Palomar Holdings, Inc. (NASDAQ:PLMR) Receives Consensus Recommendation of "Buy" from Analysts

Key Points

• Analyst consensus: Six analysts give Palomar a consensus "Buy" (five Buy, one Strong Buy) with an average 12‑month price target of $161.75.
• Strong quarterly results: The company beat estimates with $2.24 EPS vs. $2.06 expected and revenue of $253.36M (vs. $204.58M), a 62.7% year‑over‑year revenue increase with a 22.5% net margin.
• Insider and ownership activity: Insiders sold about 46,572 shares (~$5.76M) recently, including CEO Mac Armstrong, while institutional investors hold roughly 90.25% of the stock.

Palomar Holdings, Inc. (NASDAQ:PLMR - Get Free Report) has been given a consensus recommendation of "Buy" by the six ratings firms that are currently covering the firm, Marketbeat.com reports. Five investment analysts have rated the stock with a buy recommendation and one has assigned a strong buy recommendation to the company. The average twelve-month target price among brokerages that have issued a report on the stock in the last year is $161.75.

A number of equities research analysts have issued reports on PLMR shares. Zacks Research raised shares of Palomar from a "hold" rating to a "strong-buy" rating in a research report on Thursday, April 16th. Wall Street Zen downgraded shares of Palomar from a "buy" rating to a "hold" rating in a research report on Sunday, March 1st. JPMorgan Chase & Co. upped their price objective on shares of Palomar from $155.00 to $160.00 and gave the stock an "overweight" rating in a research report on Monday, February 23rd. Weiss Ratings raised shares of Palomar from a "hold (c+)" rating to a "buy (b-)" rating in a research report on Wednesday, April 22nd. Finally, Evercore started coverage on shares of Palomar in a research report on Monday, February 9th. They issued an "outperform" rating and a $150.00 price objective for the company.

Palomar Stock Performance

Shares of PLMR stock opened at $127.12 on Wednesday. Palomar has a 52-week low of $107.75 and a 52-week high of $175.85. The company has a 50-day simple moving average of $123.93 and a two-hundred day simple moving average of $124.69. The company has a market capitalization of $3.37 billion, a price-to-earnings ratio of 17.70 and a beta of 0.54.

Palomar (NASDAQ:PLMR - Get Free Report) last issued its quarterly earnings data on Wednesday, February 11th. The company reported $2.24 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $2.06 by $0.18. Palomar had a net margin of 22.50% and a return on equity of 22.77%. The business had revenue of $253.36 million during the quarter, compared to the consensus estimate of $204.58 million. During the same period in the prior year, the firm posted $1.52 EPS. The firm's quarterly revenue was up 62.7% compared to the same quarter last year. On average, sell-side analysts forecast that Palomar will post 8.97 EPS for the current fiscal year.

Insider Activity

In other Palomar news, CEO Mac Armstrong sold 3,500 shares of the business's stock in a transaction dated Tuesday, April 21st. The shares were sold at an average price of $130.77, for a total value of $457,695.00. Following the transaction, the chief executive officer directly owned 336,388 shares in the company, valued at $43,989,458.76. The trade was a 1.03% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Jonathan Knutzen sold 281 shares of the business's stock in a transaction dated Wednesday, February 18th. The shares were sold at an average price of $128.04, for a total transaction of $35,979.24. Following the completion of the transaction, the insider owned 27,579 shares in the company, valued at approximately $3,531,215.16. The trade was a 1.01% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last quarter, insiders sold 46,572 shares of company stock valued at $5,764,807. 3.70% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Richardson Financial Services Inc. boosted its stake in Palomar by 210.0% in the third quarter. Richardson Financial Services Inc. now owns 217 shares of the company's stock valued at $25,000 after acquiring an additional 147 shares during the last quarter. Salomon & Ludwin LLC purchased a new position in Palomar in the third quarter valued at about $25,000. Geneos Wealth Management Inc. purchased a new position in Palomar in the fourth quarter valued at about $32,000. Kestra Advisory Services LLC purchased a new position in Palomar in the fourth quarter valued at about $33,000. Finally, Rockefeller Capital Management L.P. boosted its stake in Palomar by 81.5% in the fourth quarter. Rockefeller Capital Management L.P. now owns 294 shares of the company's stock valued at $40,000 after acquiring an additional 132 shares during the last quarter. 90.25% of the stock is currently owned by hedge funds and other institutional investors.

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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