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BLOOMFIELD HILLS, Mich. - Penske Automotive Group, Inc. (NYSE: PAG), known for its global transportation services and automotive retailing, has declared an increase in its quarterly dividend and an expansion of its securities repurchase program. The company’s Board of Directors announced a 3.3% rise in the dividend, now $1.26 per share, marking the 18th consecutive quarterly increase. According to InvestingPro data, PAG has maintained dividend payments for 15 consecutive years, with an impressive 40% dividend growth over the last twelve months. The current dividend yield stands at 2.94%. Shareholders on record as of May 27, 2025, will be eligible for the dividend payable on June 3, 2025.
In addition to the dividend raise, Penske Automotive has also received approval from its Board to enhance its securities repurchase authorization by $250 million, totaling a current authorization of $295.8 million. With a market capitalization of $10.85 billion and an InvestingPro Financial Health Score rated as "GOOD," the company demonstrates strong financial positioning. The company may repurchase its common stock or debt through various means, including open market transactions, privately negotiated deals, tender offers, pre-arranged trading plans, accelerated share repurchase programs, or other methods.
Penske Automotive operates dealerships across several countries, including the United States, the United Kingdom, Canada, Germany, Italy, Japan, and Australia. As a prominent player in the Specialty Retail industry, the company generated revenues of $30.6 billion in the last twelve months, with a healthy gross profit margin of 16.45%. It is also a significant retailer of commercial trucks in North America and provides a range of related services. The company employs more than 28,700 people worldwide and holds a 28.9% stake in Penske Transportation Solutions, which possesses a substantial trucking fleet in North America and employs over 44,500 individuals globally.
The information for this article is based on a press release statement from Penske Automotive Group. The forward-looking statements in the press release are subject to various risks and uncertainties that could cause actual results to differ materially from expectations. These risks include changes in economic conditions, consumer demand, and supply chain disruptions, among others. According to InvestingPro analysis, which provides comprehensive research reports for over 1,400 US stocks, five analysts have recently revised their earnings estimates upward for the upcoming period, suggesting positive sentiment about the company’s near-term prospects. Penske Automotive Group has cautioned readers to consider these factors alongside additional information when evaluating the company’s future performance.
In other recent news, Penske Automotive Group reported its financial results for the first quarter of 2025, showcasing a mixed performance. The company delivered an adjusted earnings per share (EPS) of $3.39, surpassing the forecasted $3.23, while revenue reached a record $7.6 billion, which was below the expected $7.71 billion. Despite the earnings beat, the revenue shortfall reflects ongoing challenges in the market. Penske Automotive highlighted that Battery Electric Vehicle (BEV) sales accounted for 8.5% of new vehicle sales, reflecting a growing trend in the automotive sector. The company also mentioned potential impacts from tariffs, which could affect vehicle pricing and profitability. Analysts have not made any recent upgrades or downgrades to Penske Automotive’s stock, but the company remains focused on its diversified strategy to navigate market uncertainties. Penske’s CEO, Roger Penske, emphasized the importance of operational efficiency and strategic diversification in maintaining the company’s resilience.
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