Palomar Holdings, Inc. $PLMR Shares Sold by Hsbc Holdings PLC

Key Points

• HSBC Holdings cut its Palomar Holdings stake by 48% in the fourth quarter, selling 7,957 shares and leaving it with 8,630 shares worth about $1.17 million.
• Palomar reported better-than-expected earnings of $2.31 per share for the quarter, though revenue of $278.94 million fell well short of analysts’ expectations. Revenue still rose 59.7% year over year, and the company posted a net margin of 20.11%.
• Several analysts remain constructive on PLMR, with a consensus rating of Moderate Buy and an average price target of $150, even as some firms trimmed targets or downgraded the stock.

Hsbc Holdings PLC decreased its position in Palomar Holdings, Inc. (NASDAQ:PLMR - Free Report) by 48.0% during the fourth quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The firm owned 8,630 shares of the company's stock after selling 7,957 shares during the quarter. Hsbc Holdings PLC's holdings in Palomar were worth $1,170,000 as of its most recent SEC filing.

A number of other large investors also recently added to or reduced their stakes in PLMR. Janus Henderson Group PLC grew its stake in shares of Palomar by 250.1% in the fourth quarter. Janus Henderson Group PLC now owns 795,625 shares of the company's stock valued at $107,237,000 after buying an additional 568,360 shares in the last quarter. Alliancebernstein L.P. lifted its stake in Palomar by 290.2% during the 2nd quarter. Alliancebernstein L.P. now owns 497,080 shares of the company's stock worth $76,675,000 after acquiring an additional 369,697 shares in the last quarter. Sumitomo Mitsui Trust Group Inc. boosted its holdings in Palomar by 72.1% during the 4th quarter. Sumitomo Mitsui Trust Group Inc. now owns 785,165 shares of the company's stock valued at $105,809,000 after acquiring an additional 328,993 shares during the period. Balyasny Asset Management L.P. boosted its holdings in Palomar by 290.5% during the 4th quarter. Balyasny Asset Management L.P. now owns 308,734 shares of the company's stock valued at $41,605,000 after acquiring an additional 229,681 shares during the period. Finally, Atlas Capital Advisors Inc. purchased a new position in Palomar during the 4th quarter valued at about $24,477,000. 90.25% of the stock is currently owned by institutional investors and hedge funds.

Palomar Stock Performance

Shares of Palomar stock opened at $136.07 on Monday. The firm's fifty day simple moving average is $117.14 and its 200-day simple moving average is $123.15. The stock has a market capitalization of $3.61 billion, a price-to-earnings ratio of 18.95 and a beta of 0.41. Palomar Holdings, Inc. has a 12 month low of $100.81 and a 12 month high of $147.62. The company has a debt-to-equity ratio of 0.31, a current ratio of 0.49 and a quick ratio of 0.49.

Palomar (NASDAQ:PLMR - Get Free Report) last issued its quarterly earnings results on Wednesday, May 6th. The company reported $2.31 earnings per share for the quarter, topping analysts' consensus estimates of $2.17 by $0.14. Palomar had a net margin of 20.11% and a return on equity of 22.62%. The firm had revenue of $278.94 million during the quarter, compared to analysts' expectations of $557.79 million. During the same quarter in the prior year, the business earned $1.87 EPS. Palomar's quarterly revenue was up 59.7% compared to the same quarter last year. As a group, equities analysts forecast that Palomar Holdings, Inc. will post 8.93 earnings per share for the current year.

Insider Activity

In other news, CEO Mac Armstrong sold 3,500 shares of the stock in a transaction dated Monday, June 22nd. The shares were sold at an average price of $112.96, for a total transaction of $395,360.00. Following the completion of the sale, the chief executive officer owned 329,388 shares in the company, valued at approximately $37,207,668.48. This represents a 1.05% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, President Jon Christianson sold 6,863 shares of the company's stock in a transaction that occurred on Thursday, July 2nd. The shares were sold at an average price of $139.50, for a total value of $957,388.50. Following the sale, the president directly owned 66,478 shares of the company's stock, valued at approximately $9,273,681. This represents a 9.36% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last three months, insiders sold 22,977 shares of company stock valued at $2,933,488. Insiders own 3.70% of the company's stock.

Analyst Ratings Changes

Several research analysts have recently commented on PLMR shares. Weiss Ratings raised shares of Palomar from a "hold (c)" rating to a "hold (c+)" rating in a research note on Thursday, June 18th. Zacks Research downgraded shares of Palomar from a "strong-buy" rating to a "hold" rating in a research note on Friday, May 15th. JPMorgan Chase & Co. cut their price objective on Palomar from $160.00 to $150.00 and set an "overweight" rating on the stock in a research report on Tuesday, May 26th. Piper Sandler reduced their price objective on Palomar from $151.00 to $132.00 and set an "overweight" rating on the stock in a research note on Monday, May 11th. Finally, Keefe, Bruyette & Woods lifted their target price on Palomar from $162.00 to $166.00 and gave the company an "outperform" rating in a report on Wednesday, July 8th. Four analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the company's stock. Based on data from MarketBeat.com, the stock has an average rating of "Moderate Buy" and a consensus price target of $150.00.

Palomar Profile

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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