Palomar (NASDAQ:PLMR) Releases Earnings Results

Palomar (NASDAQ:PLMR) posted its quarterly earnings results on Tuesday. The company reported $2.36 earnings per share for the quarter, topping the consensus estimate of $2.19 by $0.17, FiscalAI reports. The firm had revenue of $314.42 million during the quarter, compared to analysts’ expectations of $621.52 million. Palomar had a return on equity of 23.62% and a net margin of 18.61%.During the same quarter in the previous year, the business earned $1.76 earnings per share.

Palomar Stock Performance

NASDAQ PLMR traded up $0.85 on Thursday, reaching $134.85. 134,827 shares of the stock were exchanged, compared to its average volume of 270,865. The company has a current ratio of 0.49, a quick ratio of 0.49 and a debt-to-equity ratio of 0.31. Palomar has a one year low of $100.81 and a one year high of $147.62. The firm has a market capitalization of $3.57 billion, a PE ratio of 18.09 and a beta of 0.40. The company’s 50-day simple moving average is $125.68 and its two-hundred day simple moving average is $123.60.

Palomar Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Wednesday, September 2nd. Shareholders of record on Wednesday, August 19th will be paid a dividend of $0.45 per share. The ex-dividend date is Wednesday, August 19th. This represents a $1.80 dividend on an annualized basis and a yield of 1.3%.

Analysts Set New Price Targets

PLMR has been the topic of a number of recent analyst reports. Keefe, Bruyette & Woods raised their price target on shares of Palomar from $162.00 to $166.00 and gave the company an “outperform” rating in a report on Wednesday, July 8th. Zacks Research cut Palomar from a “strong-buy” rating to a “hold” rating in a report on Friday, May 15th. Evercore set a $152.00 price target on Palomar in a research note on Friday, July 10th. JPMorgan Chase & Co. upped their price objective on Palomar from $150.00 to $167.00 and gave the company an “overweight” rating in a research report on Monday, July 20th. Finally, Weiss Ratings raised Palomar from a “hold (c)” rating to a “hold (c+)” rating in a research report on Thursday, June 18th. Four analysts have rated the stock with a Buy rating and two have issued a Hold rating to the company. Based on data from MarketBeat, the company has a consensus rating of “Moderate Buy” and a consensus price target of $162.50.

Insider Activity

In other news, President Jon Christianson sold 6,863 shares of the stock in a transaction on Thursday, July 2nd. The shares were sold at an average price of $139.50, for a total value of $957,388.50. Following the completion of the sale, the president directly owned 66,478 shares of the company’s stock, valued at $9,273,681. This represents a 9.36% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, COO Rodolphe Herve sold 1,207 shares of the firm’s stock in a transaction on Friday, July 31st. The shares were sold at an average price of $135.35, for a total transaction of $163,367.45. Following the sale, the chief operating officer owned 3,548 shares in the company, valued at $480,221.80. The trade was a 25.38% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The sale was made to cover tax withholding obligations related to the vesting of equity awards. In the last three months, insiders have sold 22,050 shares of company stock valued at $2,875,050. Company insiders own 3.70% of the company’s stock.

Institutional Trading of Palomar

Institutional investors have recently made changes to their positions in the business. Kestra Advisory Services LLC purchased a new stake in Palomar during the 4th quarter valued at approximately $33,000. Advisory Services Network LLC purchased a new position in shares of Palomar in the third quarter worth $57,000. NewEdge Advisors LLC purchased a new position in shares of Palomar in the first quarter worth $66,000. iSAM Funds UK Ltd bought a new position in shares of Palomar during the third quarter worth $81,000. Finally, Smartleaf Asset Management LLC grew its stake in Palomar by 25.6% during the fourth quarter. Smartleaf Asset Management LLC now owns 672 shares of the company’s stock valued at $91,000 after acquiring an additional 137 shares in the last quarter. Hedge funds and other institutional investors own 90.25% of the company’s stock.

Key Headlines Impacting Palomar

Here are the key news stories impacting Palomar this week:

• Positive Sentiment: Q2 earnings beat expectations: Palomar reported adjusted earnings of $2.36 per share, above the $2.19 consensus estimate and up from $1.76 a year earlier. Higher premiums and investment income supported results. Palomar Q2 earnings report
• Positive Sentiment: Growth initiatives remain a catalyst: Recent coverage highlights Palomar’s efforts to diversify its specialty-insurance platform, expand its crop-insurance business and grow premiums. These initiatives could broaden revenue sources and support future earnings. PLMR Q2 business outlook
• Positive Sentiment: Dividend declared: Palomar announced a quarterly dividend of $0.45 per share, payable September 2 to shareholders of record August 19. The payout provides a modest shareholder-return component, with an annualized yield of approximately 1.3%.
• Neutral Sentiment: Forward estimates were mixed: Zacks Research raised its FY2027 EPS forecast slightly to $9.70 from $9.66 and increased its Q1 2027 estimate to $2.22 from $2.18. However, it lowered estimates for Q1 2028 to $3.08 and Q2 2028 to $2.12, while maintaining a “Hold” rating.
• Neutral Sentiment: Analysts remain broadly constructive, with previously reported price targets ranging from $165 to $167 and a consensus rating of “Moderate Buy.” Institutional investors own about 90% of Palomar’s shares.
• Negative Sentiment: Underwriting margins are under pressure: Higher losses and operating expenses offset part of the premium and investment-income gains. Investors may focus on whether Palomar can maintain profitable growth as it expands into additional insurance lines.
• Negative Sentiment: COO Rodolphe Herve sold 1,207 shares valued at approximately $163,000. The filing stated that the sale covered tax withholding related to vested equity awards, reducing—but not eliminating—the negative signal from the insider transaction.

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.