Penske Automotive Group Stock Buy Hold or Sell Recommendation
| PAG Stock | USD 147.94 0.46 0.31% |
Considering the 90-day investment horizon and your typical level of risk aversion, our recommendation regarding Penske Automotive Group is '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. The advice algorithm takes into account all of Penske Automotive's available fundamental, technical, and predictive indicators you will find on this site. Key drivers impacting Penske Automotive's buy or sell advice are summarized below:
Real Value 155.94 | Target Price 161.33 | Hype Value 147.44 | Market Value 147.94 |
A buy or sell recommendation provided by Macroaxis is an automated directive regarding whether to purchase or sell Penske Automotive Group given historical horizon and risk tolerance towards Penske Automotive. When Macroaxis issues a 'buy' or 'sell' recommendation for Penske Automotive Group, the advice is generated through an automated system that utilizes algorithms and statistical models.
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
 |  |
Hold
Market Performance | Very Weak | Details | |
Volatility | Very steady | Details | |
Hype Condition | Low key | Details | |
Current Valuation | Undervalued | Details | |
Odds Of Distress | Very Small | Details | |
Economic Sensitivity | Actively responds to the market | Details | |
Investor Sentiment | Alarmed | Details | |
Analyst Consensus | Buy | Details | |
Financial Strenth (F Score) | Healthy | 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 | |
| The company has 4.05 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. Debt can assist Penske Automotive until it has trouble settling it off, either with new capital or with free cash flow. So, Penske Automotive's shareholders could walk away with nothing if the company can't fulfill its legal obligations to repay debt. However, a more frequent occurrence is when companies like Penske Automotive sell additional shares at bargain prices, diluting existing shareholders. Debt, in this case, can be an excellent and much better tool for Penske to invest in growth at high rates of return. When we think about Penske Automotive's use of debt, we should always consider it together with cash and equity. | |
| Over 77.0% of Penske Automotive shares are owned by institutional investors | |
| On 1st of March 2024 Penske Automotive paid $ 0.87 per share dividend to its current shareholders | |
| Latest headline from finance.yahoo.com: This Is the No. 1 Retail Store in Every State |
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 | -0.0064 | Value At Risk | -2.77 | Potential Upside | 2.83 | Standard Deviation | 1.48 |
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
Have you ever been surprised when a price of an equity instrument such as Penske Automotive is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading Penske Automotive Group backward and forwards among themselves. Penske Automotive's institutional investor refers to the entity that pools money to purchase Penske Automotive's securities or originates loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.
| Shares | American Century Companies Inc | 2023-12-31 | 326.3 K | Geode Capital Management, Llc | 2023-12-31 | 303.3 K | Amvescap Plc. | 2023-12-31 | 269.8 K | Bank Of New York Mellon Corp | 2023-12-31 | 253.3 K | Bruni J V & Co | 2023-12-31 | 218.1 K | Private Management Group Inc | 2023-12-31 | 217.4 K | Norges Bank | 2023-12-31 | 192.2 K | Horizon Asset Management Inc/ny | 2023-12-31 | 189.5 K | T. Rowe Price Associates, Inc. | 2023-12-31 | 188.9 K | Dimensional Fund Advisors, Inc. | 2023-12-31 | 2 M | Vanguard Group Inc | 2023-12-31 | 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 | 58.6M | 55.7M | |
| Depreciation | 109.6M | 115.5M | 121.5M | 127.3M | 141M | 148.1M | |
| Other Non Cash Items | (300K) | (400K) | (1.3M) | (183.3M) | (105M) | (99.8M) | |
| 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) | (179.6M) | |
| 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 NYSE Composite | -0.11 | |
β | Beta against NYSE Composite | 1.66 | |
σ | Overall volatility | 1.50 | |
Ir | Information ratio | -0.05 |
Penske Automotive Volatility Alert
Penske Automotive Group exhibits very low volatility with skewness of -0.42 and kurtosis of 1.45. 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 | 0.24 | -0.31 |
| Return On Asset | 0.0584 | -0.14 |
| Profit Margin | 0.04 % | (1.27) % |
| Operating Margin | 0.04 % | (5.51) % |
| Current Valuation | 17.64 B | 16.62 B |
| Shares Outstanding | 67.05 M | 571.82 M |
| Shares Owned By Insiders | 21.06 % | 10.09 % |
| Shares Owned By Institutions | 77.36 % | 39.21 % |
| Number Of Shares Shorted | 2.6 M | 4.71 M |
| Price To Earning | 6.11 X | 28.72 X |
| Price To Book | 2.13 X | 9.51 X |
| Price To Sales | 0.34 X | 11.42 X |
| Revenue | 29.53 B | 9.43 B |
| Gross Profit | 4.84 B | 27.38 B |
| EBITDA | 1.4 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 | 4.05 B | 5.32 B |
| Debt To Equity | 1.60 % | 48.70 % |
| Current Ratio | 0.98 X | 2.16 X |
| Book Value Per Share | 70.42 X | 1.93 K |
| Cash Flow From Operations | 433.9 M | 971.22 M |
| Short Ratio | 14.23 X | 4.00 X |
| Earnings Per Share | 15.50 X | 3.12 X |
| Price To Earnings To Growth | 2.08 X | 4.89 X |
| Target Price | 166.65 | |
| Number Of Employees | 28 K | 18.84 K |
| Beta | 1.21 | -0.15 |
| Market Capitalization | 9.89 B | 19.03 B |
| Total Asset | 16.4 B | 29.47 B |
| Retained Earnings | 4.99 B | 9.33 B |
| Working Capital | 21.8 M | 1.48 B |
Note: Disposition of 1600 shares by John Barr of Penske Automotive at 154.05 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.
| Accumulation Distribution | 4999.48 | |||
| Daily Balance Of Power | 0.1156 | |||
| Rate Of Daily Change | 1.0 | |||
| Day Median Price | 147.57 | |||
| Day Typical Price | 147.69 | |||
| Price Action Indicator | 0.6 | |||
| Period Momentum Indicator | 0.46 |
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.| 2021 | 2022 | 2023 | 2024 (projected) | Short and Long Term Debt Total | 6.4B | 7.0B | 4.1B | 3.5B | Total Assets | 13.5B | 14.1B | 16.4B | 17.2B |
Use Investing Ideas to Build Portfolios
In addition to having Penske Automotive in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
Run Corporate Bonds Funds Thematic Idea Now
Corporate Bonds Funds
Funds or Etfs investing in different types of corporate debt instruments. The Corporate Bonds Funds theme has 47 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Corporate Bonds Funds Theme or any other thematic opportunities.
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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. Note that the Penske Automotive information on this page should be used as a complementary analysis to other Penske Automotive's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
Complementary Tools for Penske Stock analysis
When running Penske Automotive's price analysis, check to measure Penske Automotive's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Penske Automotive is operating at the current time. Most of Penske Automotive's value examination focuses on studying past and present price action to predict the probability of Penske Automotive's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Penske Automotive's price. Additionally, you may evaluate how the addition of Penske Automotive to your portfolios can decrease your overall portfolio volatility.
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Is Penske Automotive's industry 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 (0.33) | Dividend Share 3.04 | Earnings Share 15.5 | Revenue Per Share 434.457 | Quarterly Revenue Growth 0.037 |
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.