Keefe, Bruyette & Woods Cuts Palomar (NASDAQ:PLMR) Price Target to $159.00

Key Points

• Keefe, Bruyette & Woods lowered Palomar’s price target to $159 from $186, while keeping an outperform rating. The new target still implies about 45% upside from the stock’s current price.
• Analyst sentiment remains generally positive, but several firms have trimmed expectations recently, including Piper Sandler and Weiss Ratings. Overall, Palomar still holds a consensus Buy rating with a consensus target of $150.25.
• Palomar recently reported earnings of $2.31 per share, beating estimates, while revenue rose 59.7% year over year. The stock was trading around $109.53, near its 52-week low of $107.51, and several insiders have sold shares in recent months.

Palomar (NASDAQ:PLMR - Get Free Report) had its price objective reduced by equities researchers at Keefe, Bruyette & Woods from $186.00 to $159.00 in a report issued on Wednesday,Benzinga reports. The brokerage presently has an "outperform" rating on the stock. Keefe, Bruyette & Woods' price objective would suggest a potential upside of 45.17% from the company's current price.

Other analysts have also recently issued reports about the company. Weiss Ratings cut Palomar from a "buy (b-)" rating to a "hold (c+)" rating in a research report on Thursday, May 7th. Piper Sandler reduced their price target on Palomar from $151.00 to $132.00 and set an "overweight" rating for the company in a research report on Monday. Wall Street Zen cut Palomar from a "buy" rating to a "hold" rating in a research note on Sunday, March 1st. Evercore assumed coverage on Palomar in a report on Monday, February 9th. They set an "outperform" rating and a $150.00 price target on the stock. Finally, JPMorgan Chase & Co. lifted their price objective on shares of Palomar from $155.00 to $160.00 and gave the company an "overweight" rating in a research note on Monday, February 23rd. One equities research analyst has rated the stock with a Strong Buy rating, four have given a Buy rating and one has assigned a Hold rating to the company's stock. According to MarketBeat, Palomar has a consensus rating of "Buy" and a consensus target price of $150.25.

Palomar Stock Performance

Palomar stock traded up $0.90 during midday trading on Wednesday, reaching $109.53. 40,414 shares of the stock traded hands, compared to its average volume of 257,977. Palomar has a fifty-two week low of $107.51 and a fifty-two week high of $175.85. The company has a current ratio of 0.49, a quick ratio of 0.50 and a debt-to-equity ratio of 0.31. The firm has a market cap of $2.90 billion, a price-to-earnings ratio of 15.25 and a beta of 0.49. The firm has a fifty day moving average price of $122.54 and a two-hundred day moving average price of $124.59.

Palomar (NASDAQ:PLMR - Get Free Report) last announced its quarterly earnings results on Wednesday, May 6th. The company reported $2.31 EPS for the quarter, beating the consensus estimate of $2.17 by $0.14. The company had revenue of $278.94 million for the quarter, compared to analyst estimates of $557.79 million. Palomar had a net margin of 20.11% and a return on equity of 22.62%. Palomar's revenue was up 59.7% compared to the same quarter last year. During the same quarter last year, the business earned $1.87 earnings per share. On average, equities research analysts forecast that Palomar will post 8.97 earnings per share for the current year.

Insider Transactions at Palomar

In other Palomar news, CEO Mac Armstrong sold 3,500 shares of the company's stock in a transaction that occurred on Tuesday, April 21st. The stock was sold at an average price of $130.77, for a total value of $457,695.00. Following the completion of the sale, the chief executive officer directly owned 336,388 shares in the company, valued at $43,989,458.76. This represents a 1.03% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO T Christopher Uchida sold 783 shares of Palomar stock in a transaction on Wednesday, February 18th. The shares were sold at an average price of $128.04, for a total value of $100,255.32. Following the transaction, the chief financial officer owned 14,752 shares in the company, valued at approximately $1,888,846.08. This trade represents a 5.04% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 21,720 shares of company stock worth $2,733,817 in the last three months. 3.70% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

A number of hedge funds have recently bought and sold shares of PLMR. Royal Bank of Canada boosted its position in shares of Palomar by 49.1% during the 1st quarter. Royal Bank of Canada now owns 2,956 shares of the company's stock valued at $406,000 after purchasing an additional 974 shares in the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. lifted its stake in Palomar by 5.4% during the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 15,427 shares of the company's stock valued at $2,115,000 after purchasing an additional 791 shares during the last quarter. NewEdge Advisors LLC bought a new stake in Palomar during the first quarter worth approximately $66,000. United Services Automobile Association bought a new stake in Palomar during the first quarter worth approximately $223,000. Finally, UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC grew its position in Palomar by 11.9% in the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 72,661 shares of the company's stock worth $9,960,000 after buying an additional 7,754 shares during the last quarter. 90.25% of the stock is owned by institutional investors and hedge funds.

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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