Stock market today: S&P 500 climbs as health care, tech gain; Nvidia earnings loom
BLOOMFIELD HILLS - Penske Automotive Group, Inc. (NYSE: NYSE:PAG), a global player in the transportation services industry, has broadened its reach in North America with the acquisition of Bill Brown Ford, located in Livonia, Michigan. The move, announced today, is expected to bring an additional $550 million in estimated annualized revenue to the company.
Bill Brown Ford, which has been recognized with the Ford President's Award 18 times, is situated in Michigan's most populous county and includes over 200,000 square feet of facilities spread over 29 acres. The acquisition encompasses a main dealership, a pre-owned vehicle facility, a fleet maintenance center, and a collision center.
Rich Shearing, North American Operations Officer of Penske Automotive Group, commented on the expansion, stating, "We are pleased to expand our retail automotive footprint in the Midwestern U.S. and our relationship with Ford." He emphasized the dealership's legacy of community engagement and customer service excellence, expressing enthusiasm for continuing these traditions under the Penske umbrella.
Penske Automotive Group has been on an aggressive expansion drive, with acquisitions year-to-date in 2024 representing nearly $2 billion in estimated annualized revenue. The company, headquartered in Bloomfield Hills, Michigan, operates on a global scale with dealerships in the United States, the United Kingdom, Canada, Germany, Italy, Japan, and Australia, and is a significant retailer of commercial trucks in North America.
The financial details of the acquisition were not disclosed in the press release.
In other recent news, Penske Automotive Group has been experiencing steady growth, as revealed in their Q1 2024 earnings report. The company posted a 2% increase in revenue, reaching $7.4 billion, and sold a total of 126,800 new and used vehicles. The net income stood at $215 million, with earnings per share of $3.21. These results were achieved despite various challenges, including product recalls and a strike at a plant in Mexico.
On the other hand, CDK Global (NASDAQ:CDK) Inc. recently faced a cyberattack that disrupted operations for auto dealerships across the United States. The hacker group, believed to be from Eastern Europe, has demanded a multimillion-dollar ransom, although the exact amount has not been disclosed. The impact of this attack was felt by several auto retailers, including Sonic Automotive (NYSE:SAH) Inc., Penske Automotive Group Inc ., and Ford Motor Company (NYSE:F).
In addition, Premier Truck Group, a subsidiary of Penske Automotive, recently expanded its footprint by acquiring River States Truck and Trailer, Inc. This acquisition is expected to contribute an additional $200 million in estimated annualized revenue. The growth strategy also includes the expansion of its heavy truck collision network.
Lastly, Penske Automotive Group's Board of Directors has approved a 10% increase in the company's quarterly cash dividend, reflecting the company's robust financial position and consistent cash flow generation. The new dividend of $0.96 per share is scheduled for payment to shareholders on record.
InvestingPro Insights
In light of Penske Automotive Group's (NYSE: PAG) recent acquisition of Bill Brown Ford, key financial metrics and expert analysis from InvestingPro provide a deeper understanding of the company's performance and prospects. With a market capitalization of $10.39 billion and a robust P/E ratio of 10.88, Penske Automotive Group showcases a strong position in the market. The company's revenue growth over the last twelve months stands at 5.17%, indicating a steady upward trajectory in its financial performance.
An InvestingPro Tip highlights that Penske Automotive Group has raised its dividend for 3 consecutive years, reflecting a commitment to returning value to shareholders. Additionally, the company has maintained dividend payments for 14 consecutive years, which is a testament to its financial stability and shareholder-friendly approach. Furthermore, analysts predict the company will be profitable this year, underpinning the positive outlook on the company's financial health.
Investors looking for more insights can find additional InvestingPro Tips for Penske Automotive Group at https://www.investing.com/pro/PAG. Currently, there are 11 additional tips available, which can help investors make informed decisions. For those interested in a deeper dive, use coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.