Corp | 2024-06-30 | 243.5 K | American Century Companies Inc | 2024-09-30 | 221.1 K | Bruni J V & Co | 2024-09-30 | 196.4 K | Private Management Group Inc | 2024-09-30 | 189.7 K | Horizon Asset Management Inc/ny | 2024-09-30 | 181.5 K | First Trust Advisors L.p. | 2024-06-30 | 156 K | Brandywine Global Investment Mgmt Llc | 2024-06-30 | 152 K | Blackrock Inc | 2024-06-30 | 2.4 M | Vanguard Group Inc | 2024-09-30 | 2 M |
Penske Automotive Cash Flow Accounts
| 2019 | 2020 | 2021 | 2022 | 2023 | 2024 (projected) | ||
| Change To Inventory | (117.8M) | 805.4M | 402.6M | (444.4M) | (666.2M) | (632.9M) | |
| Change In Cash | (11.3M) | 21.4M | 51.2M | 5.8M | (10.1M) | (9.6M) | |
| Free Cash Flow | 273.3M | 1.0B | 1.0B | 1.2B | 718.3M | 754.2M | |
| Depreciation | 109.6M | 115.5M | 121.5M | 127.3M | 141M | 148.1M | |
| Other Non Cash Items | (300K) | (400K) | (1.3M) | (183.3M) | (156.4M) | (148.6M) | |
| Capital Expenditures | 245.3M | 185.9M | 248.9M | 282.5M | 375.3M | 194.3M | |
| Net Income | 435.1M | 545.3M | 1.2B | 1.4B | 1.1B | 1.1B | |
| End Period Cash Flow | 28.1M | 49.5M | 100.7M | 106.5M | 96.4M | 101.2M | |
| Dividends Paid | 130.8M | 68.1M | 142.5M | 154.1M | 189.1M | 198.6M | |
| Change Receivables | (30.9M) | 152.7M | 75.6M | (192.9M) | (221.8M) | (210.7M) | |
| Net Borrowings | 130M | (689.5M) | (218.5M) | 159.8M | 143.8M | 151.0M | |
| Change To Netincome | (2.6M) | 79.2M | (38.7M) | (59.1M) | (53.2M) | (50.5M) | |
| Investments | 18.9M | (136.5M) | (623.1M) | (641.7M) | (519.1M) | (545.1M) |
Penske Automotive Greeks
Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to Penske Automotive or Specialty Retail sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that Penske Automotive's price will be affected by overall stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a Penske stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
α | Alpha over Dow Jones | -0.16 | |
β | Beta against Dow Jones | 1.26 | |
σ | Overall volatility | 1.53 | |
Ir | Information ratio | -0.09 |
Penske Automotive Volatility Alert
Penske Automotive Group exhibits very low volatility with skewness of 0.0 and kurtosis of 0.9. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Penske Automotive's stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Penske Automotive's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different financial instruments as prices fall.Penske Automotive Fundamentals Vs Peers
Comparing Penske Automotive's fundamentals to the average values of its peers is one of the most widely used and accepted methods of equity analyses. It helps to analyze Penske Automotive's direct or indirect competition across all of the common fundamentals between Penske Automotive and the related equities. This way, we can detect undervalued stocks with similar characteristics as Penske Automotive or determine the stocks which would be an excellent addition to an existing portfolio. Peer analysis of Penske Automotive's fundamental indicators could also be used in its relative valuation, which is a method of valuing Penske Automotive by comparing valuation metrics with those of similar companies.
| Better Than Average | Worse Than Average | Compare Penske Automotive to competition |
| Fundamentals | Penske Automotive | Peer Average |
| Return On Equity | 0.18 | -0.31 |
| Return On Asset | 0.0506 | -0.14 |
| Profit Margin | 0.03 % | (1.27) % |
| Operating Margin | 0.04 % | (5.51) % |
| Current Valuation | 19.03 B | 16.62 B |
| Shares Outstanding | 66.77 M | 571.82 M |
| Shares Owned By Insiders | 21.05 % | 10.09 % |
| Shares Owned By Institutions | 75.56 % | 39.21 % |
| Number Of Shares Shorted | 1.2 M | 4.71 M |
| Price To Earning | 6.11 X | 28.72 X |
| Price To Book | 2.04 X | 9.51 X |
| Price To Sales | 0.35 X | 11.42 X |
| Revenue | 29.53 B | 9.43 B |
| Gross Profit | 4.84 B | 27.38 B |
| EBITDA | 1.53 B | 3.9 B |
| Net Income | 1.05 B | 570.98 M |
| Cash And Equivalents | 106.5 M | 2.7 B |
| Cash Per Share | 1.25 X | 5.01 X |
| Total Debt | 7.74 B | 5.32 B |
| Debt To Equity | 1.60 % | 48.70 % |
| Current Ratio | 0.98 X | 2.16 X |
| Book Value Per Share | 77.93 X | 1.93 K |
| Cash Flow From Operations | 1.09 B | 971.22 M |
| Short Ratio | 7.77 X | 4.00 X |
| Earnings Per Share | 13.06 X | 3.12 X |
| Price To Earnings To Growth | 5.05 X | 4.89 X |
| Target Price | 169.95 | |
| Number Of Employees | 28.95 K | 18.84 K |
| Beta | 1.17 | -0.15 |
| Market Capitalization | 10.5 B | 19.03 B |
| Total Asset | 15.67 B | 29.47 B |
| Retained Earnings | 4.99 B | 9.33 B |
| Working Capital | 21.8 M | 1.48 B |
Note: Disposition of 618 shares by Ronald Steinhart of Penske Automotive subject to Rule 16b-3 [view details]
Penske Automotive Market Momentum
Traders often use several daily momentume indicators to supplement a more traditional technical analysis when analyzing securities such as Penske . With many different options, investors must choose the best indicators for them and familiarize themselves with how they work. We suggest combining traditional momentum indicators with more near-term forms of technical analysis such as Accumulation Distribution or Daily Balance Of Power. With their quantitative nature, daily value technical indicators can also be incorporated into your automated trading systems.
About Penske Automotive Buy or Sell Advice
When is the right time to buy or sell Penske Automotive Group? Buying financial instruments such as Penske Stock isn't very hard. However, what challenging for most investors is doing it at the right time to beat the market. Proper market timing is something most people cannot do without sophisticated tools, which help to isolate the right opportunities. Macroaxis provides hands-on modules to deliver winning trades and diversify your portfolios on a daily basis. Most of our advising modules are very easy to use and apply.
Please read more on our stock advisor page.
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Check out Penske Automotive Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool. You can also try the Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
Is Automotive Retail space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Penske Automotive. If investors know Penske will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Penske Automotive listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth (0.14) | Dividend Share 4.09 | Earnings Share 13.06 | Revenue Per Share 447.96 | Quarterly Revenue Growth 0.019 |
The market value of Penske Automotive is measured differently than its book value, which is the value of Penske that is recorded on the company's balance sheet. Investors also form their own opinion of Penske Automotive's value that differs from its market value or its book value, called intrinsic value, which is Penske Automotive's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Penske Automotive's market value can be influenced by many factors that don't directly affect Penske Automotive's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Penske Automotive's value and its price as these two are different measures arrived at by different means. Investors typically determine if Penske Automotive is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Penske Automotive's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.