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The Independent Director of Penske Automotive Group, Inc. (NYSE:PAG), Kimberly McWaters, Just Sold 36% Of Their Holding

Simply Wall St

We'd be surprised if Penske Automotive Group, Inc. (NYSE:PAG) shareholders haven't noticed that the Independent Director, Kimberly McWaters, recently sold US$246k worth of stock at US$49.25 per share. The eyebrow raising move amounted to a reduction of 36% in their holding.

See our latest analysis for Penske Automotive Group

Penske Automotive Group Insider Transactions Over The Last Year

The President & Director, Robert Kurnick, made the biggest insider sale in the last 12 months. That single transaction was for US$395k worth of shares at a price of US$46.05 each. So it's clear an insider wanted to take some cash off the table, even below the current price of US$50.69. When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent valuation. However, while insider selling is sometimes discouraging, it's only a weak signal. We note that the biggest single sale was only 8.7% of Robert Kurnick's holding.

In the last twelve months insiders netted US$1.1m for 23735 shares sold. In the last year Penske Automotive Group insiders didn't buy any company stock. You can see the insider transactions (by individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

NYSE:PAG Recent Insider Trading, November 4th 2019

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Does Penske Automotive Group Boast High Insider Ownership?

For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. Insiders own 1.9% of Penske Automotive Group shares, worth about US$76m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

So What Does This Data Suggest About Penske Automotive Group Insiders?

Insiders sold Penske Automotive Group shares recently, but they didn't buy any. Looking to the last twelve months, our data doesn't show any insider buying. Insiders own shares, but we're still pretty cautious, given the history of sales. We'd think twice before buying! If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its future.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity and low debt.

For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions, but not derivative transactions.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.