Directors dealings: Pendragon bosses show faith

Pendragon's bosses signalled they had faith in the company's outlook by picking up a significant amount of shares the day after a profit warning sent the stock crashing to a 52-week low.

On 24 October, Non-executive chairman Chris Chambers and chief executive Trevor Finn combined purchased over 2.5m shares, with each one forking over rougly £445,000 and £117.3m, respectively, in the process.

In the previous session, the car dealership had warned that full-year profit would be hit by weaker new car demand and pricing on used cars and announced that chairman Mel Egglenton was stepping down with immediate effect.

Nonetheless, the firm's travails may not have been a complete surprise. Indeed, following the release of its interims in late summer, analysts at Cannacord Genuity had anticipated a "tough" backhalf of the year in the new car segment.

In a research note issued on 1 August they told clients: "Overall, we do not expect any material changes to FY17e consensus today, with the H1 'beat' likely to be banked in expectation of a tougher H2 on new cars. Pendragon is focusing on its broader revenue and profit streams which should provide increased support away from new cars over time. To be more positive on the shares, we need to see the leverage on used car investment coming through."

"Pendragon is looking at acquisitions in the US. We think this is dangerous at the top of the cycle but, reassuringly, the company has not yet found anything at the right price, and any acquisition would keep the company within its debt criteria (1-1.5x net debt/EBITDA, vs 0.9x at H1)."

At the time, the broker stuck to a 'hold' recommendation and 36.0p target price for the shares.

Top Director Buys

Pendragon (PDG)
Director name: Finn,Trevor
Amount purchased: 2,000,000 @ 22.25p
Value: £444,999.99

Pendragon (PDG)
Director name: Chambers,Chris
Amount purchased: 510,000 @ 22.99p
Value: £117,249.00

Goodwin Plc (GDWN)
Director name: Goodwin,Matthew Stanley
Amount purchased: 4,274 @ 1,860.00p
Value: £79,496.40

Cpp Group (CPP)
Director name: Hamlin,Mark
Amount purchased: 500,000 @ 13.00p
Value: £65,000.00

Glaxosmithkline (GSK)
Director name: Hampton,Philip R
Amount purchased: 2,882 @ 1,518.00p
Value: £43,748.76

Glaxosmithkline (GSK)
Director name: Elsenhans,Lynn
Amount purchased: 2,434 @ $20.33
Value: $38,643.92

Goodwin Plc (GDWN)
Director name: Goodwin,Bernard Rafe Ernest
Amount purchased: 1,670 @ 1,850.00p
Value: £30,895.00

Goodwin Plc (GDWN)
Director name: Goodwin,Simon R.
Amount purchased: 1,600 @ 1,880.00p
Value: £30,080.00

Glaxosmithkline (GSK)
Director name: Banga,Manvinder Singh
Amount purchased: 1,894 @ 1,518.00p
Value: £28,750.92

Goodwin Plc (GDWN)
Director name: Goodwin,Bernard Rafe Ernest
Amount purchased: 1,388 @ 1,850.00p
Value: £25,678.00

Goodwin Plc (GDWN)
Director name: Goodwin,John W
Amount purchased: 1,235 @ 1,906.00p
Value: £23,539.10

Goodwin Plc (GDWN)
Director name: Goodwin,John W
Amount purchased: 1,220 @ 1,906.00p
Value: £23,253.20

Norish Units (NSH)
Director name: O'Neill,Ted
Amount purchased: 50,000 @ 46.50p
Value: £23,250.00

Monks Inv Trust (MNKS)
Director name: Richards,Belinda
Amount purchased: 2,674 @ 744.00p
Value: £19,894.56

Goodwin Plc (GDWN)
Director name: Goodwin,Timothy J.W.
Amount purchased: 1,040 @ 1,890.00p
Value: £19,656.00

Goodwin Plc (GDWN)
Director name: Goodwin,Richard S
Amount purchased: 1,030 @ 1,906.00p
Value: £19,631.80

Stilo International (STL)
Director name: Ashman,David
Amount purchased: 400,000 @ 4.75p
Value: £19,000.00

Glaxosmithkline (GSK)
Director name: Lewent,Judy
Amount purchased: 1,049 @ $20.33
Value: $16,653.07

