Palomar Holdings, Inc. (NASDAQ:PLMR) Receives Average Recommendation of "Moderate Buy" from Brokerages

Key Points

• Palomar Holdings has a consensus “Moderate Buy” rating from six analysts, with four buy ratings and two hold ratings. The average 12-month price target is $150.
• The company recently reported better-than-expected EPS of $2.31, beating estimates, while revenue rose 59.7% year over year. Analysts expect Palomar to generate 8.93 EPS for the full year.
• There has been notable insider selling, including stock sales by President Jon Christianson and CEO Mac Armstrong. At the same time, institutional investors remain heavily involved, with 90.25% of shares held by hedge funds and other institutions.

Palomar Holdings, Inc. (NASDAQ:PLMR - Get Free Report) has received a consensus recommendation of "Moderate Buy" from the six analysts that are covering the firm, Marketbeat Ratings reports. Two equities research analysts have rated the stock with a hold rating and four have issued a buy rating on the company. The average 12 month target price among brokerages that have issued a report on the stock in the last year is $150.00.

Several research firms recently weighed in on PLMR. Zacks Research downgraded Palomar from a "strong-buy" rating to a "hold" rating in a research report on Friday, May 15th. Piper Sandler dropped their price objective on shares of Palomar from $151.00 to $132.00 and set an "overweight" rating for the company in a research note on Monday, May 11th. Keefe, Bruyette & Woods increased their price objective on shares of Palomar from $162.00 to $166.00 and gave the stock an "outperform" rating in a report on Wednesday, July 8th. Weiss Ratings raised shares of Palomar from a "hold (c)" rating to a "hold (c+)" rating in a research report on Thursday, June 18th. Finally, Evercore set a $152.00 target price on shares of Palomar in a report on Friday.

Palomar Stock Performance

Shares of PLMR opened at $136.07 on Monday. Palomar has a fifty-two week low of $100.81 and a fifty-two week high of $147.62. The company has a market capitalization of $3.61 billion, a PE ratio of 18.95 and a beta of 0.41. The stock has a fifty day moving average of $117.14 and a two-hundred day moving average of $123.15. The company has a debt-to-equity ratio of 0.31, a quick ratio of 0.49 and a current ratio of 0.49.

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

Insiders Place Their Bets

In other news, President Jon Christianson sold 6,863 shares of the business's stock in a transaction on Thursday, July 2nd. The shares were sold at an average price of $139.50, for a total transaction of $957,388.50. Following the completion of the sale, the president directly owned 66,478 shares of the company's stock, valued at $9,273,681. The trade was a 9.36% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Mac Armstrong sold 3,500 shares of the company's stock in a transaction on Monday, June 22nd. The stock was 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 approximately $37,207,668.48. The trade was a 1.05% 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. Insiders have sold a total of 22,977 shares of company stock valued at $2,933,488 over the last quarter. Company insiders own 3.70% of the company's stock.

Institutional Investors Weigh In On Palomar

A number of institutional investors have recently added to or reduced their stakes in the company. Royal Bank of Canada raised its holdings in shares of Palomar by 49.1% in the 1st quarter. Royal Bank of Canada now owns 2,956 shares of the company's stock worth $406,000 after purchasing an additional 974 shares during the period. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. grew its holdings in shares of Palomar by 5.4% during the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 15,427 shares of the company's stock worth $2,115,000 after purchasing an additional 791 shares during the period. NewEdge Advisors LLC purchased a new stake in shares of Palomar during the 1st quarter worth about $66,000. United Services Automobile Association acquired a new stake in Palomar during the 1st quarter worth approximately $223,000. Finally, UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC increased its position in Palomar by 11.9% during the 1st 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 purchasing an additional 7,754 shares in the last quarter. Hedge funds and other institutional investors own 90.25% of the company's stock.

Palomar Company 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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