Jonathan Knutzen, Chief Risk Officer at Palomar Holdings, Inc. (NASDAQ:PLMR), recently executed a series of stock transactions, according to a filing with the Securities and Exchange Commission. On November 18, Knutzen sold 758 shares of common stock, netting approximately $81,318, with each share priced at $107.28.
The transaction was part of a mandatory sell-to-cover provision in the restricted stock unit (RSU) award agreement, required to cover tax obligations upon the RSU vesting event. Following these transactions, Knutzen holds 16,885 shares directly.
In addition to the sale, Knutzen acquired 2,447 shares of common stock at no cost, as part of an RSU vesting. This acquisition was executed on the same day, increasing his total direct ownership to 17,643 shares. The RSUs originally granted in 2021 vest in scheduled increments, subject to continued service with the company.
In other recent news, Palomar Holdings Inc (NASDAQ:PLMR). announced significant developments. The company recently appointed Benson Latham as Executive Vice President, Head of Crop, a move seen as a strategic effort to expand its position in the specialty insurance sector. Latham, a seasoned executive with an impressive track record, will lead Palomar's Crop insurance operations.
In financial news, Palomar reported a robust third-quarter performance in 2024, with significant growth across key financial metrics. The company's adjusted net income and total premium growth increased by 39% and 32% respectively. This growth was driven by substantial gains in the Earthquake, Casualty, and Crop insurance segments. The company raised $160 million in equity, intending to capitalize on market dislocations and expand its crop business.
In terms of future expectations, 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, management plans to take on more risk in the Crop sector, indicating a strategic focus on this particular segment.
InvestingPro Insights
Palomar Holdings, Inc. (NASDAQ:PLMR) has been experiencing significant growth and market performance, which provides context to the recent insider transactions by Chief Risk Officer Jonathan Knutzen. According to InvestingPro data, PLMR's revenue growth has been impressive, with a 40.19% increase over the last twelve months as of Q3 2024, and an even more striking 63.31% growth in the most recent quarter. This robust growth trajectory aligns with the company's strong market position.
The stock's performance has been equally noteworthy, with a year-to-date price total return of 93.08% and a one-year return of 83.09%. These figures underscore the substantial value creation for shareholders, including executives like Knutzen who hold equity in the company.
InvestingPro Tips highlight that PLMR is trading near its 52-week high, with the current price at 99.04% of its peak. This information, coupled with the fact that the stock has seen a large price uptick over the last six months, suggests that the timing of Knutzen's transactions may be influenced by the stock's strong performance.
It's worth noting that while PLMR is trading at a high Price / Book multiple, it also has a relatively low P/E ratio of 24.99 when considering its near-term earnings growth potential. This could indicate that despite the recent price appreciation, there might still be room for further growth.
For investors seeking a more comprehensive analysis, InvestingPro offers 11 additional tips for PLMR, providing a deeper understanding of the company's financial health and market position.
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