Penske Automotive Group Shares Soar 1.18% on $250M Buyback Plan

Penske Automotive Group (PAG) shares rose 1.18% today, marking the third consecutive day of gains, with a total increase of 3.68% over the past three days. The share price reached its highest level since February 2025, with an intraday gain of 1.29%.

The strategy of buying PAG shares after they reach a recent high and holding for one week yielded strong results over the past five years. The strategy achieved an overall return of 193.77%, significantly outperforming the benchmark return of 96.61%. The excess return generated by the strategy was 97.16%, indicating that it delivered substantial gains relative to the benchmark. Moreover, the strategy's CAGR was 24.18%, which is a robust indicator of its compounding effectiveness. While the strategy had a maximum drawdown of -31.48%, it maintained a relatively high Sharpe ratio of 0.80, suggesting that the risk-adjusted returns were impressive. The volatility of the strategy was 30.14%, which implies that the strategy's returns were not overly reliant on any single factor and had a broad base of contributors.

One of the most significant factors influencing Penske Automotive Group's stock price is the announcement of a stock repurchase plan. On May 14th, the company's board authorized a plan to repurchase $250.00 million worth of shares. This move is often seen as a vote of confidence in the company's financial health and can positively impact the stock price by reducing the number of shares outstanding, which can increase earnings per share.