Armstrong Mac, CEO and Chairman of Palomar Holdings, Inc. (NASDAQ:PLMR), recently sold a significant number of shares in the company. According to a filing with the Securities and Exchange Commission, Mac sold a total of 7,000 shares on October 21, 2024. The shares were sold at prices ranging from $95.51 to $96.95, resulting in a total transaction value of approximately $673,977.
The shares were sold in two separate transactions, with 5,985 shares sold at a weighted average price of $96.2061 and 1,015 shares sold at a weighted average price of $96.7328. Following these transactions, Mac holds 503,312 shares directly and indirectly, with a portion held by the Armstrong Family Trust.
This sale is part of Mac's ongoing management of his holdings in the company. Investors often monitor such transactions to gauge insider sentiment and potential future performance of the stock.
In other recent news, Palomar Holdings has made significant strides in its corporate trajectory. The company recently reported its second-quarter earnings and successfully closed an offering of 1.2 million primary shares, totaling $115 million in proceeds. These funds are earmarked for strategic financial moves, including the acquisition of First Indemnity of America, a surety insurer.
Palomar also announced the appointment of David Sapia as the Executive Vice President, Head of E&S Casualty. Sapia is expected to spearhead the development of Palomar's E&S casualty division and identify growth opportunities within the casualty insurance sector.
Analysts have responded positively to these developments. JPMorgan, for instance, raised Palomar Holdings' stock price target to $94.00 and retained its 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 raised its price target for Palomar to $99, maintaining an In Line rating. This adjustment follows 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. These are the recent developments for Palomar Holdings.
InvestingPro Insights
To provide additional context to Armstrong Mac's recent share sale, let's examine some key financial metrics and insights from InvestingPro for Palomar Holdings, Inc. (NASDAQ:PLMR).
Palomar's market capitalization stands at $2.5 billion, reflecting its significant presence in the insurance industry. The company's P/E ratio of 24.37 suggests that investors are willing to pay a premium for its earnings, which aligns with its strong growth prospects. This is further supported by an InvestingPro Tip indicating that Palomar is trading at a low P/E ratio relative to its near-term earnings growth, with a PEG ratio of 0.38 for the last twelve months as of Q2 2024.
The company's revenue growth has been impressive, with a 27.81% increase over the last twelve months and a notable 44.99% growth in Q2 2024 alone. This robust top-line expansion is complemented by a healthy operating income margin of 28.79%, demonstrating Palomar's ability to efficiently convert revenue into profit.
Investors should note that Palomar has delivered exceptional returns, with an InvestingPro Tip highlighting a high return over the last year. In fact, the one-year price total return as of the latest data stands at an impressive 95.4%, significantly outperforming broader market indices.
While these metrics paint a positive picture, it's worth noting that another InvestingPro Tip cautions that short-term obligations exceed liquid assets, which could be a point of consideration for risk-averse investors.
For those interested in a more comprehensive analysis, InvestingPro offers additional tips and insights. Currently, there are 6 more InvestingPro Tips available for Palomar Holdings, which could provide valuable perspective on the company's financial health and future prospects.
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