In a recent transaction, T. Christopher Uchida, the Chief Financial Officer of Palomar Holdings, Inc. (NASDAQ:PLMR), sold 1,000 shares of the company's common stock. The transaction was executed on June 20, 2024, with the shares sold at an average price of $80.32, amounting to a total value of over $80,000.
The sale was part of a series of transactions that included both the acquisition and disposal of Palomar Holdings' shares by Uchida. On the same day, he also acquired 1,000 shares of common stock at a price of $15.00 per share, totaling $15,000. This purchase was immediately followed by the sale, suggesting a strategic transaction by the CFO. Following these transactions, Uchida's direct ownership in the company stands at 24,094 shares of common stock, which includes 1,666 shares purchased through the company’s Employee Stock Purchase Plan (ESPP).
In addition to the transactions involving common stock, Uchida also engaged in derivative transactions. He exercised options to buy 1,000 shares of common stock at no cost as part of an employee stock option plan. The options have an expiration date of April 16, 2029, and post-transaction, Uchida directly owns 3,156 derivative securities.
These transactions provide insight into the trading activity of Palomar Holdings' executives and may be of interest to current and potential investors. The company, incorporated in Delaware, operates in the fire, marine, and casualty insurance industry and is headquartered in La Jolla, California.
In other recent news, Palomar Holdings has seen a slew of positive adjustments from various firms following its updated 2024 operating income guidance and successful reinsurance renewal. Keefe, Bruyette & Woods maintained an Outperform rating while raising the stock's price target to $96, on the back of Palomar's revised operating income guidance and strategic changes to its reinsurance program. Similarly, Piper Sandler raised its price target for Palomar to $99, following the successful completion of its reinsurance program at lower-than-expected costs.
Truist Securities also increased its shares target for Palomar to $100, citing the company's robust top-line growth and solid returns. Evercore ISI adjusted its outlook on Palomar's shares, increasing the price target to $89 based on the company's better-than-expected pricing and retention for Southeast wind coverage. Lastly, Piper Sandler increased the price target for Palomar to $90, following the company's first-quarter earnings that surpassed expectations. These are recent developments that highlight the company's strategic approach and operational execution.
InvestingPro Insights
Amidst the recent insider trading activity, Palomar Holdings, Inc. (NASDAQ:PLMR) continues to draw attention from the investment community. An analysis of the company's financial performance and market stance provides a clearer picture for those keeping an eye on this insurer's stock.
According to InvestingPro data, Palomar Holdings boasts a market capitalization of $1.93 billion, reflecting its standing in the fire, marine, and casualty insurance industry. The company's P/E ratio stands at 22.07, as of the last twelve months ending Q1 2024, which InvestingPro Tips suggest is low relative to its near-term earnings growth. This could indicate that the stock is potentially undervalued given its growth prospects.
The company has demonstrated robust revenue growth, with a 19.84% increase over the last twelve months as of Q1 2023, and an even more impressive quarterly revenue growth of 32.88% in Q1 2023. Furthermore, Palomar's gross profit margin is solid at 33.1%, indicating healthy profitability relative to its revenues.
InvestingPro Tips highlight that analysts have revised their earnings upwards for the upcoming period, with a consensus that the company will be profitable this year. This is supported by Palomar's strong cash flows, which can sufficiently cover interest payments, suggesting financial stability and resilience.
For investors seeking additional insights, there are more InvestingPro Tips available, which can be accessed by visiting: https://www.investing.com/pro/PLMR. And for those considering a deeper dive into Palomar Holdings' financials and forecasts, using the coupon code PRONEWS24 will secure an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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