Palomar Holdings, Inc. (NASDAQ:PLMR) Given Consensus Recommendation of "Moderate Buy" by Brokerages

Key Points

• Analysts maintain a “Moderate Buy” consensus on Palomar Holdings, with four buy ratings and two holds. The average 12-month price target is $162.50, above the reported $136.82 opening price.
• Palomar reported second-quarter EPS of $2.36, beating the $2.19 consensus and rising from $1.76 a year earlier. Management is targeting $270 million–$280 million in adjusted net income and expects 2026 crop premiums to exceed $400 million.
• The company initiated a $0.45-per-share quarterly dividend, but higher claims losses and operating expenses pressured underwriting margins, while analyst estimates remained mixed.

Shares of Palomar Holdings, Inc. (NASDAQ:PLMR - Get Free Report) have been given an average rating of "Moderate Buy" by the six analysts that are covering the firm, Marketbeat reports. Two research analysts have rated the stock with a hold rating and four have issued a buy rating on the company. The average 1 year price target among analysts that have covered the stock in the last year is $162.50.

Several research analysts have recently issued reports on the stock. Zacks Research downgraded shares of Palomar from a "strong-buy" rating to a "hold" rating in a report on Friday, May 15th. Keefe, Bruyette & Woods increased their target price on shares of Palomar from $162.00 to $166.00 and gave the company an "outperform" rating in a research note on Wednesday, July 8th. Weiss Ratings raised Palomar from a "hold (c)" rating to a "hold (c+)" rating in a research report on Thursday, June 18th. JPMorgan Chase & Co. lifted their target price on Palomar from $150.00 to $167.00 and gave the stock an "overweight" rating in a research report on Monday, July 20th. Finally, Evercore set a $152.00 price target on Palomar in a research note on Friday, July 10th.

Palomar News Roundup

Here are the key news stories impacting Palomar this week:

• Positive Sentiment: Palomar reported second-quarter EPS of $2.36, exceeding the $2.19 consensus estimate and rising from $1.76 a year earlier. Results benefited from higher premiums and increased investment income. Palomar Q2 earnings report
• Positive Sentiment: Management is targeting $270 million to $280 million of adjusted net income and raised its 2026 crop premium outlook to more than $400 million. The guidance highlights continued expansion and diversification, particularly in crop insurance. Palomar profit and crop premium guidance
• Positive Sentiment: Palomar initiated a quarterly dividend of $0.45 per share, payable September 2 to shareholders of record August 19. The dividend adds shareholder returns and signals confidence in the company’s cash-generation outlook. Palomar dividend announcement
• Neutral Sentiment: Analyst estimates were mixed: Zacks raised its FY2027 EPS forecast slightly to $9.70 from $9.66 and increased its Q1 2027 estimate to $2.22, but reduced estimates for Q1 and Q2 2028. Zacks maintained a “Hold” rating, suggesting limited conviction despite the near-term earnings strength. Palomar EPS estimate revisions
• Negative Sentiment: Higher claims losses and operating expenses pressured underwriting margins. Investors may view the strong premium growth cautiously if it does not translate into sustained underwriting profitability. Palomar Q2 business outlook
• Neutral Sentiment: COO Rodolphe Herve sold 1,207 shares for approximately $163,000 to cover tax-withholding obligations related to vested equity awards. Because the sale was administrative in nature, it is less likely to signal a negative view of PLMR. Palomar insider transaction filing

Palomar Stock Up 2.1%

PLMR opened at $136.82 on Friday. The business has a 50 day moving average of $126.23 and a 200-day moving average of $123.66. The stock has a market capitalization of $3.63 billion, a price-to-earnings ratio of 18.39 and a beta of 0.40. The company has a current ratio of 0.50, a quick ratio of 0.49 and a debt-to-equity ratio of 0.30. Palomar has a 1-year low of $100.81 and a 1-year high of $147.62.

Palomar (NASDAQ:PLMR - Get Free Report) last released its earnings results on Tuesday, August 4th. The company reported $2.36 EPS for the quarter, beating the consensus estimate of $2.19 by $0.17. Palomar had a net margin of 18.61% and a return on equity of 23.28%. The firm had revenue of $314.42 million during the quarter, compared to analysts' expectations of $621.52 million. During the same period in the prior year, the company earned $1.76 EPS. As a group, sell-side analysts anticipate that Palomar will post 8.9 earnings per share for the current year.

Palomar Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Wednesday, September 2nd. Stockholders of record on Wednesday, August 19th will be given a dividend of $0.45 per share. The ex-dividend date is Wednesday, August 19th. This represents a $1.80 dividend on an annualized basis and a dividend yield of 1.3%.

Insider Transactions at Palomar

In other Palomar news, CEO Mac Armstrong sold 3,500 shares of the business's stock in a transaction on Monday, June 22nd. The shares were sold at an average price of $112.96, for a total value of $395,360.00. Following the sale, the chief executive officer owned 329,388 shares of the company's stock, valued at $37,207,668.48. The trade was a 1.05% decrease in their position. The sale was disclosed in a filing with the SEC, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, COO Rodolphe Herve sold 1,207 shares of the stock in a transaction on Friday, July 31st. The shares were sold at an average price of $135.35, for a total transaction of $163,367.45. Following the completion of the transaction, the chief operating officer owned 3,548 shares of the company's stock, valued at approximately $480,221.80. This represents a 25.38% 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. Over the last three months, insiders have sold 22,050 shares of company stock valued at $2,875,050. Company insiders own 3.70% of the company's stock.

Institutional Trading of Palomar

Institutional investors have recently made changes to their positions in the business. Geneos Wealth Management Inc. bought a new position in Palomar during the fourth quarter worth about $32,000. Kestra Advisory Services LLC bought a new stake in shares of Palomar in the 4th quarter valued at approximately $33,000. Rockefeller Capital Management L.P. grew its stake in shares of Palomar by 81.5% in the 4th quarter. Rockefeller Capital Management L.P. now owns 294 shares of the company's stock valued at $40,000 after purchasing an additional 132 shares during the period. Parallel Advisors LLC raised its holdings in shares of Palomar by 638.3% in the 1st quarter. Parallel Advisors LLC now owns 443 shares of the company's stock worth $53,000 after buying an additional 383 shares in the last quarter. Finally, Frazier Financial Advisors LLC acquired a new position in shares of Palomar in the 4th quarter worth approximately $54,000. 90.25% of the stock is currently 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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

Continue following MarketBeat

Add MarketBeat as your preferred source on Google to see our latest stories in your feed.

Add As Preferred Source