Lithia zigs toward older used cars while others zag
Lithia Motors is adopting a strategy of focusing on older used cars, encouraging its dealerships to acquire and sell vehicles aged nine years or older, and to price them higher even if they take longer to sell. This approach contrasts sharply with competitors like Penske Automotive and AutoNation, who are hesitant about older used cars due to reconditioning costs and potential reliability issues. Lithia CEO Bryan DeBoer believes there's an underserved market for these "Value Autos" and is working to re-educate dealers who may be underpricing them.
Lithia zigs toward older used cars while others zag
Lithia Motors is actively encouraging its dealerships to sell more used cars that are 9 years old or older, with CEO Bryan DeBoer stating that some stores are underpricing these "Value Autos." This strategy contrasts sharply with competitors like AutoNation and Penske Automotive, who are hesitant about older used vehicles due to reconditioning costs, reliability concerns, and potential customer dissatisfaction. Despite a slight dip in its "Value Autos" sales mix in Q4 2025, Lithia reported record revenue of $37.6 billion in 2025, emphasizing their commitment to this segment.
Penske Automotive Group's Q4 Earnings Call: Our Top 5 Analyst Questions
Penske Automotive Group's Q4 CY2025 results saw revenue beat expectations but adjusted EPS and EBITDA miss, with U.S. operations performing better than international and commercial truck segments. The earnings call highlighted key analyst questions covering Chinese auto brand integration, tax provision impacts, truck market recovery, luxury sales trends, and used vehicle gross profit drivers. Future catalysts include monitoring the commercial truck market, European brand integration, and service revenue growth.
Penske Automotive saw premium luxury sales miss targets in Q4 2025
Penske Automotive Group experienced a shortfall in premium luxury sales targets in Q4 2025, primarily due to tariff disruptions, customers pulling ahead EV purchases, and a weak operating environment in the United Kingdom. Despite this, the company reported record fourth-quarter and full-year revenue and gross profit in its retail automotive parts and service segment. Looking forward, Penske Automotive anticipates an increase in lease maturities and new vehicle lease penetration in 2026.
Penske Automotive saw premium luxury sales miss targets in Q4 2025
Penske Automotive Group experienced a shortfall in its premium luxury sales targets for Q4 2025, primarily due to tariff disruptions, customers accelerating battery-electric vehicle purchases, and a challenging operating environment in the UK. Despite overall sales increases for BMW and Mercedes-Benz in the US for the full year 2025, Penske's Q4 new sales of German luxury brands, especially EVs, were down significantly. The company reported a 25.4% drop in net income for Q4 2025, though its retail automotive parts and service segment achieved record revenue and gross profit.
Penske Automotive Group (NYSE:PAG) Has Announced That It Will Be Increasing Its Dividend To $1.40
Penske Automotive Group (NYSE:PAG) has announced an increase in its dividend to $1.40, resulting in an attractive 3.3% yield. The dividend is well-covered by both cash flow and earnings, with a projected payout ratio of 39% for the next year. Despite past dividend cuts, the company's strong earnings per share growth of 16% annually over the last five years suggests future dividend sustainability and potential for further increases.
Penske Automotive Acquires Southwest Dealerships
Penske Automotive Group has completed the acquisition of a 91% majority stake in The Around the Clock Freightliner Group (ATC), a heavy and medium-duty truck dealership group. This acquisition is expected to add up to $700 million in annualized revenue and generate 12 to 14 cents per share for Penske Automotive. ATC operates 14 locations across Texas, Oklahoma, and New Mexico, offering Freightliner, Western Star, and Sprinter branded trucks, along with parts, service, and used trucks.
Penske Q4 Earnings Miss Expectations, Dividend Raised
Penske Automotive Group (PAG) reported Q4 2025 adjusted earnings of $2.91 per share, missing the Zacks Consensus Estimate, despite net sales of $7.77 billion which beat expectations. The company also announced its 21st consecutive quarterly dividend increase to $1.40 per share, payable on March 5, 2026. This performance comes as the company maintained a Zacks Rank #3 (Hold) and saw varied results across its automotive, commercial truck, and commercial vehicle distribution segments.
