Stock market today: S&P 500 climbs as health care, tech gain; Nvidia earnings loom
Penske Automotive Group Inc . (NYSE:PAG) stock has reached a 52-week low, trading at $139.53. According to InvestingPro data, the company maintains strong fundamentals with a ’GOOD’ Financial Health score and has consistently paid dividends for 15 consecutive years. This latest price point marks a significant dip for the automotive retailer, though the company maintains healthy financials with a P/E ratio of 10.2 and an EBITDA of $1.47 billion. Despite market challenges, PAG has demonstrated resilience with a 54% dividend growth in the last twelve months. Investors are closely monitoring the stock as it navigates through market fluctuations and industry-specific headwinds. The 52-week low serves as a critical threshold for the company, with analysts setting price targets ranging from $140 to $206. InvestingPro analysis suggests the stock is currently fairly valued, with additional insights available in the comprehensive Pro Research Report, which covers what really matters for informed investment decisions.
In other recent news, Penske Automotive Group reported fourth-quarter earnings for 2024 that exceeded analyst expectations, with an earnings per share (EPS) of $3.54, surpassing the forecasted $3.30. The company’s revenue reached $7.72 billion, a 6% increase from the previous year, and exceeded consensus estimates by $120 million. The Automotive Retail segment drove this revenue growth, accounting for 87% of the total revenue in the quarter. CFRA analyst Garrett Nelson raised Penske’s price target to $140 from $130 but maintained a Sell rating, citing the stock’s premium trading compared to its peers. Nelson noted a slowdown in share repurchase activity, with only $59 million in buybacks in 2024, compared to $359 million in 2023. Penske’s consistent gross margin of 16.3% for six consecutive quarters reflects effective cost management. The company also announced a $0.03 increase in its quarterly dividend, marking the seventeenth consecutive increase.
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