Mac Armstrong, the chief executive officer and chairman of Palomar Holdings, Inc. (NASDAQ:PLMR), completed a set of insider transactions at the end of January 2026 that included both sales and stock unit vesting. On January 29 and 31, 2026, Armstrong sold a total of 7,604 shares of Palomar common stock for roughly $927,354, with the trades executed at a weighted average price ranging from $121.7437 to $122.0432.
At the same time as those dispositions, Armstrong also acquired a total of 14,771 shares via restricted stock unit (RSU) exercises tied to company options; those shares were recorded at an exercise price of $0.00. Following these moves, Armstrong's direct ownership of Palomar stock stands at 98,904 shares, and he holds an additional 348,388 shares indirectly through the Armstrong Family Trust.
Palomar, a specialty insurer with a market capitalization reported at $3.29 billion, was trading at $124.22 per share and carried a price-to-earnings ratio of 19.36 at the time of the transactions. External analysis noted in company materials characterized Palomar as appearing undervalued relative to its growth prospects, citing a price/earnings-to-growth (PEG) ratio of 0.36.
The insider activity coincides with a quarterly performance update that showed notable upside. For the third quarter of 2025, Palomar reported earnings per share of $2.01, ahead of an expected $1.57 consensus and representing a 28.03% positive surprise. Revenue for the period came in at $597.2 million versus projected revenues of $540.07 million.
Corporate activity during the quarter included Palomar's completion of its acquisition of The Gray Casualty & Surety Company. To finance the transaction and related needs, Palomar secured $450 million in financing composed of a $150 million revolving facility and a $300 million term loan. Separately, BCP finalized the sale of Gray Surety to Palomar, completing that element of the deal pipeline.
On the research front, Keefe, Bruyette & Woods updated its view of the company by raising its price target to $170 from $164 while maintaining an Outperform rating. The revised target was described as reflecting 19.3 times the firm's updated 2026 earnings per share estimate.
Key facts
- Armstrong sold 7,604 shares on Jan. 29 and 31, 2026, for approximately $927,354 at weighted prices of $121.7437 to $122.0432.
- Armstrong received 14,771 RSU shares through option exercises at an exercise price of $0.00 and now directly owns 98,904 shares with 348,388 held indirectly.
- Palomar reported Q3 2025 EPS of $2.01 and revenue of $597.2 million, both above consensus estimates, and closed the Gray Surety acquisition backed by $450 million of financing.
Takeaway
The transactions show concurrent insider selling and vesting activity against a backdrop of stronger-than-expected quarterly results and a strategic acquisition supported by fresh financing. Public valuations and third-party research updates reflect investor and analyst reassessment of Palomar's outlook.