Insider Unloading: JOHN BARR Sells $237K Worth Of Penske Automotive Group Shares

Revealing a significant insider sell on March 14, JOHN BARR, Board Member at Penske Automotive Group PAG, as per the latest SEC filing.

What Happened: A Form 4 filing from the U.S. Securities and Exchange Commission on Friday showed that BARR sold 1,529 shares of Penske Automotive Group. The total transaction amounted to $237,683.

Penske Automotive Group's shares are actively trading at $150.25, experiencing a up of 0.81% during Friday's morning session.

Delving into Penske Automotive Group's Background

Penske Automotive Group operates in 19 US states and overseas. It has over 150 US and Puerto Rico light-vehicle stores as well as 210 franchised dealerships overseas, primarily in the United Kingdom but also in Australia, Germany, Italy, and Japan. The company is the third-largest US publicly traded dealership in terms of light-vehicle revenue and sells more than 40 brands, with over 90% of retail automotive revenue coming from luxury and import names. Other segments are service and finance and insurance. The firm's Premier Truck Group owns 45 truck dealerships selling mostly Freightliner and Western Star brands, and Penske owns 16 used-vehicle stores, mostly in the US and UK under the CarShop (US) and Sytner Select (UK) brands. Penske is based in Bloomfield Hills, Michigan.

Penske Automotive Group: Financial Performance Dissected

Revenue Growth: Over the 3 months period, Penske Automotive Group showcased positive performance, achieving a revenue growth rate of 6.16% as of 31 December, 2024. This reflects a substantial increase in the company's top-line earnings. As compared to competitors, the company encountered difficulties, with a growth rate lower than the average among peers in the Consumer Discretionary sector.

Evaluating Earnings Performance:

• Gross Margin: The company shows a low gross margin of 16.33%, indicating concerns regarding cost management and overall profitability relative to its industry counterparts.

• Earnings per Share (EPS): The company excels with an EPS that surpasses the industry average. With a current EPS of 3.54, Penske Automotive Group showcases strong earnings per share.

Debt Management: Penske Automotive Group's debt-to-equity ratio is below the industry average at 1.59, reflecting a lower dependency on debt financing and a more conservative financial approach.

Market Valuation:

• Price to Earnings (P/E) Ratio: The Price to Earnings ratio of 10.85 is lower than the industry average, indicating potential undervaluation for the stock.

• Price to Sales (P/S) Ratio: With a P/S ratio of 0.33 below industry standards, the stock shows potential undervaluation, making it an appealing investment option for those focusing on sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): Penske Automotive Group's EV/EBITDA ratio at 10.83 suggests potential undervaluation, falling below industry averages.

Market Capitalization: Surpassing industry standards, the company's market capitalization asserts its dominance in terms of size, suggesting a robust market position.

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The Importance of Insider Transactions

Insider transactions are not the sole determinant of investment choices, but they are a factor worth considering.

In the realm of legality, an "insider" is defined as any officer, director, or beneficial owner holding more than ten percent of a company's equity securities under Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and major hedge funds. These insiders are required to disclose their transactions through a Form 4 filing, to be submitted within two business days of the transaction.

Notably, when a company insider makes a new purchase, it is considered an indicator of their positive expectations for the stock.

Conversely, insider sells may not necessarily signal a bearish stance on the stock and can be motivated by various factors.

Unlocking the Meaning of Transaction Codes

Taking a closer look at transactions, investors often prioritize those unfolding in the open market, meticulously cataloged in Table I of the Form 4 filing. A P in Box 3 denotes a purchase, while S signifies a sale. Transaction code C denotes the conversion of an option, and transaction code A signifies a grant, award, or other acquisition of securities from the company.

Check Out The Full List Of Penske Automotive Group's Insider Trades.

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This article was generated by Benzinga's automated content engine and reviewed by an editor.