Recent insider selling of Palomar Holdings stock is seen as a negative sign. Low insider ownership suggests a lack of alignment with shareholders. Combined with identified investment risks, analysts are cautious about the company.

Investors' belief in Palomar Holdings' continued market outperformance likely explains its high P/E ratio. Strong future growth prospects justify this ratio and support the share price, but earnings deterioration could impact this outlook.

Palomar's CEO, Mac Armstrong, is thrilled about Bradley's appointment, citing his vast experience in insurance and reinsurance, especially in capital management, corporate development, strategic planning, and mergers and acquisitions, as a significant asset to Palomar and its ongoing Palomar 2X strategy.

Significant insider selling at Palomar Holdings, especially in the last three months, may worry investors. Despite profits, the absence of insider buying in the past year and history of sales calls for careful investment consideration.

The fact that insiders have been selling stock, coupled with no recorded insider purchases over the last three months, may suggest that the shares aren't cheap. While insider ownership shows some alignment between management and smaller shareholders, the insider selling activity calls for careful consideration prior to investing.