Glaxosmithkline (GSK)
Director name: Goodman,Jesse
Amount purchased: 956 @ $20.33
Value: $15,176.68

Goodwin Plc (GDWN)
Director name: Goodwin,Timothy J.W.
Amount purchased: 745 @ 1,883.00p
Value: £14,028.35

Glaxosmithkline (GSK)
Director name: Glimcher,Laurie
Amount purchased: 699 @ $20.33
Value: $11,096.76

Primorus Investments (PRIM)
Director name: Strang,Donald Ian George Layman
Amount purchased: 4,410,000 @ 0.22p
Value: £9,613.80

Firstgroup (FGP)
Director name: O'Toole,Tim
Amount purchased: 7,803 @ 106.67p
Value: £8,323.64

Glaxosmithkline (GSK)
Director name: Rohner,Urs
Amount purchased: 473 @ 1,518.00p
Value: £7,180.14

Glaxosmithkline (GSK)
Director name: Anderson,Sir Roy
Amount purchased: 473 @ 1,518.00p
Value: £7,180.14

Goodwin Plc (GDWN)
Director name: Goodwin,Timothy J.W.
Amount purchased: 350 @ 1,889.00p
Value: £6,611.50

Glaxosmithkline (GSK)
Director name: Cox,Vivienne
Amount purchased: 350 @ 1,518.00p
Value: £5,313.00

Goodwin Plc (GDWN)
Director name: Goodwin,Bernard Rafe Ernest
Amount purchased: 221 @ 1,849.00p
Value: £4,086.29

Goodwin Plc (GDWN)
Director name: Goodwin,Matthew Stanley
Amount purchased: 110 @ 1,922.00p
Value: £2,114.20

Totally (TLY)
Director name: Jayne Lawrence,Wendy
Amount purchased: 4,000 @ 44.92p
Value: £1,796.80

Igas Energy (IGAS)
Director name: Bowler,Stephen
Amount purchased: 664 @ 67.75p
Value: £449.86

Blue Prism Group (PRSM)
Director name: Johnson,Gary
Amount purchased: 22 @ 1,258.00p
Value: £276.76

Spirent Communications (SPT)
Director name: Hutchinson,Eric G
Amount purchased: 274 @ 91.25p
Value: £250.03

Nexus Infrastructre (NEXS)
Director name: Martin,Alan
Amount purchased: 102 @ 196.30p
Value: £200.23

Miton Group (MGR)
Director name: Williams,Gervais
Amount purchased: 375 @ 40.00p
Value: £150.00

Miton Group (MGR)
Director name: Barron,David
Amount purchased: 375 @ 40.00p
Value: £150.00

Miton Group (MGR)
Director name: Harrison ,Piers Godfrey
Amount purchased: 375 @ 40.00p
Value: £150.00

Miton Group (MGR)
Director name: Dighe,Ian R
Amount purchased: 375 @ 40.00p
Value: £150.00

Top Director Sells

Wh Smith (SMWH)
Director name: Clarke,Stephen
Amount sold: 125,240 @ 2,034.73p
Value: £2,548,302.01

Wh Smith (SMWH)
Director name: Moorhead,Robert
Amount sold: 89,306 @ 2,034.73p
Value: £1,817,140.36

Wh Smith (SMWH)
Director name: Houghton,Ian
Amount sold: 42,107 @ 2,034.73p
Value: £856,765.83

Impax Asset Management Group (IPX)
Director name: Simm,Ian
Amount sold: 450,000 @ 142.00p
Value: £638,999.98

Impax Asset Management Group (IPX)
Director name: Ridge,Charlie
Amount sold: 430,000 @ 142.00p
Value: £610,599.98

Robert Walters (RWA)
Director name: Daubeney,Giles P
Amount sold: 100,000 @ 590.00p
Value: £590,000.01

Wh Smith (SMWH)
Director name: Moorhead,Robert
Amount sold: 25,000 @ 2,034.73p
Value: £508,683.73

Wh Smith (SMWH)
Director name: Houghton,Ian
Amount sold: 22,500 @ 2,034.73p
Value: £457,815.36

Impax Asset Management Group (IPX)
Director name: Ridge,Charlie
Amount sold: 15,940 @ 142.00p
Value: £22,634.80