LA JOLLA, CA—Armstrong Mac, CEO and Chairman of Palomar Holdings, Inc. (NASDAQ:PLMR), has recently sold a portion of his holdings in the company. According to a filing with the Securities and Exchange Commission, Armstrong sold 4,170 shares of common stock at a price of $105.86 per share, totaling approximately $441,436. The transaction comes as Palomar Holdings, with a market capitalization of $2.78 billion, has demonstrated strong performance with a 79% return over the past year.
The transaction took place on January 1, 2025, and was part of a mandatory sell-to-cover provision related to a previously granted performance stock unit (PSU) award. This provision required the sale of shares to cover the minimum statutory tax withholding obligations that arose upon the vesting of the PSU. According to InvestingPro data, the company maintains a GREAT financial health score and has achieved impressive revenue growth of 40% in the last twelve months.
Following this transaction, Armstrong holds 56,936 shares directly, with additional shares held indirectly through the Armstrong Family Trust. The transaction is part of routine financial management and does not necessarily reflect any change in Armstrong's confidence in Palomar Holdings, a company specializing in fire, marine, and casualty insurance. InvestingPro analysis reveals 8 additional key insights about PLMR's valuation and growth prospects, available exclusively to subscribers through the comprehensive Pro Research Report.
In other recent news, Palomar Holdings has entered a new employment agreement with CEO and Chair of the Board, Mac Armstrong, extending his tenure through 2029. This agreement includes a base salary of $1,250,000 and potential bonuses tied to performance objectives. In other developments, investment firms Piper Sandler and Keefe, Bruyette & Woods have increased their price targets for Palomar based on earnings estimates, reflecting optimism about the company's growth prospects.
Additionally, Palomar has appointed Benson Latham as Executive Vice President, Head of Crop, as part of its expansion efforts in the specialty insurance sector. The company reported significant growth in its third-quarter performance in 2024, with adjusted net income and total premium growth increasing by 39% and 32% respectively. This growth was driven by gains in the Earthquake, Casualty, and Crop insurance segments.
Palomar also raised $160 million in equity, planning to capitalize on market dislocations and expand its crop business. The company anticipates a full-year adjusted net income guidance of $124 million to $128 million, a 35% increase from 2023. It is on track to meet its Palomar 2X goal, aiming to double its adjusted underwriting income in three years. These developments underline Palomar's strategic focus on growth and expansion.
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