This beaten-down ASX stock is jumping 6% after a $4.4 million insider buy

Insider buying gives this beaten-down ASX stock a welcome lift.

Peter Warren Automotive Holdings Ltd (ASX: PWR) shares are charging higher on Thursday after several company insiders increased their holdings.

At the time of writing, the Peter Warren share price is up 5.75% to an intraday high of 92 cents.

The rebound comes after the automotive dealership group released several director interest notices following Wednesday's market close.

However, shareholders have still endured a painful year. The stock remains down around 50% since the beginning of 2026 and more than 35% over 12 months.

So, what has investors buying today?

A man in a business suit holds his hand up to his mouth as though sharing a secret and gives a sly grin.

Image source: Getty Images

Incoming chairman spends $4.4 million

The largest purchase came from incoming chairman Paul Warren, whose family founded the company.

According to the announcement, Warren bought 107,583 shares for around $97,431 on 11 June. He then purchased another 4.2 million shares for approximately $4.32 million on 15 June.

That takes the total value of the two purchases to roughly $4.41 million.

Following the transactions, Warren's direct and indirect interests total just over 69.3 million securities, including a small number of performance rights.

The buying also comes ahead of a leadership change at the end of June. Long-serving chairman John Ingram is retiring, with Warren set to take over the role.

Ingram has also increased his holding, buying 44,844 shares across two transactions for around $41,794.

Non-Executive Director John Eastham joined the buying as well, spending approximately $140,766 on 153,489 shares.

Warren family lifts its stake

A separate substantial holder notice showed that the Warren family's voting interest has increased from 37.72% to 40.22%.

Its holding rose from around 65 million shares to 69.3 million shares following the purchases.

It's worth noting that insider buying can attract attention because directors are using their own money to increase their exposure. However, it doesn't guarantee that a falling share price has reached the bottom.

The purchases also came as fund manager Regal Partners Ltd (ASX: RPL) reduced its position.

Regal sold around 3.6 million shares, cutting its voting interest from 10.36% to 8.29%.

Why has the stock struggled?

Peter Warren sells new and used vehicles and provides servicing, parts, finance, and insurance products.

Earlier this month, the company warned that trading conditions had weakened as customers changed their spending habits.

Higher interest rates and cost-of-living pressure have pushed more buyers towards smaller and more fuel-efficient vehicles. Customers are also buying fewer higher-margin vehicles and optional accessories.

Growing competition between car brands has added further pressure to new vehicle margins.

Without doubt, the director purchases have helped lift the share price, but investors will still want to see trading conditions improve.

Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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