Palomar (NASDAQ:PLMR) Releases Quarterly Earnings Results

Key Points

• EPS beat: Palomar reported $2.31 EPS versus a $2.17 consensus, but revenue came in at $278.94 million well below the $557.79 million estimate, although revenue was up 59.7% year-over-year.
• Shares fell 0.9% to $110.75 on heavy volume; the company has a market cap of $2.94 billion and a trailing P/E of about 15.4.
• Insider selling totaled 21,720 shares (~$2.73M) in the past three months while analysts hold a consensus Buy rating with an average price target of $161.75 amid mixed individual calls.

Palomar (NASDAQ:PLMR - Get Free Report) posted its quarterly earnings results on Wednesday. The company reported $2.31 EPS for the quarter, topping the consensus estimate of $2.17 by $0.14, FiscalAI reports. The business had revenue of $278.94 million during the quarter, compared to the consensus estimate of $557.79 million. Palomar had a net margin of 22.50% and a return on equity of 22.77%. The company's quarterly revenue was up 59.7% compared to the same quarter last year. During the same quarter in the previous year, the firm posted $1.87 earnings per share.

Palomar Trading Down 0.9%

Shares of PLMR stock traded down $0.98 on Wednesday, reaching $110.75. 633,306 shares of the stock were exchanged, compared to its average volume of 242,998. The business's 50 day moving average price is $123.41 and its 200 day moving average price is $124.68. The company has a market capitalization of $2.94 billion, a price-to-earnings ratio of 15.42 and a beta of 0.49. Palomar has a twelve month low of $107.75 and a twelve month high of $175.85.

Insider Activity

In related news, insider Jonathan Knutzen sold 281 shares of the business's stock in a transaction on 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 sale was disclosed in a document filed with the SEC, which is accessible through the SEC website. Also, President Jon Christianson sold 3,000 shares of the business's stock in a transaction on Tuesday, April 7th. The stock was sold at an average price of $125.00, for a total transaction of $375,000.00. Following the transaction, the president owned 62,919 shares of the company's stock, valued at approximately $7,864,875. The trade was a 4.55% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last three months, insiders have sold 21,720 shares of company stock worth $2,733,817. 3.70% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Palomar

Several large investors have recently bought and sold shares of PLMR. Kestra Advisory Services LLC acquired a new position in Palomar in the fourth quarter valued at $33,000. Advisory Services Network LLC acquired a new position in Palomar in the third quarter valued at $57,000. NewEdge Advisors LLC acquired a new position in Palomar in the first quarter valued at $66,000. iSAM Funds UK Ltd acquired a new position in Palomar in the third quarter valued at $81,000. Finally, Smartleaf Asset Management LLC boosted its stake in Palomar by 25.6% in the fourth quarter. Smartleaf Asset Management LLC now owns 672 shares of the company's stock valued at $91,000 after acquiring an additional 137 shares in the last quarter. Institutional investors and hedge funds own 90.25% of the company's stock.

Analysts Set New Price Targets

Several research firms have commented on PLMR. Evercore began coverage on shares of Palomar in a research note on Monday, February 9th. They issued an "outperform" rating and a $150.00 price target for the company. Keefe, Bruyette & Woods boosted their price target on shares of Palomar from $183.00 to $186.00 and gave the stock an "outperform" rating in a research note on Tuesday, April 7th. JPMorgan Chase & Co. boosted their price target on shares of Palomar from $155.00 to $160.00 and gave the stock an "overweight" rating in a research note on Monday, February 23rd. Wall Street Zen downgraded shares of Palomar from a "buy" rating to a "hold" rating in a research note on Sunday, March 1st. Finally, Zacks Research upgraded shares of Palomar from a "hold" rating to a "strong-buy" rating in a research note on Thursday, April 16th. One research analyst has rated the stock with a Strong Buy rating and five have assigned a Buy rating to the company's stock. Based on data from MarketBeat, the company has a consensus rating of "Buy" and a consensus price target of $161.75.

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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