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Hallmark Financial Services, Inc. (HALL)

NasdaqGM - NasdaqGM Real Time Price. Currency in USD
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4.4600-0.0900 (-1.98%)
At close: 04:00PM EST
4.5600 +0.10 (+2.24%)
After hours: 04:44PM EST
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  • T
    T
    “ Hallmark has expanded our footprint in the Dallas office and we are wrapping up the build-out on a new floor. We look forward to welcoming our associates into this new space, as well as new team members across the organization. Apply today to join us! ”

    Hallmark expanded
  • W
    William
    confidence builds with incremental volume increasing. it's no small token a 30 k buying by insider for which insiders have been longterm stakehders 10 years plus. nest eggs safe with better returns then bonds. I am 2 yrs long, patient calm cool collecting...buyout soon. too much wealth sloshing around that needs home..
    Bullish
  • Z
    Zachary
    Board Director Scott Berlin just picked up 30,000 shares at $4.64...always nice to see!
  • G
    Ganian
    8-K j posted yesterday. Hallmark has a new President. Mark Schwartz will remain as Chairman and CEO.
  • W
    William
    earnings prospects from industry insurance premiums going up. another earnings exceeding expectations as well as a buy out speculating and delivering should get 10 plus ➕ 😀 by 1st qtr
    Bullish
  • F
    Frank
    The cancellation of the spinoff, and Zach's speculation regarding the urgent amendment to the RSU seems to point in the direction of an outright sale.

    Hall has something very valuable in the E&S space at the moment, particularly in the excess auto vertical - capacity. They are worthy of a buyout just based on that alone. Their excess auto book should not be confused with their primary auto book which crashed and burned, two totally different things. What HALL is lacking however, is underwriting talent in the excess auto book after the Damonte team left a few years ago. So they've treaded lightly as a market player ever since, but they still have the untapped capacity. Selling to a larger firm who could use the capacity, paper, and have the underwriting talent to pair, would make a lot of sense.

    Spinning off the specialty commercial (which included the valuable excess auto) never solved for the lack of underwriting talent, so it too would have died on the vine eventually.
  • Z
    Zachary
    This RSU Award Agreement filed 12/21 is almost identical to the previous form RSU Award Agreement that Hallmark was using (filed several years ago). Notable, however, is that this new version includes additional detail on the criteria and procedure for early vesting of performance-based RSUs upon a change in control (i.e., an acquisition). Specifically, this new version notes that if a change of control occurs prior to the first vesting date, then the "performance criteria specified in the Exhibit(s) hereto shall be deemed satisfied to the Target performance level" (this language was not included in the previous version). This is important, because there are certain tax benefits associated with performance-based equity awards that would not apply to non-performance-based equity awards; and, without the clarifying language that Hallmark has added here, it was not explicitly clear that performance criteria would be considered 'met' under a change of control. To me, this feels like a last-minute, 'cover yourself' edit by a lawyer, filed just before a transaction announcement, to ensure that Hallmark has its liabilities better-covered in the event that their attempt to qualify these grants as 'performance-based' gets challenged down the road.

    M&A lawyers are swamped with work right now, including many pending deals that need to be completed before year-end. I have a hard time believing that anyone would be pushing out a minor edit to a years-old RSU Award Agreement if the edit were not truly important and urgent. And considering the nature of the changes that were made, I see acquisition announcement written on the wall...
  • Z
    Zachary
    Got a funny feeling that Mista Schwarz just turned on the buyback machine
  • K
    Ken
    Think the IPO was not a good idea. Glad to see them stand down. They are on solid footing, seems they need to prove themselves with some consistent green quarters which I think they can do. Not ruling out sale in entirety - especially in 'specialty market'. but not counting on it. Think will work its way back to book value in 2022/2023. Speed and premium to book will depend on quarterly ER(s). Still a great stock to own.
  • X
    XDSL
    HALL + IQST EV battery manuf + ALPP Drone manuf + XDSL New EV tech + GULTU + AABB Crypto stock
    Bullish
  • R
    Rickey
    Just noticed Zack's, FWIW, has Hallmark as a Strong Buy #1 ranking. Not sure how long they've had it at that, and not sure how much stock (no pun intended) I put into Zack's ratings.
  • W
    William
    goodbegetsgoodbegetsgod
    merry Christmas 🎅 🎄 ❤ ♥ 💕 💖 🤶 🎄

