Palomar CEO Sells Again at $135 as Stock Slides to $123
Palomar Holdings CEO Mac Armstrong sold another $472,000 in stock on September 21 at prices above $134, extending a C-suite selling streak totaling $11.15 million since July — even as the stock has si
Palomar CEO Sells Again at $135 as Stock Slides to $123
NEW YORK, September 28 —
Every open-market sale by Palomar Holdings, Inc.'s (PLMR) C-suite since July was executed above $127; the stock now trades at $122.90. CEO Mac Armstrong's $472,000 sale on September 21 at prices above $134 brings the collective insider tally to $11.15 million, with the company posting four straight EPS beats over the same period.
- $11.15M in C-suite open-market sales since July 2; one disclosed purchase of $135 in the period.
- Trailing revenue $1.09B, +54.7% YoY; four consecutive EPS beats, most recently $2.36 vs. $2.21 estimate.
- Analyst consensus target $163.17, 33% above current $122.90; forward P/E 10.8x on trailing EPS of $7.44.
A 10x Multiple on a Business Growing at 55%
Palomar is a specialty property and casualty insurer focused on hard-to-place risk: earthquake, Hawaii hurricane, inland marine, residential flood, and crop insurance distributed through retail agents and wholesale brokers. That model has produced 54.7% year-over-year revenue growth, lifting trailing revenue to $1.09 billion. The four-quarter beat streak, from $2.01 versus $1.61 through $2.36 versus $2.21 most recently, shows narrowing but sustained outperformance. The forward P/E of 10.8x on trailing EPS of $7.44 looks compressed for that growth rate; sector context is available via the P/E calculator. Analysts disagree with the discount: consensus at $163.17 implies 33% upside.
Why the September Sale Is Different
Most July and August selling has a mechanical explanation. President Jon Christianson's $1.38 million in sales on July 2 and July 20 at $139.50 per share followed same-day option exercises at strike prices of $49.53 and $87.51, converting long-vested compensation into cash. COO Rodolphe Herve's July 31 and CFO T. Christopher Uchida's August 18 disposals follow the same exercise-and-sell pattern. Armstrong's own $7.58 million sale on July 15 also had a corresponding exercise. His September 21 sales of 3,500 shares, generating $472,445 at $134-135, have no disclosed option exercise in the Form 4 record, making them the period's clearest discretionary disposal.
| Ticker | Mkt cap | Fwd P/E | 52-wk |
|---|---|---|---|
| PLMR | $3.3B | 10.8x | +8.3% |
| GSHD | $1.6B | 16.5x | -38.5% |
| NMIH | $3.1B | 7.4x | +6.6% |
| PFSI | $3.4B | 6.0x | -47.5% |
| VCTR | $6.7B | 12.7x | +66.7% |
| HLNE | $5.7B | 11.6x | -38.0% |
What Q3 Must Resolve
The next checkpoint is Q3 results, where the beat streak either extends or breaks. The CFO's August sale at $127.74 sits about $5 above where shares trade today; Armstrong's September sales sit roughly $12 above current levels. Q3 earnings will show whether those transactions reflect routine compensation harvesting or a dimmer view of near-term momentum. Trailing FCF of $570 million and operating cash flow of $415 million against $300 million in debt give the company room to absorb pressure, but the stock's decline since July has not matched what analysts have priced into their targets. Run the free Palomar Holdings, Inc. deep-dive before that report lands.
Basis Report is independent research for informational purposes. It is not investment advice and not a recommendation to buy or sell any security.
Palomar Holdings CEO Mac Armstrong sold another $472,000 in stock on September 21 at prices above $134, extending a C-suite selling streak totaling $11.15 million since July — even as the stock has since retreated to $122.90, now below every disclosed insider sale price in the 90-day window.