Benchmark Co. analyst Michael Albanese has maintained their bullish stance on PAG stock, giving a Buy rating on August 19.
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Michael Albanese has given his Buy rating due to a combination of factors that highlight Penske Automotive Group’s strong operational performance and strategic positioning. The company benefits from a diversified portfolio and has demonstrated commendable operational execution, even in the face of mixed results in the second quarter of 2025. Despite a decline in retail volumes, primarily due to optimization efforts in the U.K., Penske has managed to achieve gains in gross profit per unit through a premium mix and healthy inventory levels.
Additionally, Penske’s cost discipline is evident as it maintains gross margins above 16.5% for eight consecutive quarters, with improvements in general and administrative leverage and pre-tax margins. The company is supported by low leverage and ample liquidity, which allows for sustainable free cash flow. This financial stability enables strong capital returns through buybacks and a growing dividend. Furthermore, the stabilization of PTG sales and the removal of Daimler OEM allocation limits present potential upside for the future, while a healthy M&A pipeline and rising PTS cash flow offer additional avenues for shareholder value enhancement.
In another report released on August 19, Citi also maintained a Buy rating on the stock with a $200.00 price target.
Based on the recent corporate insider activity of 30 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of PAG in relation to earlier this year.