Armstrong Mac, CEO and Chairman of Palomar Holdings, Inc. (NASDAQ:PLMR), sold 3,185 shares of the company's common stock on October 15. The shares were sold at an average price of $98.21, totaling approximately $312,798. This transaction was part of a mandatory sell-to-cover provision related to restricted stock units (RSUs) to meet tax withholding obligations.
Following the sale, Mac directly owns 50,312 shares and indirectly holds 440,388 shares through the Armstrong Family Trust. Additionally, Mac acquired 6,250 shares through the exercise of RSUs, which were originally granted in July 2021.
In other recent news, Palomar Holdings reported its second-quarter earnings and successfully closed an offering of 1.2 million primary shares, totaling $115 million. These funds are slated for strategic financial maneuvers, including the acquisition of First Indemnity of America, a surety insurer. The company also announced the appointment of David Sapia as the Executive Vice President, Head of E&S Casualty, further strengthening its leadership team.
JPMorgan adjusted Palomar Holdings' stock price target to $94.00, maintaining a neutral stance. This revision reflects adjusted net income projections and the dilutive impact of new equity issued. 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, while 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.
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. These are the recent developments for Palomar Holdings.
InvestingPro Insights
As Armstrong Mac's recent stock transaction reflects the company's compensation structure and tax obligations, it's worth examining Palomar Holdings' financial performance and market position to provide context for investors.
According to InvestingPro data, Palomar Holdings boasts a market capitalization of $2.57 billion, indicating its significant presence in the insurance industry. The company's revenue growth is particularly noteworthy, with a 27.81% increase over the last twelve months as of Q2 2024, and an even more impressive 44.99% quarterly growth in Q2 2024. This robust top-line expansion suggests that Palomar's business strategies are gaining traction in the market.
InvestingPro Tips highlight that Palomar is trading at a low P/E ratio relative to its near-term earnings growth, with a PEG ratio of 0.39 as of Q2 2024. This metric could indicate that the stock is potentially undervalued considering its growth prospects. Additionally, the company has demonstrated a high return over the last year, with a one-year price total return of 84.08% as of the latest data.
It's important to note that while Palomar shows strong growth and returns, InvestingPro Tips also point out that short-term obligations exceed liquid assets, which investors should consider when evaluating the company's financial health.
For those interested in a more comprehensive analysis, InvestingPro offers 11 additional tips for Palomar Holdings, providing a deeper understanding of the company's financial position and market performance.
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