Zacks Research Issues Positive Forecast for Palomar Earnings

Key Points

• Zacks Research raised its FY2027 EPS estimate for Palomar to $10.39 (from $10.26) and rates the stock a Strong-Buy, versus a consensus current full‑year EPS of $5.99.
• Palomar's most recent quarter (reported Feb. 11) beat expectations with $2.24 EPS (vs. $2.06) and revenue of $253.36M (vs. $204.58M), driving a 62.7% YoY revenue increase and strong margins (net margin 22.5%, ROE 22.8%).
• Analyst sentiment is mixed but averages a Buy rating with a consensus target of $161.75, while insiders have sold about 66,632 shares (~$8.18M) in the past 90 days and institutions own roughly 90% of the stock.

Palomar Holdings, Inc. (NASDAQ:PLMR - Free Report) - Stock analysts at Zacks Research lifted their FY2027 earnings per share estimates for shares of Palomar in a research note issued on Friday, April 17th. Zacks Research analyst Team now forecasts that the company will earn $10.39 per share for the year, up from their prior estimate of $10.26. Zacks Research has a "Strong-Buy" rating on the stock. The consensus estimate for Palomar's current full-year earnings is $5.99 per share. Zacks Research also issued estimates for Palomar's Q4 2027 earnings at $2.28 EPS and FY2028 earnings at $11.31 EPS.

Palomar (NASDAQ:PLMR - Get Free Report) last released its quarterly earnings data on Wednesday, February 11th. The company reported $2.24 EPS for the quarter, beating the consensus estimate of $2.06 by $0.18. The firm had revenue of $253.36 million for the quarter, compared to the consensus estimate of $204.58 million. Palomar had a net margin of 22.50% and a return on equity of 22.77%. The company's quarterly revenue was up 62.7% on a year-over-year basis. During the same period in the previous year, the company earned $1.52 earnings per share.

Several other equities analysts also recently commented on PLMR. Weiss Ratings downgraded Palomar from a "buy (b-)" rating to a "hold (c+)" rating in a research report on Tuesday, April 7th. Evercore began coverage on Palomar in a report on Monday, February 9th. They set an "outperform" rating and a $150.00 price target for the company. JPMorgan Chase & Co. upped their price objective on Palomar from $155.00 to $160.00 and gave the company an "overweight" rating in a report on Monday, February 23rd. Keefe, Bruyette & Woods increased their price objective on Palomar from $183.00 to $186.00 and gave the stock an "outperform" rating in a research report on Tuesday, April 7th. Finally, Wall Street Zen downgraded Palomar from a "buy" rating to a "hold" rating in a report on Sunday, March 1st. One analyst has rated the stock with a Strong Buy rating, four have given a Buy rating and one has given a Hold rating to the company's stock. According to data from MarketBeat, the stock currently has an average rating of "Buy" and a consensus target price of $161.75.

Palomar Price Performance

Palomar stock opened at $132.55 on Monday. Palomar has a twelve month low of $107.75 and a twelve month high of $175.85. The stock has a market cap of $3.51 billion, a P/E ratio of 18.46 and a beta of 0.54. The company's 50-day moving average price is $124.08 and its two-hundred day moving average price is $124.07.

Insider Buying and Selling at Palomar

In other news, President Jon Christianson sold 3,000 shares of the stock in a transaction on Tuesday, April 7th. The stock was sold at an average price of $125.00, for a total transaction of $375,000.00. Following the sale, the president directly owned 62,919 shares of the company's stock, valued at approximately $7,864,875. This represents a 4.55% decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Mac Armstrong sold 11,484 shares of the business's stock in a transaction dated Wednesday, January 28th. The shares were sold at an average price of $119.88, for a total value of $1,376,701.92. Following the completion of the transaction, the chief executive officer directly owned 91,737 shares of the company's stock, valued at approximately $10,997,431.56. This trade represents a 11.13% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold a total of 66,632 shares of company stock valued at $8,177,085 over the last ninety days. Insiders own 3.70% of the company's stock.

Institutional Investors Weigh In On Palomar

Several institutional investors and hedge funds have recently added to or reduced their stakes in the business. Diversified Trust Co raised its holdings in shares of Palomar by 15.0% during the 1st quarter. Diversified Trust Co now owns 8,887 shares of the company's stock worth $1,062,000 after buying an additional 1,156 shares in the last quarter. Rockefeller Capital Management L.P. lifted its holdings in shares of Palomar by 81.5% in the fourth quarter. Rockefeller Capital Management L.P. now owns 294 shares of the company's stock worth $40,000 after acquiring an additional 132 shares during the last quarter. Mercer Global Advisors Inc. ADV acquired a new stake in shares of Palomar in the 4th quarter valued at approximately $215,000. Summit Global Investments increased its position in Palomar by 1.7% during the 4th quarter. Summit Global Investments now owns 4,646 shares of the company's stock worth $626,000 after purchasing an additional 79 shares in the last quarter. Finally, Caitlin John LLC lifted its stake in Palomar by 23,887.5% in the 4th quarter. Caitlin John LLC now owns 1,919 shares of the company's stock valued at $259,000 after purchasing an additional 1,911 shares during the last quarter. 90.25% of the stock is currently owned by institutional investors.

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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