Palomar (NASDAQ:PLMR) Releases Quarterly Earnings Results, Beats Estimates By $0.45 EPS

Key Points

• Palomar reported quarterly EPS of $3.01, beating the $2.56 consensus estimate by $0.45 and rising from $2.01 in the year-ago quarter. Return on equity was 23.28%, with a net margin of 18.61%.
• Shares rose $1.83 to $144.04 in Wednesday trading. The stock’s consensus rating was “Moderate Buy”, with an average analyst price target of $160.
• Two executives sold shares to cover tax withholding on vested equity awards; overall, insiders sold 12,115 shares worth about $1.62 million over the prior 90 days.

Palomar (NASDAQ:PLMR - Get Free Report) announced its earnings results on Wednesday. The company reported $3.01 EPS for the quarter, topping the consensus estimate of $2.56 by $0.45, FiscalAI reports. Palomar had a return on equity of 23.28% and a net margin of 18.61%. During the same period in the prior year, the company posted $2.01 EPS.

Palomar Price Performance

Shares of PLMR traded up $1.83 during mid-day trading on Wednesday, hitting $144.04. 553,357 shares of the company traded hands, compared to its average volume of 245,263. Palomar has a one year low of $100.81 and a one year high of $147.62. The company has a current ratio of 0.50, a quick ratio of 0.50 and a debt-to-equity ratio of 0.30. The business has a 50-day moving average of $133.99 and a 200 day moving average of $126.62. The stock has a market capitalization of $3.79 billion, a price-to-earnings ratio of 17.71 and a beta of 0.28.

Insider Activity at Palomar

In other Palomar news, insider Jonathan Knutzen sold 296 shares of the company's stock in a transaction on Tuesday, August 18th. The stock was sold at an average price of $127.75, for a total transaction of $37,814.00. Following the transaction, the insider owned 28,250 shares of the company's stock, valued at approximately $3,608,937.50. This represents a 1.04% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, President Jon Christianson sold 528 shares of the stock in a transaction on Tuesday, August 18th. The shares were sold at an average price of $127.75, for a total value of $67,452.00. Following the completion of the transaction, the president owned 66,970 shares in the company, valued at $8,555,417.50. The trade was a 0.78% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The sale was made to cover tax withholding obligations related to the vesting of equity awards. In the last ninety days, insiders sold 12,115 shares of company stock worth $1,619,923. 3.70% of the stock is currently owned by company insiders.

Analyst Ratings Changes

PLMR has been the subject of several research analyst reports. Evercore set a $152.00 price objective on Palomar in a research report on Friday, July 10th. Keefe, Bruyette & Woods boosted their price objective on Palomar from $166.00 to $167.00 and gave the stock an "outperform" rating in a research note on Monday, August 10th. Zacks Research cut Palomar from a "strong-buy" rating to a "hold" rating in a report on Thursday, October 29th. JPMorgan Chase & Co. decreased their target price on Palomar from $167.00 to $156.00 and set an "overweight" rating on the stock in a report on Friday, October 9th. Finally, Weiss Ratings lowered Palomar from a "buy (b+)" rating to a "buy (b)" rating in a research note on Friday, October 30th. Five investment analysts have rated the stock with a Buy rating and one has issued a Hold rating to the stock. According to MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and a consensus price target of $160.00.

About Palomar

Palomar Holdings, Inc is a specialty insurance company that provides property and casualty insurance products in markets that may be underserved by traditional insurers. The company focuses on risks that are complex, difficult to place or exposed to natural catastrophes, using specialized underwriting and risk-management capabilities.

Its offerings include residential and commercial earthquake insurance, inland marine coverage, specialty property insurance, casualty products, workers' compensation and other tailored insurance solutions.

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