Penske Auto Group moves up, but convertibles enjoy leisurely Columbus Day

By Evan Weinberger

New York, Oct. 8 - Penske Auto Group, Inc. traded higher Monday, but activity was sparse as the U.S. bond market had Columbus Day off.

One analyst reported that his shop was busy, with the caveat that he meant busy for Columbus Day. "It wasn't a huge volume day but more than I expected when I came in today," he said.

Traders on other desks reported in various ways that nothing much happened on their ends.

Volume was light in the equity markets as well, as investors who did play stocks were cautiously awaiting earnings season. Earnings season kicks off Tuesday with Alcoa Inc. announcing its third-quarter results.

The Dow Jones Industrial Average slipped 22.28 points, or 0.16%, to 14,043.73. The Standard & Poor's 500 gave back 5.01 points, or 0.32%, for a 1,552.58 close.

Only the Nasdaq posted a gain on the day Monday, adding 7.05 points, or 0.25%, to close at 2,787.37.

Penske Auto continues rise

Bloomfield Hills, Mich.-based automotive retailer Penske Auto Group saw its convertibles continue to drive forward as investors think the company's stock may have finally bottomed out, according to one analyst.

Penske's 3.375% senior subordinated notes due April 1, 2026 closed Monday at 109 versus a stock price of $21.07. They were last seen Thursday at 108 versus a stock price of $20.84. Volume, as with everything else Monday, was light.

That assessment of the bottom for the stock may have been a bit premature, as Penske stock (NYSE: PAG) slipped 29 cents, or 1.36%, on Monday. The stock closed at $21.36 on Friday.

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