    DALLAS, Dec. 23, 2021 (GLOBE NEWSWIRE) -- Hallmark Financial Services, Inc. (the “Company” or “Hallmark”), a property and casualty insurance company comprised of three business segments (Specialty Commercial, Standard Commercial, and Personal), today announced that it is no longer actively pursuing the previously announced separation of its Specialty Commercial business segment.  As a result, the Company does not intend to proceed with the previously announced initial public offering of the specialty commercial business.  
    Current evaluations by Hallmark’s board of directors note the significant progress achieved over the past 18 months, including the successful completion of a loss portfolio transfer transaction, improved underlying operating results (including pre-tax income of $14.6 million and 6% growth in book value per share for the nine months ended September 30, 2021), and A.M. Best’s recent affirmation of Hallmark’s Financial Strength Rating (FSR) of A- (Excellent).
    “Hallmark and its subsidiaries are well positioned to benefit from current conditions in the insurance market, including a continuing favorable pricing environment. Exacting focus on underwriting discipline and the long-term growth and profitability of each of our business segments represents the greatest opportunity to enhance and realize the significant inherent value in each of them,” said Mark Schwarz, Hallmark’s Executive Chairman, President and Chief Executive Officer.
    The Hallmark Board will continue to evaluate all actions that may enhance shareholder returns. The results of future analysis could differ materially from the present indications for a variety of reasons including potential fluctuations in operating results, management of growth and surplus, market conditions, competition, new business opportunities and the timing of related investments.
    Bullish
  • K
    Ken
    2022, 2023 will be north of 10 with very low downside risk. Maybe a few neg eps quarters, they had this pattern for 10 years with favorable stock price vs book and prior to book incident.
    Total gem in a very overheated and troubled market. 22 GLTA.
  • W
    William
    spin off or sale is only way for longterm owner to cash out with small float and trading volume. I recognized this two years ago and loaded up. announcement any day
    ...probably 15
    Bullish
  • m
    m3nikma7i
    Hello -- new to this name.

    Can anyone outline what the state of the planned IPO for the speciality commercial business is? Will this go ahead? When? Also, why are people here talking about an outright sale of the company? Why would that be likely? And again, what would be the timelines?

    Thanks for your help!
  • W
    William
    interesting that they waited till years end. shows accountability

    buy out maybe makes more sense. way less complicated
    Bullish
  • Z
    Zachary
    It seems to me like Hallmark's market maker is providing unlimited supply at ~$4.00 / share. Have not seen such volume on the ask in a long time, which is odd, given that there is far less reason to sell today than there was when the price last hit this range.

    I'm not a technical trader at all, purely focused on company fundamentals, but can't help but notice...
  • A
    Anonymous
    I agree it's cheap, but needs another quarter or two to prove the results are sustainable. If they produce these results for another two quarters, it should be at least $10 (which will still be slightly under book at that point).
  • D
    Dave
    Congrats all! These results look pretty solid to me after reading over the 10-Q. They didn't break out as much by line in their PDF presentation, but from the 10-Q combined ratio in specialty commercial is now absolutely phenomenal at 83% (!!), standard commercial actually perked up quite a bit to 92.5 with favorable PYD, and personal lines continue consistently mediocre to awful at 124.8.

    Still not a peep about interminable potential "IPO" or other discussions and disppointingly no recent action on their stock repurchase program at these discounted levels. From the outside looking in, it seems they need to bite the bullet and sell or run off the unprofitable personal lines business, then simply focus on continuing to deliver profitable underwriting and resume buying back shares at a discount. Thoughts?
    Bullish
  • M
    Mike
    Hopefully we are on the way USD 5 and it can hold there there , unlike it’s pullback from above 5 , 5+ months ago. I know the optimists believe it should be at 9 , but it will actually take a further 2/3 quarters of positive results to get to 7 . Management need to prove their “smarts”.
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