Roger Penske (Insider Trades), CEO, Chairman and 10% Owner of Penske Automotive Group Inc. (PAG), acquired 710,121 shares of the company on August 2. The average price per share was $39.10, for a total transaction of $27,765,730. Penske is an international transportation services company with a market cap of $3.3 billion.
Penske and Penske Corp. conducted the two insider buys to date. Both buys were of 710,121 shares at an average per share price of $39.10. Two months prior to Penske’s insider buy, Penske sold 71,874 shares at an average per share price of $50.19. Penske sold 501,326 shares in three transactions from 2010 to date. From 2013 to 2015, the number of PAG insider sells remained the same each year, however, the volume decreased each year starting from 244,861 shares in 2013 to 97,362 shares in 2015. The number and volume of PAG insider buys is indirectly related to month end price. 
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The company reported a 6.8% increase in revenue in the second quarter of 2016, compared to the previous year’s second quarter. Revenue for the second quarters of 2015 and 2016 were $4.920 billion and $5.254 billion, respectively. On the other hand, net income decreased from $94.0 million, or $1.04 per share, to $93.5 million, or $1.10 per share, in the same period of time. Penske commented that the company continues to grow “by acquiring five commercial truck dealerships in Canada” and strengthening the company’s capital structure by “issuing new 10-year senior subordinated notes at 5.5%.” PAG revenue increased 14.29% and net income increased 18.64% since 2011. The company announced an increase in cash dividend to 28 cents per share in the second quarter of 2016, payable September 1 to shareholders on record as of August 10. On July 22, Automotive News named 13 Penske dealerships among the “Best 100 Dealerships to Work For 2016”. Penske stated that Automotive News has recognized several Penske dealerships as the “Best to Work For” in the United States for five consecutive years.
According to GuruFocus information, Penske Automotive Group Inc. has a business predictability rank of 1 out of 5 stars. For more information about business predictability ranks, click here.
During the first quarter of 2016, Ron Baron (Trades, Portfolio) and George Soros (Trades, Portfolio) both decreased their stake in PAG by selling all held shares of the company. Baron sold 400,000 shares at an average per share price of $35.61. The total estimated gain of the holding since the first quarter of 2011 was 90%. Soros sold 7,500 shares after acquiring the holding in the previous quarter. The total estimated gain since the fourth quarter of 2015 was -24%. For more information about guru trades with PAG, click here.
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