Assessing Penske Automotive Group (PAG) Valuation After Recent Share Price Momentum
Penske Automotive Group (PAG) has gained investor attention due to recent share price momentum. The company appears slightly undervalued, with a fair value estimate of $180.33, primarily driven by record growth in service and parts revenue from an aging vehicle fleet. While the stock trades at a P/E ratio slightly above peers, it remains below the industry average, suggesting potential for multiple expansion.
Penske Automotive Group, Inc. (NYSE:PAG) Q4 2025 Earnings Call Transcript
Penske Automotive Group (NYSE:PAG) reported its Q4 2025 earnings, with EPS missing expectations at $2.91 against a projected $3.19. The company's performance was impacted by challenges including weaker premium sales in the U.S. and U.K., cyber incidents, and macroeconomic conditions, particularly in the commercial truck segment. Despite these headwinds, PAG generated $31 billion in revenue for the year, increased its quarterly dividend for the 21st consecutive time, and made strategic acquisitions in Toyota, Lexus, and Ferrari dealerships, while divesting non-strategic assets.
Penske Automotive Group (PAG) Margin Holds At 3.1% And Keeps Bullish Narrative In Play
Penske Automotive Group (PAG) recently reported Q3 FY2025 results with revenue of $7.7 billion and a 3.1% net profit margin, slightly up from 2.9% a year ago. The company's 12.1x trailing P/E ratio is below the US Specialty Retail average, supporting a bullish outlook despite forecasts for future margin compression. Although concerns exist regarding debt coverage and an unstable dividend, proponents highlight strong earnings growth and valuation appeal.
Penske Automotive Group (NYSE:PAG) Posts Better-Than-Expected Sales In Q4 CY2025
Penske Automotive Group (NYSE:PAG) reported better-than-expected revenue in Q4 CY2025, reaching $7.77 billion, though sales remained flat year-on-year. Despite the revenue beat, GAAP profit per share missed analyst estimates by 6.4%, and adjusted EBITDA also fell short. The company's same-store sales declined by 4% year-on-year, indicating challenges in existing locations, although its store count has grown over the past two years.
Penske Automotive Group Q4 2025 Earnings Call Insights
Penske Automotive Group demonstrated robust profitability in 2025 with $31 billion in revenue and $1.3 billion in earnings before taxes, driven by strong vehicle deliveries. The company expanded its premium market presence through strategic acquisitions, including Toyota, Lexus, and Ferrari dealerships, projected to add $2 billion in annual revenue. Penske also announced its 21st consecutive dividend increase to $1.40 per share and expressed an optimistic outlook for 2026, anticipating a recovery in the commercial truck market and positive impacts from tax refunds and lower interest rates.
What's Going On With Penske Automotive Stock Today?
Penske Automotive Group (NYSE: PAG) shares rose after the company reported mixed Q4 results, with strong revenue but softer profitability. Investors focused on management's growth strategy and capital return moves amid a challenging market. The company also announced a 1.4% increase in its quarterly dividend, marking its 21st consecutive quarterly increase.
Penske Automotive Group (NYSE:PAG) Posts Quarterly Earnings Results, Misses Estimates By $0.39 EPS
Penske Automotive Group (NYSE:PAG) announced its quarterly earnings, reporting $2.91 EPS, which missed analyst estimates by $0.39. Despite the earnings miss, the company's revenue of $7.77 billion exceeded expectations, though it was down 3.8% year-over-year. Shares saw a jump of $9.59 to $173.99 after the announcement, and the stock currently holds a "Moderate Buy" consensus rating from analysts with an average target price of $183.71.
Penske Automotive Group Reports $31.8B in 2025 Revenue, Net Income of $935.4M
Penske Automotive Group reported $31.8 billion in revenue for 2025, with a net income of $935.4 million, reflecting a decrease from $968.9 million in 2024. For the fourth quarter of 2025, revenue was $7.8 billion, down from $8.1 billion in the prior year, with net income attributable to common stockholders at $186.1 million compared to $249.3 million. Chairman Roger Penske highlighted the diversified model's resilience, strong service and parts segments, and recent strategic acquisitions.
