American Coastal Insurance Corp (NASDAQ:ACIC) has reported a significant transaction by its Chief Operating Officer, Christopher Griffith. According to the latest SEC filing, Griffith sold 35,000 shares of the company's common stock at a price range of $10.49 per share, totaling approximately $367,150.
The transaction, which took place on June 25, 2024, followed an equivalent acquisition of shares on the same day. Griffith exercised options to acquire the 35,000 shares at a price of $1.70 per share, amounting to a total transaction value of $59,500. The options exercise and subsequent sale resulted in a reduction of Griffith's direct holdings in the company, leaving him with 134,656 shares of American Coastal Insurance Corp's common stock.
Investors often monitor insider transactions as they can provide insights into executives' perspectives on the value of the company's stock and its future prospects. The filing did not include any specific reasons for the COO's sale of shares, but such transactions are a routine part of executive compensation and financial planning.
The SEC Form 4 filing also noted that the exercise of the nonqualified stock options is subject to a vesting schedule over three years, with a third of the stock becoming exercisable each period, as detailed in footnote F1 of the document.
American Coastal Insurance Corp, based in Saint Petersburg, Florida, operates in the fire, marine, and casualty insurance industry and is incorporated in Delaware. The company's stock is publicly traded on the NASDAQ exchange under the ticker symbol ACIC.
In other recent news, American Coastal Insurance Corporation reported a strong Q1 performance in 2024, with a 38% increase in net income to $23.6 million from the previous quarter. The company's core return on equity was a robust 69.7%, supported by an underlying combined ratio of 57.8%. In a strategic move, the company plans to reduce its external quota share and anticipates a significant rise in net written and earned premiums over the next 18 months.
American Coastal also announced the sale of Interboro Insurance Company, marking a significant step in divesting from personal lines operations. This is part of a broader strategy to streamline the company's focus and enhance its financial resilience.
These recent developments come with an aim to increase overall protection and improve cost efficiency with its catastrophe reinsurance program. The company is also planning to purchase an additional $265 million limit from the private market. Despite facing increased competition in the commercial lines business, American Coastal targets a 65% underlying combined ratio and expects to maintain strong combined ratios.
InvestingPro Insights
Following the recent transaction by American Coastal Insurance Corp's (NASDAQ:ACIC) COO, Christopher Griffith, the company's financial metrics reveal a mixed performance. The market capitalization of ACIC stands at a modest $517.03 million, reflecting the scale of the business in the competitive insurance landscape. The company's Price/Earnings (P/E) ratio, which measures its current share price relative to its per-share earnings, is 7.24, with an adjusted P/E ratio for the last twelve months as of Q1 2024 at 6.9. This indicates a potentially undervalued stock, especially when considering the industry average.
The Price to Earnings Growth (PEG) ratio is remarkably low at 0.05, suggesting that the company's earnings are expected to grow significantly. This could be a positive signal for investors looking for growth potential in their stock picks. Additionally, the Price/Book ratio of 2.53 might appeal to value investors seeking stocks trading at a reasonable price relative to their book value.
Despite a decline in revenue growth, with a -10.69% change over the last twelve months as of Q1 2024, and a quarterly drop of -18.95%, ACIC has maintained a substantial Gross Profit Margin of 51.56%, indicating the company's ability to retain a significant portion of its sales as gross profit. With an Operating Income Margin of 36.28%, the company demonstrates strong operational efficiency.
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