Zacks Research Has Negative Forecast for Palomar Q3 Earnings

Key Points

• Zacks Research cut its Q3 2026 EPS estimate for Palomar to $2.42 from $2.63 and kept a Hold rating on the stock.
• Palomar’s last quarterly results beat EPS expectations, reporting $2.31 per share versus the $2.17 consensus, while revenue rose 59.7% year over year to $278.94 million.
• Despite mixed analyst target cuts, Palomar still has a Moderate Buy consensus with an average price target of $147.75; the stock recently traded at $126.33.

Palomar Holdings, Inc. (NASDAQ:PLMR - Free Report) - Equities research analysts at Zacks Research lowered their Q3 2026 earnings estimates for shares of Palomar in a report released on Monday, June 29th. Zacks Research analyst Team now anticipates that the company will post earnings per share of $2.42 for the quarter, down from their prior estimate of $2.63. Zacks Research currently has a "Hold" rating on the stock. The consensus estimate for Palomar's current full-year earnings is $8.96 per share. Zacks Research also issued estimates for Palomar's FY2026 earnings at $8.59 EPS and Q1 2028 earnings at $3.18 EPS.

Palomar (NASDAQ:PLMR - Get Free Report) last released its quarterly earnings data on Wednesday, May 6th. The company reported $2.31 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $2.17 by $0.14. The business had revenue of $278.94 million during the quarter, compared to analysts' expectations of $557.79 million. Palomar had a net margin of 20.11% and a return on equity of 22.62%. The firm's quarterly revenue was up 59.7% compared to the same quarter last year. During the same period in the prior year, the company earned $1.87 EPS.

PLMR has been the subject of a number of other reports. Keefe, Bruyette & Woods dropped their price target on Palomar from $186.00 to $159.00 and set an "outperform" rating for the company in a research note on Wednesday, May 13th. Weiss Ratings upgraded Palomar from a "hold (c)" rating to a "hold (c+)" rating in a research report on Thursday, June 18th. JPMorgan Chase & Co. lowered their target price on Palomar from $160.00 to $150.00 and set an "overweight" rating for the company in a report on Tuesday, May 26th. Finally, Piper Sandler dropped their target price on Palomar from $151.00 to $132.00 and set an "overweight" rating for the company in a research report on Monday, May 11th. Four research analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the stock. According to data from MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and an average price target of $147.75.

Palomar Stock Performance

NASDAQ PLMR opened at $126.33 on Tuesday. The firm's fifty day moving average price is $115.35 and its two-hundred day moving average price is $122.51. The stock has a market cap of $3.35 billion, a PE ratio of 17.59 and a beta of 0.44. Palomar has a fifty-two week low of $100.81 and a fifty-two week high of $156.55. The company has a debt-to-equity ratio of 0.31, a quick ratio of 0.49 and a current ratio of 0.49.

Institutional Investors Weigh In On Palomar

Several institutional investors and hedge funds have recently made changes to their positions in the stock. Vanguard Group Inc. raised 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 acquiring an additional 67,038 shares during the last quarter. Janus Henderson Group PLC boosted its holdings in Palomar by 17.4% in the first quarter. Janus Henderson Group PLC now owns 933,993 shares of the company's stock valued at $111,664,000 after acquiring an additional 138,368 shares during the last quarter. Westfield Capital Management Co. LP increased its position in Palomar by 13.8% during the 4th quarter. Westfield Capital Management Co. LP now owns 840,226 shares of the company's stock valued at $113,229,000 after purchasing an additional 101,698 shares during the period. Sumitomo Mitsui Trust Group Inc. increased its position in Palomar by 72.1% during the 4th quarter. Sumitomo Mitsui Trust Group Inc. now owns 785,165 shares of the company's stock valued at $105,809,000 after purchasing an additional 328,993 shares during the period. Finally, Stephens Investment Management Group LLC raised its holdings in Palomar by 3.0% during the 1st quarter. Stephens Investment Management Group LLC now owns 714,914 shares of the company's stock worth $85,432,000 after purchasing an additional 20,597 shares during the last quarter. Institutional investors and hedge funds own 90.25% of the company's stock.

Insider Buying and Selling at Palomar

In other news, CEO Mac Armstrong sold 3,500 shares of Palomar stock in a transaction on Monday, June 22nd. The shares were sold at an average price of $112.96, for a total transaction of $395,360.00. Following the transaction, the chief executive officer owned 329,388 shares in the company, valued at approximately $37,207,668.48. The trade was a 1.05% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, President Jon Christianson sold 3,000 shares of the stock in a transaction on Tuesday, April 7th. The shares were sold at an average price of $125.00, for a total value of $375,000.00. Following the completion of the sale, the president owned 62,919 shares of the company's stock, valued at $7,864,875. The trade was a 4.55% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 18,634 shares of company stock valued at $2,291,441 in the last ninety days. Insiders own 3.70% 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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