Zacks Research Has Bearish Estimate for Palomar Q3 Earnings

Key Points

• Zacks Research lowered Palomar’s Q3 2026 EPS estimate to $2.38 from $2.42, while maintaining a “Hold” rating. The firm projects full-year 2026 EPS of $9.18, below the broader consensus estimate of $9.21.
• Despite near-term reductions, Zacks raised several longer-term full-year forecasts, including FY2027 EPS of $10.01 and FY2028 EPS of $10.74. Other analysts remain broadly positive, giving Palomar a consensus “Moderate Buy” rating and an average price target of $162.75.
• Palomar recently exceeded quarterly earnings expectations, reporting $2.36 EPS versus the $2.19 consensus estimate, and pays a quarterly dividend of $0.45 per share. Institutional investors own approximately 90.25% of the company’s stock.

Palomar Holdings, Inc. (NASDAQ:PLMR - Free Report) - Research analysts at Zacks Research cut their Q3 2026 earnings estimates for shares of Palomar in a note issued to investors on Friday, September 4th. Zacks Research analyst Team now anticipates that the company will earn $2.38 per share for the quarter, down from their prior estimate of $2.42. Zacks Research currently has a "Hold" rating on the stock. The consensus estimate for Palomar's current full-year earnings is $9.21 per share. Zacks Research also issued estimates for Palomar's Q4 2026 earnings at $2.58 EPS, FY2026 earnings at $9.18 EPS, Q1 2027 earnings at $2.32 EPS, Q2 2027 earnings at $2.24 EPS, Q3 2027 earnings at $2.74 EPS, Q4 2027 earnings at $2.70 EPS, FY2027 earnings at $10.01 EPS, Q1 2028 earnings at $2.92 EPS, Q2 2028 earnings at $2.69 EPS and FY2028 earnings at $10.74 EPS.

Several other research analysts have also recently commented on PLMR. JPMorgan Chase & Co. raised their target price on shares of Palomar from $150.00 to $167.00 and gave the stock an "overweight" rating in a report on Monday, July 20th. Evercore set a $152.00 price target on shares of Palomar in a research report on Friday, July 10th. Piper Sandler raised their price objective on shares of Palomar from $132.00 to $165.00 and gave the stock an "overweight" rating in a research note on Wednesday, July 15th. Keefe, Bruyette & Woods lifted their price objective 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. Finally, Weiss Ratings upgraded shares of Palomar from a "hold (c+)" rating to a "buy (b-)" rating in a research report on Thursday, September 3rd. Five analysts have rated the stock with a Buy rating and one has assigned a Hold rating to the company. Based on data from MarketBeat.com, the company has a consensus rating of "Moderate Buy" and a consensus target price of $162.75.

Palomar Price Performance

NASDAQ PLMR opened at $132.92 on Friday. Palomar has a 1 year low of $100.81 and a 1 year high of $147.62. The business's fifty day moving average is $134.39 and its two-hundred day moving average is $124.49. The stock has a market capitalization of $3.50 billion, a P/E ratio of 17.87 and a beta of 0.39. The company has a debt-to-equity ratio of 0.30, a quick ratio of 0.50 and a current ratio of 0.50.

Palomar (NASDAQ:PLMR - Get Free Report) last issued its quarterly earnings results on Tuesday, August 4th. The company reported $2.36 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.19 by $0.17. The company had revenue of $314.42 million for 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 period last year, the firm earned $1.76 EPS.

Institutional Trading of Palomar

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

Insider Buying and Selling at Palomar

In other Palomar news, President Jon Christianson sold 528 shares of Palomar stock in a transaction on Tuesday, August 18th. The shares were sold at an average price of $127.75, for a total transaction of $67,452.00. Following the completion of the sale, the president owned 66,970 shares of the company's stock, valued at $8,555,417.50. This trade represents a 0.78% decrease in their position. The sale was disclosed in a filing with the SEC, which is available at this hyperlink. 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 on Tuesday, August 18th. The shares were 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 in the company, valued at approximately $3,608,937.50. This represents a 1.04% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders sold a total of 23,665 shares of company stock valued at $3,138,093 in the last 90 days. Corporate insiders own 3.70% of the company's stock.

Palomar Dividend Announcement

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

Key Palomar News

Here are the key news stories impacting Palomar this week:

• Positive Sentiment: Zacks Research raised its FY2026 EPS estimate to $9.18 from $8.59, FY2027 EPS to $10.01 from $9.70, and FY2028 EPS to $10.74 from $10.45. The firm also increased estimates for Q4 2026, Q1 2027, Q2 2027 and Q2 2028, indicating stronger anticipated earnings growth over the next several years.
• Positive Sentiment: Palomar’s acquisition of Gray Surety is expanding its scale, national distribution and business diversification. The transaction supports management’s longer-term growth strategy and could reduce reliance on individual insurance lines. PLMR's Gray Surety Acquisition Boosts Scale and Diversification
• Neutral Sentiment: Zacks maintained a “Hold” rating. Its current full-year consensus estimate remains $9.21 per share, close to the revised FY2026 forecast of $9.18, suggesting limited immediate change to the broader valuation view.
• Neutral Sentiment: The reported short-interest data showed zero shares short and a zero-day days-to-cover ratio, but the figures included an invalid percentage change and may not provide a meaningful trading signal.
• Negative Sentiment: Zacks reduced its Q3 2026 EPS estimate to $2.38 from $2.42, Q3 2027 to $2.74 from $2.79, Q4 2027 to $2.70 from $2.71, and Q1 2028 to $2.92 from $3.08. These downward revisions may weigh on near-term sentiment despite the stronger full-year outlook.

About Palomar

Palomar Holdings, Inc NASDAQ: PLMR is a specialty insurance holding company focused on providing medical stop-loss coverage and related administrative services to self-funded employer health plans in the United States. The firm operates through two primary business segments—Medical Stop-Loss and Specialty Program Management—to deliver tailored risk protection and comprehensive program administration.

In its Medical Stop-Loss segment, Palomar underwrites excess and aggregate stop-loss policies designed to shield self-insured employers from catastrophic medical claims that exceed pre-determined retention levels.

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