Palomar Holdings, Inc.'s (NASDAQ:PLMR) CEO and Chairman, Mac Armstrong, has recently sold a significant portion of his holdings in the company. Armstrong, who oversees the fire, marine, and casualty insurance provider, disposed of company stock amounting to more than $578,000.
The transactions, which took place on March 21, 2024, involved the sale of 5,800 shares at a weighted average price of $82.4818, and an additional 1,200 shares sold at an average price of $83.2683. The prices at which the shares were sold ranged from $82.00 to $82.98 for the first batch and from $83.00 to $83.67 for the second, according to a footnote in the filing.
Following these sales, the ownership stake held by Armstrong in Palomar Holdings through direct and indirect means has been updated to reflect a total of 475,388 shares. It is noted that the shares sold were held indirectly by the Armstrong Family Trust.
The reported sales are part of the latest financial disclosures made by company executives, providing public insight into their trading activities. Investors often monitor such sales as they may provide signals about executives' perspectives on the company's current valuation and future prospects.
For those with a vested interest in Palomar Holdings, it is worth noting that the stock transactions by the CEO are just one piece of the puzzle when it comes to evaluating the company's performance and potential. As always, such insider trading should be considered alongside a comprehensive analysis of the company's fundamentals, market conditions, and broader economic factors.
InvestingPro Insights
Amidst the recent insider trading activity at Palomar Holdings, Inc. (NASDAQ:PLMR), where CEO Mac Armstrong sold shares worth over half a million dollars, investors are keen to understand the company's financial health and market performance. To aid in this analysis, InvestingPro Insights provide key metrics and tips that offer a deeper look into Palomar's valuation and performance.
On the valuation front, Palomar Holdings is currently trading at a P/E ratio of 25.74, which is closely aligned with the adjusted P/E ratio for the last twelve months as of Q4 2023, standing at 25.81. This suggests the company is being valued by the market at a consistent earnings multiple over the recent period. Moreover, the PEG ratio, which combines the P/E ratio with the earnings growth rate, is at a compelling 0.47 for the same period, indicating that the stock may be undervalued relative to its earnings growth.
From a performance perspective, Palomar has demonstrated robust revenue growth of 14.93% over the last twelve months as of Q4 2023, with an even more impressive quarterly growth rate of 18.92%. The company's profitability is also evident from its gross profit margin of 32.54% and an operating income margin of 28.57%.
InvestingPro Tips highlight that analysts have recently revised their earnings estimates upwards for Palomar, signaling potential optimism about the company's future performance. Furthermore, Palomar is trading at a high Price / Book multiple of 4.34, which could be indicative of the market's high expectations for the company's net asset value.
Investors looking for additional insights can find more InvestingPro Tips for Palomar Holdings on InvestingPro, including analysis on the company's liquidity, profitability, and historical returns. For those considering an InvestingPro subscription, use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription. With a total of 13 additional tips available, subscribers can gain a comprehensive understanding of Palomar's investment profile.
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