Insider: heavy buying at ‘one of most exciting’ UK growth stories

A £200,000 spending spree by five directors of Pinewood Technologies Group (LSE:PINE) has picked up shares at prices significantly below the valuation they gave a recent private equity bidder.

• Our Services: SIPP Account | Stocks & Shares ISA | See all Investment Accounts

Last week’s purchases took place at between 295p and 309.5p, which compares with the 500p that the board of FTSE 250-listed Pinewood told Apax it was minded to accept if a firm offer materialised.

However, Apax walked away from the potential £575 million deal on 13 February. It blamed the “prevailing challenging market conditions” after stocks across the software-as-a-service (SaaS) sector fell sharply on the back of AI disruption fears.

Pinewood, which provides AI-enhanced software for car dealerships, provided a robust response to the withdrawal by backing long-term prospects and reiterating 2028 guidance for underlying earnings of between £58 million and £62 million.

Shares recovered to 318p by Friday afternoon, having slumped earlier in the week to their lowest point since the company’s separation from Pendragon in February 2024.

City firm Berenberg reinstated a Buy recommendation and 725p price target following the collapse of the Apax talks, describing Pinewood as “one of the most exciting growth stories in the UK market”.

• Shares for the future: second chance for Decision Engine reject?
• Week Ahead: Rolls-Royce, Diageo, HSBC, IAG, Ocado

The software company, which secured its independence following the sale of Pendragon's UK motor and leasing divisions to North America-based Lithia Motors, has long-standing partnerships with over 50 brands and last year acquired Seez in a $42 million (£31 million) deal.

The move, which was funded via the issue of new shares at 315p, enhanced Pinewood's in-house capabilities through AI chatbots for customer service and sales support.

It has also taken full ownership of Pinewood North America, alongside a five-year contract with Lithia to roll out Pinewood.AI software to all sites in the US and Canada by the end of 2028.

Berenberg said Pinewood’s highly scalable, cloud-based software solution was underpinned by 20 years of automotive industry experience.

The bank added that highly attractive SaaS economics and a cash-rich, debt-free balance sheet left the company primed to reinvest for further growth. “In our view, Pinewood is set to continue taking share from legacy incumbents in a large, growing market.”

• The Analyst: defence – how to play the new tech sector
• Stockwatch: a trust that could continue to multiply

Berenberg said Pinewood has several characteristics that should make it resilient to AI-based disruption, including the benefit of a “mission-critical” solution that is deeply embedded in its customers’ workflows.

The bank said Pinewood traded on an enterprise valuation multiple of 11.4 times underlying earnings, which was in contrast to the 56% compound annual growth implied by the mid-points of the company’s 2025 and 2028 earnings guidance.

Last week’s purchases included share dealings on Thursday by chief executive Bill Berman, who spent £49,650 at a price of 309.5p.

Finance chief Ollie Mann earlier made an investment worth £76,838 at 306.8p, while non-executive director Jemima Bird spent £50,000 at 296p at the start of last week. The other boardroom buyers were Dietmar Exler and Brian Small.

Bagging a profit on Marks stock

Marks & Spencer Group (LSE:MKS) chief executive Stuart Machin has raised £600,000 by selling shares on the back of a strong start to the year for the FTSE 100-listed retailer.

Machin’s dealings took place on Tuesday at a price of 404p, which is not far from the decade-high levels set in October and in the week prior to April’s cyber attack.

The shares were among last week’s 10 best performing in the FTSE 100 index year to date, having jumped by more than 20% from 330p at the end of 2025.

A robust Christmas trading update has helped after M&S reported continued momentum in food and signs that fashion, home and beauty is getting back on track after the cyber disruption.

House broker Shore Capital, which this month joined institutions and wealth managers at a meeting with management, highlighted a strengthening investment thesis.

It added: “There is an awful lot to like here, a brighter future, to us, embracing potentially considerable capital appreciation and income distribution; even a 700p+ long- term share price."

• 10 steps to generate a tax-efficient retirement income
• Sign up to our free newsletter for investment ideas, latest news and award-winning analysis

No reason was given for the stake sale by Machin, who continues to hold considerably more shares than the 250% of salary required for the position of chief executive.

His total remuneration amounted to £7.1 million in 2024/25, up from £5.1 million the previous year and the largest sum paid for the role in the past decade. This was boosted by an annual bonus of £1.6 million and the 90% vesting of long-term incentives worth £4.6 million.

Machin’s base salary increased in July by 2% to £865,700.

Other dealings in the FTSE 100 index last week included a second purchase of shares by new Whitbread chair Christine Hodgson.

She spent £210,000 at 2,705p, which compares with the Premier Inn owner’s five-year low price of 2,335p in mid-December and the 2,880p when she bought a £288,000 stake in October.