Palomar (NASDAQ:PLMR) Posts Quarterly Earnings Results, Beats Expectations By $0.17 EPS

Key Points

• Palomar beat quarterly EPS expectations: The company reported $2.36 per share, $0.17 above consensus estimates of $2.19. Revenue was $314.42 million, below analysts’ $621.52 million estimate.
• Shares slipped 0.3% to $136.11, while Palomar reported a 20.11% net margin and 22.62% return on equity.
• Analysts maintain a generally positive outlook, with a “Moderate Buy” consensus and a $162.50 average price target; insiders sold 22,050 shares worth approximately $2.88 million over the past 90 days.

Palomar (NASDAQ:PLMR - Get Free Report) announced its quarterly earnings data on Tuesday. The company reported $2.36 earnings per share for the quarter, beating analysts' consensus estimates of $2.19 by $0.17, FiscalAI reports. The firm had revenue of $314.42 million for the quarter, compared to analyst estimates of $621.52 million. Palomar had a net margin of 20.11% and a return on equity of 22.62%.

Palomar Stock Down 0.3%

PLMR stock traded down $0.40 during mid-day trading on Tuesday, reaching $136.11. The company had a trading volume of 171,135 shares, compared to its average volume of 270,371. The company has a market capitalization of $3.61 billion, a price-to-earnings ratio of 18.96 and a beta of 0.40. The company has a debt-to-equity ratio of 0.31, a quick ratio of 0.49 and a current ratio of 0.49. The firm has a fifty day simple moving average of $124.76 and a 200 day simple moving average of $123.54. Palomar has a fifty-two week low of $100.81 and a fifty-two week high of $147.62.

Insider Activity at Palomar

In other Palomar news, CEO Mac Armstrong sold 3,500 shares of the company's stock in a transaction on Tuesday, July 21st. The shares were sold at an average price of $137.26, for a total transaction of $480,410.00. Following the completion of the transaction, the chief executive officer owned 325,888 shares in the company, valued at approximately $44,731,386.88. This represents a 1.06% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. 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 dated 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 directly owned 3,548 shares of the company's stock, valued at approximately $480,221.80. This trade represents a 25.38% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders sold 22,050 shares of company stock valued at $2,875,050 in the last ninety days. 3.70% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

Several large investors have recently modified their holdings of the stock. Kestra Advisory Services LLC bought a new position in Palomar during the 4th quarter worth approximately $33,000. Advisory Services Network LLC acquired a new stake in shares of Palomar in the 3rd quarter worth about $57,000. NewEdge Advisors LLC bought a new stake in Palomar in the 1st quarter valued at about $66,000. iSAM Funds UK Ltd bought a new position in Palomar in the 3rd quarter worth about $81,000. Finally, Smartleaf Asset Management LLC raised its holdings in shares of Palomar by 25.6% during the fourth quarter. Smartleaf Asset Management LLC now owns 672 shares of the company's stock valued at $91,000 after buying an additional 137 shares during the last quarter. 90.25% of the stock is currently owned by hedge funds and other institutional investors.

Analyst Ratings Changes

PLMR has been the subject of several research analyst reports. JPMorgan Chase & Co. raised their price objective on Palomar from $150.00 to $167.00 and gave the stock an "overweight" rating in a research note on Monday, July 20th. 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 lowered shares of Palomar from a "strong-buy" rating to a "hold" rating in a research report on Friday, May 15th. Evercore set a $152.00 target price on Palomar in a research report on Friday, July 10th. Finally, Keefe, Bruyette & Woods upped their price target on Palomar from $162.00 to $166.00 and gave the stock an "outperform" rating in a report on Wednesday, July 8th. Four investment analysts have rated the stock with a Buy rating and two have issued a Hold rating to the stock. Based on data from MarketBeat, Palomar presently has an average rating of "Moderate Buy" and a consensus target price of $162.50.

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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