Roger Penske (Insider Trades), chairman and CEO of Penske Automotive Group Inc. (PAG), acquired 478,000 shares of the company on Aug. 29. The average price per share was $44.21 for a total transaction of $21,132,380. Penske Automotive, an international transportation service company, has a market cap of $3.86 billion.
There was one PAG insider purchase totaling 3,850 shares from 2013 to 2015, however, there were 12 insider purchases totaling 3,820,330 shares in 2016 to date. Half of the total insider buy volume in 2016 to date can be attributed to Penske’s 6 insider transactions in August 2016, totaling 1,910,165 shares. For more information about insider transactions with Penske Automotive Group Inc., click here.
Penske reported revenue of $5.25 billion in the quarter ending June 30. Revenue is up from $4.92 billion reported in the previous year’s second quarter. Net income decreased by 0.5%, from $94 million to $93.5 million when comparing the same periods of time. This equates to a decrease in income per share from $1.04 to $1.10. Penske commented that he is “very pleased with the performance” of the company, and the “Brexit vote did not impact [the company’s] performance.” The company voted to increase the dividend to 28 cents per share in the second quarter of 2016, payable Sept. 1 to shareholders of record on Aug. 10. Thirteen Penske dealerships were named as “Among the Best 100 in the United States: Best 100 Dealerships to Work For 2016” by Automotive News. Penske stated that this will be the fifth consecutive year that Penske dealerships have been recognized by Automotive News as the “Best to Work For” in the United States.
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 rank, click here.
During the second quarter of 2016, Jim Simons (Trades, Portfolio) and Chuck Royce (Trades, Portfolio) reduced their stake in PAG. Simons reduced his stake in the company by 27.20%, selling 35,800 shares at an average per share price of $36.54. Simons reduced his stake further by 46.35%, selling 113,700 shares of the company at an average per share price of $35.60 during the previous quarter. The total estimated gain of the holding since the fourth quarter of 2015 is -16%. Royce sold out all 10,000 shares held in the second quarter of 2016, after acquiring the shares in the previous quarter. The total estimated gain of the holding since the first quarter of 2016 is 3%. For more information about guru trades with PAG, click here.
Disclosure: The author has no position in any of the stocks mentioned in this article.
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