PENSKE AUTOMOTIVE GROUP INC (NYSE:PAG) Stock Falls on Q4 2025 Earnings Miss
Penske Automotive Group (NYSE: PAG) reported mixed Q4 2025 financial results, with revenue surpassing expectations but earnings per share falling short, leading to a 4.5% pre-market stock decline. Despite the earnings miss, the company highlighted strong performance in high-margin service and parts revenue. Analysts are forecasting 2026 revenue of approximately $31.94 billion and EPS of $14.03.
Penske Automotive Group (NYSE:PAG) Posts Better-Than-Expected Sales In Q4 CY2025
Penske Automotive Group (NYSE:PAG) reported better-than-expected revenue of $7.77 billion in Q4 CY2025, beating analyst estimates by 2.2%, although sales were flat year-on-year. The company's GAAP EPS of $2.83 missed consensus estimates by 6.4%, and Adjusted EBITDA also fell short. Same-store sales declined by 4% year-on-year, indicating a weaker quarter despite the revenue beat.
PENSKE AUTOMOTIVE GROUP ($PAG) Releases Q4 2025 Earnings
Penske Automotive Group ($PAG) reported its Q4 2025 earnings, missing analysts' earnings per share estimates but exceeding revenue expectations. The article also details recent insider trading activity, showing more sales than purchases, and highlights hedge fund movements, with several firms adding significant shares while others reduced their positions. Additionally, it provides an overview of recent analyst ratings and price targets for PAG stock.
Penske: Q4 Earnings Snapshot
Penske Automotive Group Inc. reported fourth-quarter earnings of $186.1 million, or $2.83 per share, which adjusted to $2.91 per share, falling short of analyst expectations of $3.19 per share. Despite missing earnings estimates, the auto dealership chain exceeded revenue forecasts, posting $7.77 billion against an expected $7.64 billion. For the full year, Penske reported a profit of $935.4 million on revenues of $31.81 billion.
Penske Automotive earnings on deck as dealership margins face test By Investing.com
Penske Automotive Group is set to report its fourth-quarter earnings, with analysts expecting declines in EPS and revenue compared to the previous quarter. The company faces challenges from a softening automotive market, emphasizing the importance of aftersales performance and operational leverage. Investors are cautious following a Q3 earnings miss, and the upcoming report will clarify whether this indicates a trend or an anomaly, while the company continues its acquisition strategy.
Alps Advisors Inc. Takes $5.59 Million Position in Penske Automotive Group, Inc. $PAG
Alps Advisors Inc. initiated a new stake in Penske Automotive Group (PAG) during the third quarter, acquiring shares valued at approximately $5.59 million. This occurred as other institutional investors adjusted their positions in the company and CFO Michelle Hulgrave reduced her direct holdings. Analyst sentiment remains largely positive, with a "Moderate Buy" consensus and an average price target of $183.71 for the automotive and commercial truck dealership company.
Penske Automotive Group, Inc. (NYSE:PAG) Receives Consensus Recommendation of "Moderate Buy" from Analysts
Penske Automotive Group (NYSE: PAG) has received a "Moderate Buy" consensus recommendation from nine analyst firms, comprising seven "buy" and two "hold" ratings, with an average 1-year target price of $183.71. Key financial metrics include an opening share price of $166.47, a market cap of $10.96 billion, and a P/E ratio of 11.71. Insider activity shows CFO Michelle Hulgrave selling 2,100 shares, while institutional investors collectively own 77.08% of the stock.
Penske Automotive Group (PAG) Q4 Earnings Report Preview: What To Look For
Penske Automotive Group (PAG) is set to report its Q4 earnings on Wednesday before market open, with analysts expecting a 1.5% year-on-year revenue decline to $7.60 billion and adjusted earnings of $3.09 per share. The company met revenue expectations last quarter but missed EBITDA estimates. Investors are watching closely given mixed results from peers like AutoNation and OneWater.
