Palomar Holdings, Inc. (NASDAQ:PLMR) CEO and Chairman Mac Armstrong recently sold a significant amount of company stock, transactions which were reported in a recent filing with the Securities and Exchange Commission. The sales, which took place on April 22, 2024, totaled over $560,000.
According to the filing, Armstrong sold shares in multiple transactions at prices ranging from $78.35 to $80.77. The reported weighted average prices for these sales were $78.8939 for 400 shares, $79.9696 for 5,070 shares, and $80.5465 for 1,530 shares. These sales were executed indirectly through the Armstrong Family Trust.
Following these transactions, the trust still holds a substantial number of shares in Palomar Holdings. The exact number of shares sold at each price within the provided range is available upon request from the company, any security holder, or the SEC staff, as noted in the filing's footnotes.
The filing also included a footnote indicating that the CEO's total ownership includes 2,263 shares purchased under the Palomar Holdings, Inc. 2019 Employee Stock Purchase Plan (ESPP).
Investors often monitor insider sales as they can provide insights into an executive’s perspective on the company’s current valuation and future prospects. However, it's important to note that insider transactions can be motivated by a variety of factors and may not necessarily be indicative of the company's operational performance or future trajectory.
The signature on the filing was provided by Angela Grant, acting as Attorney-in-Fact for Mac Armstrong.
InvestingPro Insights
Amidst the news of CEO Mac Armstrong's stock sales, Palomar Holdings, Inc. (NASDAQ:PLMR) continues to present an interesting profile for investors looking at the company's financial metrics and market performance. The current Market Cap stands at approximately $2.03 billion, reflecting the company's overall market valuation. With a P/E Ratio of 25.45, Palomar is trading at a multiple that suggests investors are expecting earnings growth, especially when considering the relatively low PEG Ratio of 0.47 for the last twelve months as of Q4 2023, which indicates potential undervaluation relative to its earnings growth rate.
The company has demonstrated a strong performance with a 1 Year Price Total Return of 55.83%, which is complemented by a significant 6 Month Price Total Return of 63.42%, illustrating a robust upward trend in the stock's valuation over the recent months. These figures are particularly relevant in the context of the CEO's recent stock sales and may provide insights into the timing and potential motivations behind such transactions.
InvestingPro Tips highlight that while Palomar is trading at a high Price / Book multiple of 4.3, the company has also been profitable over the last twelve months. Moreover, analysts predict the company will be profitable this year, which may contribute to investor confidence in the stock's future prospects. For those interested, there are over ten additional InvestingPro Tips available, including insights on short-term obligations versus liquid assets and the company's ability to cover interest payments with cash flows, which can be found on the dedicated InvestingPro page for Palomar Holdings.
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