Zacks Research Has Pessimistic View of Palomar Q1 Earnings

Key Points

• Zacks Research turned more cautious on Palomar’s Q1 2027 outlook, cutting its EPS estimate to $2.18 from $2.28 and keeping a Hold rating on the stock.
• Palomar’s latest quarter beat EPS expectations, reporting $2.31 per share versus $2.17 expected, while revenue rose 59.7% year over year to $278.94 million.
• Analyst sentiment remains mixed but generally positive, with a consensus rating of Moderate Buy and an average price target of $147.75, even as several firms have recently trimmed their targets.

Palomar Holdings, Inc. (NASDAQ:PLMR - Free Report) - Analysts at Zacks Research dropped their Q1 2027 earnings per share (EPS) estimates for shares of Palomar in a research note issued to investors on Friday, July 3rd. Zacks Research analyst Team now forecasts that the company will post earnings per share of $2.18 for the quarter, down from their previous forecast of $2.28. Zacks Research currently has a "Hold" rating on the stock. The consensus estimate for Palomar's current full-year earnings is $8.93 per share. Zacks Research also issued estimates for Palomar's Q4 2027 earnings at $2.71 EPS, FY2027 earnings at $9.66 EPS, Q1 2028 earnings at $3.12 EPS and Q2 2028 earnings at $2.26 EPS.

Several other brokerages also recently commented on PLMR. Weiss Ratings raised Palomar from a "hold (c)" rating to a "hold (c+)" rating in a report on Thursday, June 18th. JPMorgan Chase & Co. dropped their price target on Palomar from $160.00 to $150.00 and set an "overweight" rating for the company in a report on Tuesday, May 26th. Piper Sandler cut their price objective on Palomar from $151.00 to $132.00 and set an "overweight" rating for the company in a research report on Monday, May 11th. Finally, Keefe, Bruyette & Woods reduced their price objective on Palomar from $186.00 to $159.00 and set an "outperform" rating on the stock in a research note on Wednesday, May 13th. Four equities research analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the company's stock. Based on data from MarketBeat.com, the company has a consensus rating of "Moderate Buy" and a consensus target price of $147.75.

Palomar Price Performance

NASDAQ:PLMR opened at $145.29 on Wednesday. The firm has a market cap of $3.85 billion, a PE ratio of 20.24 and a beta of 0.41. Palomar has a 12 month low of $100.81 and a 12 month high of $147.44. The company has a quick ratio of 0.49, a current ratio of 0.49 and a debt-to-equity ratio of 0.31. The company's 50-day moving average price is $116.29 and its two-hundred day moving average price is $123.05.

Palomar (NASDAQ:PLMR - Get Free Report) last issued its earnings results on Wednesday, May 6th. The company reported $2.31 EPS for the quarter, beating the consensus estimate of $2.17 by $0.14. The company had revenue of $278.94 million for the quarter, compared to the consensus estimate of $557.79 million. Palomar had a net margin of 20.11% and a return on equity of 22.62%. The firm's revenue for the quarter was up 59.7% compared to the same quarter last year. During the same quarter in the previous year, the company earned $1.87 EPS.

Institutional Inflows and Outflows

Several hedge funds have recently modified their holdings of the business. Geneos Wealth Management Inc. acquired a new position in Palomar in the fourth quarter valued at approximately $32,000. Kestra Advisory Services LLC bought a new stake in shares of Palomar during the 4th quarter valued at $33,000. Rockefeller Capital Management L.P. lifted its stake in shares of Palomar by 81.5% in the 4th quarter. Rockefeller Capital Management L.P. now owns 294 shares of the company's stock valued at $40,000 after purchasing an additional 132 shares during the period. Parallel Advisors LLC boosted its position in shares of Palomar by 638.3% in the 1st quarter. Parallel Advisors LLC now owns 443 shares of the company's stock worth $53,000 after purchasing an additional 383 shares during the last quarter. Finally, Frazier Financial Advisors LLC acquired a new stake in shares of Palomar during the fourth quarter worth $54,000. Institutional investors own 90.25% of the company's stock.

Insiders Place Their Bets

In other Palomar news, insider Timothy Carter sold 480 shares of the stock in a transaction on Sunday, June 28th. The stock was sold at an average price of $124.29, for a total value of $59,659.20. Following the transaction, the insider directly owned 1,670 shares in the company, valued at approximately $207,564.30. This trade represents a 22.33% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, President Jon Christianson sold 6,863 shares of the business's stock in a transaction on Thursday, July 2nd. The stock was sold at an average price of $139.50, for a total value of $957,388.50. Following the sale, the president owned 66,478 shares of the company's stock, valued at approximately $9,273,681. The trade was a 9.36% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last quarter, insiders have sold 22,977 shares of company stock valued at $2,933,488. 3.70% of the stock is currently owned by corporate insiders.

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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