Armstrong Mac, CEO and Chairman of Palomar Holdings, Inc. (NASDAQ:PLMR), recently executed a significant stock transaction, according to a recent SEC filing. On January 15, Mac sold 3,154 shares of Palomar Holdings' common stock at a price of $109.27 per share, amounting to a total value of $344,637. The transaction comes as Palomar's stock trades near its 52-week high of $112.90, having delivered an impressive 76.59% return over the past year. According to InvestingPro analysis, the company appears fairly valued at its current market capitalization of $2.9 billion.
This transaction was part of a mandatory sell-to-cover provision related to restricted stock units (RSUs) that vested, requiring the sale to cover tax obligations. Following this transaction, Mac directly owns 60,032 shares of the company's common stock. Additionally, through the Armstrong Family Trust, he holds an indirect ownership of 419,388 shares. With a P/E ratio of 25.3, Palomar shows strong fundamentals. InvestingPro subscribers can access 10 additional key insights about PLMR's valuation and growth prospects.
The sale was reported alongside the acquisition of 6,250 shares from vested RSUs, which were executed at no cost. These transactions reflect Mac's ongoing adjustments in his holdings of Palomar Holdings, aligning with the company's equity compensation plans.
In other recent news, Palomar Holdings has been the subject of several positive developments. The company has secured a new executive employment agreement with its CEO, Mac Armstrong, extending his tenure through January 2029. This agreement provides stability at the executive level, with the compensation and severance terms set for the coming years.
The company has also appointed Benson Latham as Executive Vice President, Head of Crop. Latham brings three decades of experience in the Crop insurance industry, which will be instrumental in expanding Palomar's position in the specialty insurance sector.
Investment firms Piper Sandler and Keefe, Bruyette & Woods have both raised their price targets for Palomar, reflecting confidence in the company's growth prospects. Piper Sandler has increased its target to $133, while Keefe, Bruyette & Woods has raised its target to $136.
Palomar has reported robust growth in its third-quarter performance in 2024, with significant increases in adjusted net income and total premium growth. The company has also successfully raised $160 million in equity, with the intention to capitalize on market dislocations and expand its crop business.
Finally, Palomar anticipates a full-year adjusted net income guidance of $124 million to $128 million, a 35% increase from 2023. The company is also on track to meet its Palomar 2X goal, which aims to double its adjusted underwriting income in three years. These developments underline the recent analyst optimism and reflect Palomar's strategic focus on growth and expansion.
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