Strs Ohio Lowers Stake in Penske Automotive Group, Inc. $PAG
Strs Ohio significantly reduced its stake in Penske Automotive Group by 96.2% in Q3 2025, selling 10,993 shares and retaining only 437 shares. Despite this reduction, several other institutional investors, including Burgundy Asset Management, AQR Capital Management, Goldman Sachs Group, and Norges Bank, either increased or initiated positions in PAG, resulting in institutional investors owning approximately 77.08% of the company's stock. Analysts maintain a "Moderate Buy" consensus rating for Penske Automotive Group with an average price target of $183.71.
Earnings Preview: Penske Automotive (PAG) Q4 Earnings Expected to Decline
Penske Automotive (PAG) is projected to report a year-over-year decline in Q4 earnings and lower revenues for the quarter ended December 2025. The company is expected to post quarterly earnings of $3.19 per share and revenues of $7.65 billion. Analysts have recently become more bearish, indicated by a negative Earnings ESP of -1.06%, making it difficult to predict an earnings beat despite a Zacks Rank of #3.
Penske Automotive (PAG): Strengthening U.S. Scale with Strategic Acquisitions
Penske Automotive Group (PAG) is expanding its U.S. presence with the acquisition of two Lexus dealerships in Florida, projected to add $450 million in annualized revenue. This move enhances PAG's scale in a fast-growing state, leveraging existing infrastructure. Analysts maintain a positive outlook, with Benchmark reiterating a Buy rating on the stock.
A Look At Penske Automotive Group (PAG) Valuation After Recent 1‑Year Return Decline
Penske Automotive Group (PAG) has seen a 2.8% decline in its 1-year total return, though its three- and five-year returns show significant gains. The stock is currently trading at $158.79, which is considered undervalued compared to the fair value estimate of $180.33 by analysts. This valuation is supported by record growth in service and parts revenue, driven by an aging vehicle fleet.
Penske Automotive (PAG): Strengthening U.S. Scale with Strategic Acquisitions
Penske Automotive Group Inc. (NYSE: PAG) is expanding its presence in Florida by acquiring two Lexus dealerships in the Orlando metropolitan area, which is expected to add $450 million in annualized revenue. This strategic move aims to strengthen the company's scale in a fast-growing state. Despite analyst Michael Albanese's modest reductions in forecasts, Benchmark reiterated a Buy rating and a $190 price target for Penske Automotive.
Is Penske Automotive Group (PAG) Pricing Look Appealing After Recent Auto Retail Sector Reassessment
Penske Automotive Group (PAG) is being re-evaluated in the auto retail sector, and a recent analysis suggests its shares are undervalued. A Discounted Cash Flow (DCF) model indicates the stock is trading at roughly 10.7% below an estimated intrinsic value of $176.31 per share. Furthermore, its current P/E ratio of 10.99x is below both the industry average and a calculated fair ratio, reinforcing the undervaluation assessment.
6,652 Shares in Penske Automotive Group, Inc. $PAG Purchased by Convergence Investment Partners LLC
Convergence Investment Partners LLC recently acquired a new stake of 6,652 shares in Penske Automotive Group (NYSE: PAG), valued at approximately $1.157 million, during the third quarter. Despite this purchase, Penske CFO Michelle Hulgrave sold 2,100 shares in November, reducing her holdings. Analysts currently maintain a "Moderate Buy" rating for PAG with a consensus price target of $183.71.
Vehicle Retailer Stocks Q3 Results: Benchmarking Penske Automotive Group (NYSE:PAG)
Penske Automotive Group (PAG) reported Q3 revenues of $7.70 billion, up 1.4% year-on-year, matching analyst expectations but showing a mixed quarter with strong same-store sales and an EBITDA miss. The article benchmarks PAG against other vehicle retailers, highlighting Camping World's strong Q3 performance and America's Car-Mart's slower quarter. Despite mixed results, the vehicle retailer sector saw strong Q3 performance overall, with revenues beating consensus estimates by 3.1%.
