Short Interest in Palomar Holdings, Inc. (NASDAQ:PLMR) Declines By 37.2%

Key Points

• Short Interest Decline: Palomar Holdings, Inc. experienced a significant 37.2% decline in short interest, dropping from 616,800 shares to 387,100 shares as of July 31st.
• Earnings Performance: The company reported earnings per share of $1.76 for the quarter, surpassing analysts' expectations of $1.68, and achieving a revenue of $496.29 million, which marked a 47.6% increase compared to the previous year.
• Insider Activity: Director Richard H. Taketa purchased 500 shares at an average price of $121.14, increasing his ownership stake, while CEO Mac Armstrong sold 5,000 shares at an average price of $140.10.

Palomar Holdings, Inc. (NASDAQ:PLMR - Get Free Report) saw a significant decline in short interest during the month of July. As of July 31st, there was short interest totaling 387,100 shares, adeclineof37.2% from the July 15th total of 616,800 shares. Based on an average daily volume of 348,700 shares, the short-interest ratio is currently 1.1 days. Currently,1.5% of the shares of the stock are short sold. Currently,1.5% of the shares of the stock are short sold. Based on an average daily volume of 348,700 shares, the short-interest ratio is currently 1.1 days.

Palomar Price Performance

Palomar stock traded up $0.33 during mid-day trading on Tuesday, reaching $120.86. 163,348 shares of the company traded hands, compared to its average volume of 463,173. The company has a market capitalization of $3.24 billion, a price-to-earnings ratio of 21.24 and a beta of 0.44. Palomar has a fifty-two week low of $85.00 and a fifty-two week high of $175.85. The firm's fifty day moving average is $139.67 and its two-hundred day moving average is $140.52.

Palomar (NASDAQ:PLMR - Get Free Report) last released its quarterly earnings data on Monday, August 4th. The company reported $1.76 earnings per share for the quarter, topping analysts' consensus estimates of $1.68 by $0.08. Palomar had a net margin of 22.71% and a return on equity of 20.35%. The firm had revenue of $496.29 million for the quarter, compared to analyst estimates of $173.86 million. During the same quarter in the prior year, the business earned $1.25 earnings per share. The business's quarterly revenue was up 47.6% compared to the same quarter last year. As a group, equities research analysts predict that Palomar will post 5.99 earnings per share for the current year.

Insider Buying and Selling

In other news, Director Richard H. Taketa purchased 500 shares of the company's stock in a transaction that occurred on Monday, August 18th. The stock was purchased at an average cost of $121.14 per share, with a total value of $60,570.00. Following the purchase, the director owned 44,226 shares in the company, valued at approximately $5,357,537.64. This trade represents a 1.14% increase in their ownership of the stock. The purchase was disclosed in a document filed with the Securities & Exchange Commission, which is available at this hyperlink. Also, CEO Mac Armstrong sold 5,000 shares of Palomar stock in a transaction dated Monday, July 21st. The stock was sold at an average price of $140.10, for a total transaction of $700,500.00. Following the transaction, the chief executive officer directly owned 382,388 shares of the company's stock, valued at approximately $53,572,558.80. This represents a 1.29% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold a total of 21,294 shares of company stock valued at $3,208,102 in the last three months. Corporate insiders own 3.70% of the company's stock.

Hedge Funds Weigh In On Palomar

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Hollencrest Capital Management lifted its holdings in Palomar by 56.5% during the second quarter. Hollencrest Capital Management now owns 313 shares of the company's stock valued at $48,000 after purchasing an additional 113 shares in the last quarter. Public Sector Pension Investment Board lifted its holdings in Palomar by 8.3% during the second quarter. Public Sector Pension Investment Board now owns 91,179 shares of the company's stock valued at $14,064,000 after purchasing an additional 7,010 shares in the last quarter. CANADA LIFE ASSURANCE Co lifted its holdings in Palomar by 1.9% during the second quarter. CANADA LIFE ASSURANCE Co now owns 26,901 shares of the company's stock valued at $4,147,000 after purchasing an additional 490 shares in the last quarter. Tower Research Capital LLC TRC lifted its holdings in Palomar by 247.7% during the second quarter. Tower Research Capital LLC TRC now owns 2,733 shares of the company's stock valued at $422,000 after purchasing an additional 1,947 shares in the last quarter. Finally, Florida Financial Advisors LLC lifted its holdings in Palomar by 62.7% during the second quarter. Florida Financial Advisors LLC now owns 3,369 shares of the company's stock valued at $520,000 after purchasing an additional 1,298 shares in the last quarter. 90.25% of the stock is owned by hedge funds and other institutional investors.

Analyst Ratings Changes

PLMR has been the subject of several research reports. Wall Street Zen cut shares of Palomar from a "buy" rating to a "hold" rating in a research report on Saturday, July 5th. Piper Sandler reduced their price objective on shares of Palomar from $177.00 to $151.00 and set an "overweight" rating for the company in a research note on Wednesday, August 6th. Evercore ISI increased their target price on shares of Palomar from $163.00 to $168.00 and gave the company an "in-line" rating in a research report on Friday, May 30th. Keefe, Bruyette & Woods decreased their target price on shares of Palomar from $204.00 to $172.00 and set an "outperform" rating for the company in a research report on Friday, August 8th. Finally, JPMorgan Chase & Co. decreased their target price on shares of Palomar from $170.00 to $158.00 and set an "overweight" rating for the company in a research report on Monday, August 11th. Five equities research analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the stock. According to MarketBeat.com, the stock has an average rating of "Moderate Buy" and a consensus target price of $165.83.

Palomar Company Profile

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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