American Coastal Insurance Corp. (OTC:ACIC) director Kern Michael Davis has recently increased his stake in the company, buying shares valued at a total of $15,914. The transactions, which took place on March 22, 2024, were reported in a regulatory filing with the Securities and Exchange Commission.
Davis purchased shares at prices ranging from $10.11 to $10.138. The shares were acquired in two separate transactions, each involving 786 shares. Following these purchases, Davis's directly held stake in American Coastal Insurance Corp. now includes a total of 3,326 shares for each of his first and second child's Individual Retirement Accounts (IRAs).
Investors often monitor insider buying as it can be a signal of an executive's confidence in the company's future performance. The acquisition of shares by a director like Davis could be interpreted as a positive indicator by the market, potentially impacting the company's stock performance.
American Coastal Insurance Corp., with its business address in Saint Petersburg, Florida, operates in the fire, marine, and casualty insurance industry. The company, incorporated in Delaware, has a history that includes a name change from United Insurance Holdings (NASDAQ:ACIC) Corp. in 2008 and from FMG Acquisition Corp. in 2007.
The reported transactions underscore the ongoing financial activities within the company's leadership, providing investors with insights into the actions of American Coastal Insurance Corp.'s insiders. For those holding or considering an investment in the company, such insider transactions are key pieces of information that can aid in making informed decisions.
InvestingPro Insights
As American Coastal Insurance Corp. (OTC:ACIC) sees insider activity with director Kern Michael Davis's recent share purchase, investors may find the following metrics from InvestingPro useful in evaluating the company's current financial standing. The market capitalization of American Coastal Insurance Corp. stands at a robust $483.25 million, indicating its relative size within the insurance industry. The company's P/E ratio, a key indicator of valuation, is attractively low at 1.42, with an adjusted P/E ratio for the last twelve months as of Q4 2023 at 5.89. This suggests that the company's earnings are strong relative to its share price, potentially indicating an undervalued stock.
Further financial scrutiny reveals that American Coastal Insurance Corp. has demonstrated a solid gross profit margin of 48.98% over the last twelve months, reflecting efficient control over its cost of goods sold. However, the company has experienced a quarterly revenue decline of -22.07% in Q4 2023, which may warrant attention from investors considering the recent insider purchases as a sign of confidence. Despite this, the company has maintained a significant one-year price total return of 303.57%, showcasing a remarkable stock performance over the past year.
For investors seeking more in-depth analysis, InvestingPro offers additional insights and metrics. There are currently 15 more InvestingPro Tips available for American Coastal Insurance Corp., which can provide a comprehensive understanding of the company's financial health and future prospects. Interested investors can take advantage of these insights by using the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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