Palomar (NASDAQ:PLMR) Hits New 52-Week High After Better-Than-Expected Earnings

Palomar Holdings, Inc. (NASDAQ:PLMR)’s share price hit a new 52-week high on Thursday following a better than expected earnings announcement. The stock traded as high as $155.02 and last traded at $154.0130, with a volume of 22,765 shares changing hands. The stock had previously closed at $144.04.

The company reported $3.01 EPS for the quarter, beating the consensus estimate of $2.56 by $0.45. Palomar had a net margin of 18.61% and a return on equity of 23.28%. The business had revenue of $386.59 million for the quarter, compared to analysts’ expectations of $754.28 million. During the same period in the previous year, the company posted $2.01 EPS.

Palomar Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Wednesday, December 2nd. Investors of record on Tuesday, November 17th will be issued a dividend of $0.45 per share. This represents a $1.80 annualized dividend and a dividend yield of 1.1%. The ex-dividend date is Tuesday, November 17th. Palomar’s dividend payout ratio (DPR) is currently 24.19%.

Wall Street Analysts Forecast Growth

A number of research analysts have commented on PLMR shares. Zacks Research downgraded Palomar from a “strong-buy” rating to a “hold” rating in a research note on Thursday, October 29th. Weiss Ratings downgraded Palomar from a “buy (b+)” rating to a “buy (b)” rating in a research note on Friday, October 30th. JPMorgan Chase & Co. cut their price target on Palomar from $167.00 to $156.00 and set an “overweight” rating for the company in a research note on Friday, October 9th. Keefe, Bruyette & Woods lifted their price target on Palomar from $166.00 to $167.00 and gave the company an “outperform” rating in a report on Monday, August 10th. Finally, Piper Sandler boosted their price target on Palomar from $132.00 to $165.00 and gave the company an “overweight” rating in a research note on Wednesday, July 15th. Five research analysts have rated the stock with a Buy rating and one has given a Hold rating to the stock. Based on data from MarketBeat, the company presently has a consensus rating of “Moderate Buy” and an average price target of $160.00.

Insider Buying and Selling at Palomar

In related news, President Jon Christianson sold 528 shares of the company’s stock in a transaction on Tuesday, August 18th. The shares were sold at an average price of $127.75, for a total value of $67,452.00. Following the completion of the sale, the president directly owned 66,970 shares in the company, valued at approximately $8,555,417.50. This represents a 0.78% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through this link. 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 stock in a transaction on Wednesday, October 21st. The stock was sold at an average price of $138.31, for a total transaction of $484,085.00. Following the transaction, the chief executive officer directly owned 315,388 shares in the company, valued at $43,621,314.28. The trade was a 1.10% 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 a total of 12,115 shares of company stock worth $1,619,923 in the last 90 days. 3.70% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

A number of hedge funds have recently made changes to their positions in the stock. Allspring Global Investments Holdings LLC grew its holdings in Palomar by 4.9% in the 3rd quarter. Allspring Global Investments Holdings LLC now owns 3,410 shares of the company’s stock valued at $429,000 after buying an additional 160 shares during the last quarter. Commonwealth Equity Services LLC lifted its holdings in shares of Palomar by 1.1% during the third quarter. Commonwealth Equity Services LLC now owns 9,434 shares of the company’s stock worth $1,163,000 after buying an additional 100 shares during the last quarter. Vise Technologies Inc. lifted its holdings in shares of Palomar by 12.4% during the third quarter. Vise Technologies Inc. now owns 3,053 shares of the company’s stock worth $376,000 after buying an additional 337 shares during the last quarter. Moody Aldrich Partners LLC bought a new stake in shares of Palomar in the third quarter valued at approximately $6,596,000. Finally, Park Avenue Securities LLC boosted its position in shares of Palomar by 31.8% in the third quarter. Park Avenue Securities LLC now owns 3,897 shares of the company’s stock valued at $480,000 after acquiring an additional 940 shares during the period. Institutional investors and hedge funds own 90.25% of the company’s stock.

Palomar Stock Up 9.4%

The firm has a 50-day moving average price of $133.99 and a two-hundred day moving average price of $126.62. The company has a market capitalization of $4.15 billion, a P/E ratio of 21.19 and a beta of 0.28. The company has a quick ratio of 0.50, a current ratio of 0.50 and a debt-to-equity ratio of 0.30.

About Palomar

Palomar Holdings, Inc is a specialty insurance company that provides property and casualty insurance products in markets that may be underserved by traditional insurers. The company focuses on risks that are complex, difficult to place or exposed to natural catastrophes, using specialized underwriting and risk-management capabilities.

Its offerings include residential and commercial earthquake insurance, inland marine coverage, specialty property insurance, casualty products, workers’ compensation and other tailored insurance solutions.