Palomar Holdings, Inc. (NASDAQ:PLMR) Chief Financial Officer, Uchida T. Christopher, recently executed a series of transactions involving the company's stock. On November 18, Uchida sold 3,137 shares at a price of $107.28 per share, amounting to $336,537. Additionally, on November 18 and November 20, he sold a total of 2,389 shares at prices ranging from $107.18 to $109.00, totaling $258,526. These transactions were conducted under a 10b5-1 trading plan. Following these sales, Uchida's direct ownership stands at 17,024 shares.
"In other recent news, Palomar Holdings Inc (NASDAQ:PLMR). has seen significant growth in its third-quarter performance in 2024, with a 39% increase in adjusted net income and a 32% boost in total premium growth. This growth was largely driven by substantial gains in the Earthquake, Casualty, and Crop insurance segments. In addition to this, Palomar successfully raised $160 million in equity, intending to capitalize on market dislocations and expand its crop business.
In recent developments, Palomar Holdings has appointed Benson Latham as Executive Vice President, Head of Crop. Latham, with his extensive experience and past achievements in Crop insurance, is expected to lead Palomar's Crop insurance operations.
The company has also reported a 19% rise in gross written premium in the Earthquake segment, while Casualty premiums surged by 91%. However, the Fronting business saw an 11% decline in premiums due to the separation from Omaha National. Despite this, the Crop insurance segment generated $60 million in premiums, a significant increase from the previous year's $12.1 million.
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. Starting January 1, 2025, the management plans to take on more risk in the Crop sector, indicating a strategic focus on this particular segment."
InvestingPro Insights
The recent stock sales by Palomar Holdings' CFO Uchida T. Christopher come at a time when the company's stock is trading near its 52-week high, with a price that is 99.04% of its peak. This aligns with an InvestingPro Tip indicating that Palomar is currently trading near its 52-week high, suggesting strong market confidence in the company's performance.
Palomar's financial metrics paint a picture of robust growth and profitability. The company's revenue growth stands at an impressive 40.19% over the last twelve months, with an even more striking 63.31% growth in the most recent quarter. This growth trajectory is complemented by a healthy EBITDA margin of 28.12%, indicating efficient operations.
InvestingPro Tips also reveal that Palomar has delivered a high return over the last year, with the stock price showing a total return of 83.09% over the past 12 months. This performance is part of a larger trend, as the company has demonstrated strong returns over both the last five years and the last decade.
Despite the recent insider sales, it's worth noting that analysts predict Palomar will remain profitable this year, and the company has indeed been profitable over the last twelve months. The stock's PEG ratio of 0.53 suggests that it may be undervalued relative to its growth prospects, which could be of interest to value-oriented investors.
For those seeking a more comprehensive analysis, InvestingPro offers 11 additional tips for Palomar Holdings, providing deeper insights into the company's financial health and market position.
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