Palomar Holdings CEO sells over $668k in company stock

Palomar Holdings, Inc. (NASDAQ:PLMR ) CEO and Chairman Mac Armstrong recently sold a significant portion of his holdings in the company, according to the latest regulatory filings. Armstrong, who also serves as a director, offloaded a total of 7,000 shares of common stock in a series of transactions.

The sales, which occurred on September 23, 2024, amounted to over $668,000. The shares were sold at varying prices ranging from $94.81 to $95.88, with a weighted average selling price between $95.4719 and $95.8418. This recent activity was disclosed in a Form 4 document filed with the Securities and Exchange Commission.

Investors tracking insider transactions may note that Armstrong's sales were executed indirectly through the Armstrong Family Trust. Following these transactions, the CEO still has a substantial interest in Palomar Holdings, with direct ownership of 47,247 shares, which includes 2,428 shares purchased through the company's 2019 Employee Stock Purchase Plan.

Palomar Holdings, a specialty insurance company, has its shares publicly traded under the ticker PLMR. The company is known for its offerings in fire, marine, and casualty insurance, operating out of La Jolla, California. The sale by the CEO represents a notable change in his investment in the firm, though the reasons behind the sale have not been publicly disclosed.

Investors often keep a close watch on insider selling and buying as it can provide insights into the executive's view of the company's current valuation and future prospects. However, such transactions can be motivated by a variety of personal financial considerations and do not necessarily indicate a change in company fundamentals.

The details of the transactions, including the exact number of shares sold at each price point within the reported range, are available upon request from Palomar Holdings or the SEC.



In other recent news, Palomar Holdings, Inc. has reported significant developments. The company announced the successful closure of an offering of 1.2 million primary shares, generating $115 million in proceeds. These funds are earmarked for strategic financial initiatives, including the acquisition of First Indemnity of America, a surety insurer.

In addition to this, Palomar Holdings has appointed David Sapia as the Executive Vice President, Head of E&S Casualty. With over three decades of experience, Sapia is expected to lead the development of the company's E&S casualty division and identify growth opportunities within the casualty insurance sector.

In terms of analyst updates, JPMorgan raised Palomar Holdings' stock price target to $94.00, maintaining a neutral stance. Other firms such as Keefe, Bruyette & Woods, Piper Sandler, and Truist Securities also increased their price targets for Palomar, citing reasons such as increased operating income guidance and successful completion of its reinsurance program.

Evercore ISI also raised its price target for Palomar to $99, maintaining an In Line rating. This adjustment reflects Palomar's recent financial performance, which showed substantial growth and better-than-expected expense ratio leverage. The firm also revised its forward estimates for Palomar upwards by 7-9%, reflecting higher retained premiums and expense leverage extending into 2025.

Lastly, Palomar announced the appointments of Tim Carter as Chief People Officer and Rodolphe "Rudy" Herve as Chief Operating Officer. These new additions are expected to support Palomar's growth strategies and operational capabilities.
InvestingPro Insights


Palomar Holdings, Inc. (NASDAQ:PLMR) has been under the investor's lens, not just for its executive transactions but also for its financial performance and market valuation. According to InvestingPro data, Palomar has a market capitalization of $2.52 billion, reflecting its standing in the specialty insurance market. The company's P/E ratio stands at 24.61, which is considered low relative to its near-term earnings growth — a point that might interest value investors looking for growth at a reasonable price. This aligns with the InvestingPro Tip that highlights the company's attractive valuation metrics.

Revenue growth has also been robust for Palomar, with a significant 27.81% increase over the last twelve months as of Q2 2024, and an even more impressive quarterly growth rate of 44.99%. These figures indicate a strong expansion in the company's financials, which may reassure investors about its growth trajectory.

InvestingPro Tips further reveal that analysts are optimistic about Palomar's profitability, predicting the company will be profitable this year. This sentiment is supported by the company's substantial operating income margin of 28.79% and a solid gross profit margin of 32.28% over the same period. The company has also demonstrated a strong return over the last three months, with a 21.98% price total return, underscoring its recent market performance.

For investors seeking more in-depth analysis and additional insights, there are 11 InvestingPro Tips available on the platform, which can provide a more comprehensive view of Palomar's financial health and market potential. Access these valuable tips at: https://www.investing.com/pro/PLMR.

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Source: Investing.com