Zacks Research Issues Negative Forecast for Palomar Earnings

Key Points

• Zacks Research lowered its FY2028 EPS forecast for Palomar to $10.45 from $10.62, while maintaining a “Hold” rating. The estimate remains above the broader full-year consensus of $8.90 per share.
• Despite Zacks’ cautious outlook, other analysts have generally become more bullish, lifting price targets as high as $167. MarketBeat reports a “Moderate Buy” consensus rating and an average target price of $162.50.
• Palomar’s latest quarterly results exceeded expectations, with EPS of $2.31 versus a $2.17 consensus and revenue growth of 59.7% year over year. Institutional investors own 90.25% of the stock, while insiders have sold shares valued at approximately $2.7 million over the past 90 days.

Palomar Holdings, Inc. (NASDAQ:PLMR - Free Report) - Analysts at Zacks Research cut their FY2028 earnings per share (EPS) estimates for shares of Palomar in a research note issued on Monday, August 3rd. Zacks Research analyst Team now expects that the company will post earnings of $10.45 per share for the year, down from their prior forecast of $10.62. Zacks Research has a "Hold" rating on the stock. The consensus estimate for Palomar's current full-year earnings is $8.90 per share.

A number of other research analysts have also issued reports on the company. Evercore set a $152.00 target price on Palomar in a report on Friday, July 10th. Piper Sandler raised their price target on Palomar from $132.00 to $165.00 and gave the company an "overweight" rating in a research report on Wednesday, July 15th. Keefe, Bruyette & Woods lifted their price objective on Palomar from $162.00 to $166.00 and gave the stock an "outperform" rating in a research report on Wednesday, July 8th. JPMorgan Chase & Co. upped their target price on Palomar from $150.00 to $167.00 and gave the company an "overweight" rating in a research note on Monday, July 20th. Finally, Weiss Ratings upgraded Palomar from a "hold (c)" rating to a "hold (c+)" rating in a report on Thursday, June 18th. Four analysts have rated the stock with a Buy rating and two have given a Hold rating to the stock. According to MarketBeat, the company presently has a consensus rating of "Moderate Buy" and an average price target of $162.50.

Palomar Price Performance

Shares of PLMR opened at $136.51 on Tuesday. The company has a debt-to-equity ratio of 0.31, a quick ratio of 0.49 and a current ratio of 0.49. Palomar has a fifty-two week low of $100.81 and a fifty-two week high of $147.62. The firm has a 50-day simple moving average of $124.76 and a 200-day simple moving average of $123.54. The company has a market capitalization of $3.62 billion, a price-to-earnings ratio of 19.01 and a beta of 0.40.

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

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently made changes to their positions in the stock. Geneos Wealth Management Inc. bought a new stake in Palomar in the fourth quarter worth about $32,000. Kestra Advisory Services LLC bought a new stake in shares of Palomar in the 4th quarter worth approximately $33,000. Rockefeller Capital Management L.P. raised its holdings 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 worth $40,000 after purchasing an additional 132 shares in the last quarter. Frazier Financial Advisors LLC acquired a new stake in Palomar during the fourth quarter valued at approximately $54,000. Finally, Parallel Advisors LLC lifted its stake in Palomar by 638.3% during the first quarter. Parallel Advisors LLC now owns 443 shares of the company's stock valued at $53,000 after purchasing an additional 383 shares during the last quarter. 90.25% of the stock is currently owned by institutional investors.

Insider Transactions at Palomar

In other Palomar news, insider Timothy Carter sold 480 shares of the company's stock in a transaction that occurred 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 of the company's stock, valued at $207,564.30. This represents a 22.33% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CEO Mac Armstrong sold 3,500 shares of the business's stock in a transaction dated Tuesday, July 21st. The shares were sold at an average price of $137.26, for a total value of $480,410.00. Following the completion of the sale, the chief executive officer directly owned 325,888 shares of the company's stock, valued at approximately $44,731,386.88. This represents a 1.06% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 20,843 shares of company stock valued at $2,711,683 over the last 90 days. Corporate insiders own 3.70% of the company's stock.

About Palomar

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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