Dealership buy-sell database updates: Penske sells, 2 other top 150 groups buy in latest deals
Penske Automotive has divested a dealership, while two other groups from the top 150 have acquired new dealerships as part of recent buy-sell transactions. The article highlights the sale of Pitre Kia of Las Cruces in New Mexico in January to new owners. These updates reflect ongoing consolidation and changes in ownership within the automotive dealership market.
Penske Automotive Group (PAG): Buy, Sell, or Hold Post Q3 Earnings?
Penske Automotive Group's shares have underperformed the S&P 500, leading investors to question its future. The article suggests caution, citing falling same-store sales, low gross margins indicating weak structural profitability, and a declining EPS despite revenue growth. While the stock's valuation is reasonable, the underlying fundamentals present too much downside risk, leading the author to recommend better investment opportunities elsewhere.
Penske Automotive Group Acquires Two Lexus Dealerships in Central Florida | THE SHOP
Penske Automotive Group Inc. has announced its agreement to acquire two Lexus dealerships, Lexus of Orlando and Lexus of Winter Park, in Central Florida. This acquisition is expected to add $450 million in annualized revenue to the company. The transaction is projected to close during the first quarter of 2026, expanding Penske's presence in a fast-growing region.
3 Reasons PAG is Risky and 1 Stock to Buy Instead
Penske Automotive Group (PAG) experienced a 5.8% loss in shares over the past six months, underperforming the S&P 500. This analysis highlights three reasons for caution: same-store sales falling behind peers, low gross margins indicating weak structural profitability, and declining EPS. The article concludes that despite a reasonable valuation, PAG's shaky fundamentals present too much downside risk, recommending other high-quality stocks instead.
PENSKE AUTOMOTIVE GROUP TO INCREASE PRESENCE IN FLORIDA
Penske Automotive Group, Inc. (PAG) has announced an agreement to acquire two Lexus dealerships, Lexus of Orlando and Lexus of Winter Park, in Central Florida. This acquisition is strategically important, expected to add $450 million in annualized revenue and expand the company's presence in a fast-growing state. The transaction is projected to close in the first quarter of 2026, with funding from cash flow and existing credit.
Penske Automotive to buy two Lexus stores in Florida to grow luxury store count
Penske Automotive Group has announced an agreement to acquire two Lexus dealerships in Central Florida: Lexus of Orlando and Lexus of Winter Park. This strategic move aims to expand Penske Automotive's luxury store portfolio. The financial details of the acquisition were not immediately disclosed.
Penske Automotive in Bloomfield Township Acquires Two Florida Lexus Dealerships
Penske Automotive Group Inc. in Bloomfield Township has announced an agreement to acquire two Florida Lexus dealerships, Lexus of Orlando and Lexus of Winter Park, in metro Orlando. The acquisitions are expected to add $450 million in annualized revenue and contribute to the company's expansion in Florida. The transaction is projected to close in the first quarter of 2026, with funding from cash flow and existing credit.
Penske Automotive Group, Inc. signed an agreement to acquire Lexus Of Orlando and Lexus of Winter Park.
Penske Automotive Group, Inc. has announced an agreement to acquire two Lexus dealerships, Lexus Of Orlando and Lexus of Winter Park, in central Florida. The acquisition is expected to close during the first quarter of 2026, with funding from operations and existing credit. This move will further expand Penske Automotive Group's presence in Florida.
Penske targets fast-growing Florida with $450M Lexus deal
Penske Automotive Group (NYSE: PAG) announced an agreement to acquire two Lexus dealerships in the Orlando metropolitan area, Lexus of Orlando and Lexus of Winter Park, for an estimated $450 million in annualized revenue. This strategic expansion aims to increase PAG's presence in the rapid-growth Central Florida market, leveraging existing infrastructure. The acquisition is expected to close in Q1 2026 and will be funded through cash flow and its U.S. credit agreement.
The Lexus Standard: Inside Penske Automotive Group’s Pivot to Premium Dominance
Penske Automotive Group (PAG) is strategically shifting its focus toward high-margin luxury assets, particularly the Lexus brand, to navigate a volatile global economy and the cyclical nature of commercial freight. This pivot includes recent acquisitions of prominent Lexus dealerships, positioning PAG as a leader in hybrid and high-reliability automotive segments. The company's diversified business model, strong financial performance, and focus on luxury brands provide a robust framework for continued growth despite industry challenges.
