Palomar (NASDAQ:PLMR) Shares Down 5.4% - Time to Sell?

Key Points

• Palomar Holdings, Inc. (NASDAQ:PLMR) saw a significant share price drop of 5.4%, closing at $110.50 after trading as low as $112.38.
• Several brokerages have decreased their price targets for Palomar, with Piper Sandler lowering it from $177.00 to $151.00, while Evercore ISI cut theirs from $168.00 to $134.00, indicating cautious sentiment.
• Palomar reported a strong earnings quarter, achieving $1.76 EPS, exceeding estimates, and a revenue increase of 47.6% compared to the same period last year.

Palomar Holdings, Inc. (NASDAQ:PLMR - Get Free Report)'s share price fell 5.4% during mid-day trading on Wednesday . The company traded as low as $112.38 and last traded at $110.50. 81,588 shares traded hands during trading, a decline of 72% from the average session volume of 293,983 shares. The stock had previously closed at $116.75.

Wall Street Analysts Forecast Growth

A number of brokerages have issued reports on PLMR. Piper Sandler reduced their price objective on shares of Palomar from $177.00 to $151.00 and set an "overweight" rating on the stock in a research note on Wednesday, August 6th. JPMorgan Chase & Co. reduced their price target on shares of Palomar from $170.00 to $158.00 and set an "overweight" rating on the stock in a research note on Monday, August 11th. Evercore ISI reduced their price target on shares of Palomar from $168.00 to $134.00 and set an "in-line" rating on the stock in a research note on Wednesday. Keefe, Bruyette & Woods reduced their price target on shares of Palomar from $204.00 to $172.00 and set an "outperform" rating on the stock in a research note on Friday, August 8th. Finally, Wall Street Zen downgraded shares of Palomar from a "buy" rating to a "hold" rating in a research note on Saturday, July 5th. Five investment analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the stock. Based on data from MarketBeat.com, the company presently has an average rating of "Moderate Buy" and a consensus target price of $160.17.

Palomar Trading Down 6.3%

The firm's 50-day moving average is $122.13 and its 200 day moving average is $140.23. The firm has a market capitalization of $2.93 billion, a price-to-earnings ratio of 19.26 and a beta of 0.34.

Palomar (NASDAQ:PLMR - Get Free Report) last posted its earnings results on Monday, August 4th. The company reported $1.76 EPS for the quarter, topping the consensus estimate of $1.68 by $0.08. Palomar had a net margin of 22.71% and a return on equity of 20.35%. The business had revenue of $496.29 million for the quarter, compared to the consensus estimate of $173.86 million. During the same period last year, the company earned $1.25 EPS. The firm's revenue was up 47.6% compared to the same quarter last year. Analysts predict that Palomar Holdings, Inc. will post 5.99 EPS for the current year.

Insider Buying and Selling at Palomar

In other Palomar news, CFO T Christopher Uchida sold 500 shares of the firm's stock in a transaction that occurred on Wednesday, August 20th. The shares were sold at an average price of $121.59, for a total transaction of $60,795.00. Following the completion of the transaction, the chief financial officer owned 7,168 shares in the company, valued at approximately $871,557.12. This trade represents a 6.52% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, President Jon Christianson sold 521 shares of the firm's stock in a transaction that occurred on Monday, August 18th. The stock was sold at an average price of $120.13, for a total transaction of $62,587.73. Following the transaction, the president owned 59,036 shares of the company's stock, valued at approximately $7,091,994.68. The trade was a 0.87% decrease in their position. The disclosure for this sale can be found here. Insiders sold 21,905 shares of company stock worth $2,839,676 over the last quarter. Insiders own 3.70% of the company's stock.

Institutional Trading of Palomar

Several hedge funds have recently modified their holdings of PLMR. Allworth Financial LP increased its stake in shares of Palomar by 1,970.0% in the 2nd quarter. Allworth Financial LP now owns 207 shares of the company's stock valued at $32,000 after acquiring an additional 197 shares in the last quarter. Nisa Investment Advisors LLC increased its stake in shares of Palomar by 185.3% in the 1st quarter. Nisa Investment Advisors LLC now owns 311 shares of the company's stock valued at $43,000 after acquiring an additional 202 shares in the last quarter. Maseco LLP bought a new stake in shares of Palomar in the 2nd quarter valued at $45,000. Opal Wealth Advisors LLC bought a new stake in shares of Palomar in the 1st quarter valued at $46,000. Finally, Hollencrest Capital Management increased its stake in shares of Palomar by 56.5% in the 2nd quarter. Hollencrest Capital Management now owns 313 shares of the company's stock valued at $48,000 after acquiring an additional 113 shares in the last quarter. Institutional investors own 90.25% of the company's stock.

About Palomar

Palomar Holdings, Inc, a specialty insurance company, provides property and casualty insurance to residential and businesses in the United States. The company offers personal and commercial specialty property insurance products, including residential and commercial earthquake, fronting, commercial all risk, specialty homeowners, inland marine, Hawaii hurricane, and residential flood, as well as other products, such as assumed reinsurance.

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