Palomar (NASDAQ:PLMR) Shares Up 5.5% - Still a Buy?

Key Points

• Palomar shares rose 5.5% to about $130.80, while analysts maintained a “Moderate Buy” consensus and an average price target of $162.75.
• The company reported quarterly EPS of $2.36, beating estimates of $2.19, with an 18.61% net margin and 23.28% return on equity; analysts expect full-year EPS of $9.06.
• Palomar declared a quarterly dividend of $0.45, representing a 1.4% yield, while insiders have sold roughly $2.9 million in shares over the past three months.

Palomar Holdings, Inc. (NASDAQ:PLMR - Get Free Report) rose 5.5% during mid-day trading on Tuesday . The stock traded as high as $129.29 and last traded at $130.7950. 46,513 shares traded hands during mid-day trading, a decline of 83% from the average daily volume of 269,703 shares. The stock had previously closed at $123.92.

Wall Street Analyst Weigh In

A number of research analysts have recently commented on PLMR shares. Evercore set a $152.00 target price on Palomar in a research note on Friday, July 10th. Weiss Ratings raised shares of Palomar from a "hold (c)" rating to a "hold (c+)" rating in a research note on Thursday, June 18th. JPMorgan Chase & Co. upped their price target on shares of Palomar from $150.00 to $167.00 and gave the stock an "overweight" rating in a report on Monday, July 20th. Zacks Research downgraded shares of Palomar from a "strong-buy" rating to a "hold" rating in a research note on Friday, May 15th. Finally, Piper Sandler lifted their price objective on shares of Palomar from $132.00 to $165.00 and gave the company an "overweight" rating in a report on Wednesday, July 15th. Four equities research 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 currently has a consensus rating of "Moderate Buy" and a consensus price target of $162.75.

Palomar Trading Up 5.3%

The company has a debt-to-equity ratio of 0.30, a quick ratio of 0.50 and a current ratio of 0.50. The company's fifty day simple moving average is $129.49 and its 200-day simple moving average is $123.74. The company has a market capitalization of $3.43 billion, a P/E ratio of 17.53 and a beta of 0.40.

Palomar (NASDAQ:PLMR - Get Free Report) last posted its earnings results on Tuesday, August 4th. The company reported $2.36 EPS for the quarter, beating analysts' consensus estimates of $2.19 by $0.17. Palomar had a net margin of 18.61% and a return on equity of 23.28%. The business had revenue of $314.42 million for the quarter, compared to the consensus estimate of $621.52 million. During the same quarter last year, the firm posted $1.76 EPS. Research analysts predict that Palomar Holdings, Inc. will post 9.06 earnings per share for the current year.

Palomar Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Wednesday, September 2nd. Investors of record on Wednesday, August 19th will be paid a $0.45 dividend. The ex-dividend date of this dividend is Wednesday, August 19th. This represents a $1.80 dividend on an annualized basis and a yield of 1.4%. Palomar's payout ratio is 24.19%.

Insider Buying and Selling

In other Palomar news, President Jon Christianson sold 3,000 shares of the stock in a transaction on Monday, July 20th. The stock was sold at an average price of $139.50, for a total transaction of $418,500.00. Following the sale, the president owned 66,478 shares of the company's stock, valued at approximately $9,273,681. This trade represents a 4.32% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Timothy Carter sold 480 shares of Palomar stock in a transaction on Sunday, June 28th. The shares were sold at an average price of $124.29, for a total value of $59,659.20. Following the completion of the transaction, the insider owned 1,670 shares in the company, valued at $207,564.30. This represents a 22.33% 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 have sold 22,050 shares of company stock worth $2,875,050 in the last three months. Corporate insiders own 3.70% of the company's stock.

Hedge Funds Weigh In On Palomar

Several institutional investors and hedge funds have recently added to or reduced their stakes in PLMR. Janus Henderson Group PLC raised its stake in shares of Palomar by 17.4% during the 1st quarter. Janus Henderson Group PLC now owns 933,993 shares of the company's stock worth $111,664,000 after acquiring an additional 138,368 shares in the last quarter. HighTower Advisors LLC boosted its stake in Palomar by 652.7% in the fourth quarter. HighTower Advisors LLC now owns 17,613 shares of the company's stock valued at $2,374,000 after acquiring an additional 15,273 shares in the last quarter. Moran Wealth Management LLC purchased a new position in Palomar in the fourth quarter worth $2,473,000. Stephens Investment Management Group LLC increased its position in shares of Palomar by 19.8% during the fourth quarter. Stephens Investment Management Group LLC now owns 694,317 shares of the company's stock worth $93,566,000 after purchasing an additional 114,859 shares in the last quarter. Finally, Vanguard Group Inc. increased its position in shares of Palomar by 2.5% during the fourth quarter. Vanguard Group Inc. now owns 2,698,278 shares of the company's stock worth $363,620,000 after purchasing an additional 67,038 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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