Assessing Penske Automotive Group (PAG) Valuation After Recent Share Price Weakness
Penske Automotive Group (PAG) has experienced recent share price weakness but still shows positive long-term returns. Despite the pullback, the stock is considered 11.9% undervalued, with a fair value estimate of $180.89, driven by strong recurring service revenue. Investors are encouraged to build their own narratives and explore other investment opportunities if Penske sparks interest.
Tilly's, Penske Automotive Group, CarMax, and Grocery Outlet Shares Plummet, What You Need To Know
Shares of Tilly's, Penske Automotive Group, CarMax, and Grocery Outlet fell following a volatile week in the stock market, which saw a dip in the Dow Jones Industrial Average. This decline occurred despite President Donald Trump backing off tariff threats, which had initially caused uncertainty. The article highlights that such price drops can present buying opportunities for high-quality stocks and specifically details CarMax's recent earnings miss and stock performance.
How Investors May Respond To Penske Automotive Group (PAG) Analyst Upgrade Amid Shifting Earnings Expectations
Penske Automotive Group (PAG) recently received an upgrade to a Zacks Rank #2 (Buy) due to favorable earnings estimate revisions, despite mixed operating trends. While the upgrade highlights evolving analyst sentiment, the stock's modest recent movement suggests that major catalysts are still tied to upcoming earnings, cash generation, debt management, and future profitability discussions. Investors should consider the potential undervaluation of shares alongside ongoing margin pressures.
Penske Automotive Group (PAG): Buy, Sell, or Hold Post Q3 Earnings?
Penske Automotive Group (PAG) experienced a 5.8% loss in shares over the past six months, underperforming the S&P 500. Analysts are not recommending the stock due to falling same-store sales, low gross margins, and declining EPS. Despite a lower entry price, the company does not pass the analysts' bar, suggesting more exciting opportunities exist elsewhere.
Campbell & CO Investment Adviser LLC Acquires 20,547 Shares of Penske Automotive Group, Inc. $PAG
Campbell & CO Investment Adviser LLC significantly increased its stake in Penske Automotive Group, Inc. (NYSE:PAG) by 296.3% in the third quarter, acquiring an additional 20,547 shares. This brings their total holdings to 27,481 shares, valued at approximately $4.78 million. Penske Automotive Group, with a market capitalization of $10.82 billion, shows strong institutional ownership at 77.08%, and analysts maintain a consensus "Moderate Buy" rating for the stock.
Penske Automotive Group, Inc. (PAG): A Bull Case Theory
This article summarizes a bullish thesis on Penske Automotive Group, Inc. (PAG) from TJ Terwilliger, highlighting the company's strong position as one of the world's largest automotive retailers. The analysis emphasizes Penske's durable competitive advantages, including state laws limiting competition for dealerships, and its significant recurring revenue streams from high-margin service and parts departments. These factors are presented as key drivers for long-term value creation and stable financial performance, making PAG a compelling investment opportunity despite its stock price remaining flat since previous coverage.
Penske Automotive Group, Inc.'s (NYSE:PAG) Low P/E No Reason For Excitement
Penske Automotive Group (NYSE:PAG) has a low P/E ratio of 11.5x, which might appear attractive compared to the broader U.S. market. However, the article suggests this low P/E is justified by the company's uninspiring earnings growth, which has lagged behind most competitors and is forecast to continue doing so. The limited future growth expectations explain why investors are willing to pay a reduced amount for the stock.
How Penske Automotive Group Inc. (PAG) Affects Rotational Strategy Timing
Penske Automotive Group Inc. (PAG) is currently exhibiting strong near-term sentiment while mid and long-term outlooks remain neutral, according to Stock Traders Daily's AI analysis. The analysis highlights a mid-channel oscillation pattern and presents specific trading strategies for different risk profiles, including long, breakout, and short setups with defined entry points, targets, and stop losses. Investors can access real-time signals and customized risk management through the platform.
