Zacks Research Brokers Boost Earnings Estimates for Palomar

Key Points

• Zacks Research raised its Palomar earnings estimates, forecasting Q2 2027 EPS of $2.30, up from $2.24, while projecting FY2028 EPS of $10.81 and maintaining a “Strong-Buy” rating.
• Palomar’s latest quarterly results exceeded expectations, with EPS of $2.36 versus the $2.19 consensus estimate; revenue was $314.42 million and net margin reached 18.61%.
• Analyst sentiment remains positive, with the stock holding a consensus “Buy” rating and an average price target of $162.75. Institutional investors own approximately 90.25% of Palomar’s shares.

Palomar Holdings, Inc. (NASDAQ:PLMR - Free Report) - Equities research analysts at Zacks Research increased their Q2 2027 EPS estimates for Palomar in a research note issued to investors on Thursday, October 1st. Zacks Research analyst Team now forecasts that the company will post earnings per share of $2.30 for the quarter, up from their previous forecast of $2.24. Zacks Research has a "Strong-Buy" rating on the stock. The consensus estimate for Palomar's current full-year earnings is $9.31 per share. Zacks Research also issued estimates for Palomar's Q1 2028 earnings at $2.88 EPS, Q2 2028 earnings at $2.79 EPS and FY2028 earnings at $10.81 EPS.

Palomar (NASDAQ:PLMR - Get Free Report) last issued its quarterly earnings data on Tuesday, August 4th. The company reported $2.36 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $2.19 by $0.17. The company had revenue of $314.42 million during the quarter, compared to analysts' expectations of $621.52 million. Palomar had a return on equity of 23.28% and a net margin of 18.61%.During the same quarter in the previous year, the company posted $1.76 earnings per share.

A number of other brokerages have also commented on PLMR. Evercore set a $152.00 price objective on Palomar in a report on Friday, July 10th. JPMorgan Chase & Co. lifted their target price on Palomar from $150.00 to $167.00 and gave the stock an "overweight" rating in a report on Monday, July 20th. Piper Sandler boosted their target price on shares of Palomar from $132.00 to $165.00 and gave the company an "overweight" rating in a research report on Wednesday, July 15th. Weiss Ratings upgraded shares of Palomar from a "buy (b-)" rating to a "buy (b)" rating in a research note on Thursday, September 24th. Finally, Keefe, Bruyette & Woods raised their price target on shares of Palomar from $166.00 to $167.00 and gave the stock an "outperform" rating in a research report on Monday, August 10th. One investment analyst has rated the stock with a Strong Buy rating and five have assigned a Buy rating to the stock. According to MarketBeat, the stock presently has an average rating of "Buy" and a consensus price target of $162.75.

Palomar Stock Performance

NASDAQ:PLMR opened at $125.93 on Friday. The stock has a 50 day simple moving average of $132.42 and a 200 day simple moving average of $125.31. The stock has a market cap of $3.31 billion, a P/E ratio of 16.93 and a beta of 0.35. Palomar has a 1-year low of $100.81 and a 1-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.

Institutional Investors Weigh In On Palomar

Large investors have recently bought and sold shares of the company. Sequoia Financial Advisors LLC acquired a new stake in shares of Palomar during the 2nd quarter worth approximately $221,000. Tidal Investments LLC raised its position in Palomar by 41.3% during the second quarter. Tidal Investments LLC now owns 16,583 shares of the company's stock valued at $2,096,000 after purchasing an additional 4,847 shares in the last quarter. Integrated Wealth Concepts LLC acquired a new position in Palomar during the second quarter valued at approximately $146,000. Arcus Capital Partners LLC lifted its stake in Palomar by 23.1% during the second quarter. Arcus Capital Partners LLC now owns 2,586 shares of the company's stock worth $327,000 after purchasing an additional 486 shares during the last quarter. Finally, Arizona State Retirement System lifted its stake in Palomar by 1.2% during the second quarter. Arizona State Retirement System now owns 7,364 shares of the company's stock worth $931,000 after purchasing an additional 84 shares during the last quarter. 90.25% of the stock is currently owned by institutional investors and hedge funds.

Insider Activity

In related news, COO Rodolphe Herve sold 1,207 shares of the firm's stock in a transaction on Friday, July 31st. The stock was sold at an average price of $135.35, for a total value of $163,367.45. Following the transaction, the chief operating officer owned 3,548 shares in the company, valued at approximately $480,221.80. This trade represents a 25.38% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, insider Jonathan Knutzen sold 296 shares of the business's stock in a transaction dated Tuesday, August 18th. The shares were sold at an average price of $127.75, for a total value of $37,814.00. Following the completion of the transaction, the insider directly owned 28,250 shares of the company's stock, valued at approximately $3,608,937.50. This trade represents a 1.04% decrease in their position. The SEC filing for this sale provides additional information. The sale was made to cover tax withholding obligations related to the vesting of equity awards. In the last quarter, insiders sold 16,322 shares of company stock worth $2,198,116. 3.70% of the stock is owned by insiders.

Palomar Dividend Announcement

The business also recently disclosed a quarterly dividend, which was paid on Wednesday, September 2nd. Shareholders of record on Wednesday, August 19th were issued a $0.45 dividend. The ex-dividend date of this dividend was Wednesday, August 19th. This represents a $1.80 annualized dividend and a yield of 1.4%. Palomar's payout ratio is currently 24.19%.

About Palomar

Palomar Holdings, Inc is a specialty insurance company that provides property and casualty insurance products for risks that may be underserved by standard insurance carriers. The company focuses on markets where specialized underwriting expertise is important, including catastrophe-exposed property and other complex commercial and personal insurance risks.

Its offerings include commercial and residential property coverage, casualty insurance, specialty programs, and other products designed for areas such as earthquake, wind, flood, and other natural catastrophe exposures.

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