Palomar Holdings Reaches New 12-Month High - Is It a Good Time to Buy?

Shares of Palomar Holdings, Inc. (NASDAQ:PLMR) recently hit a new high for the year during trading on Monday, reaching as much as $112.11 before settling at $111.90, with a total volume of 45,842 shares trading hands. The previous close was $109.67.

Recent Analyst Ratings

Wall Street analysts have taken note of Palomar's performance and have provided insights on its stock. Jefferies Financial Group increased its target price from $110.00 to $113.00 and rated the stock as a ‘buy’ in a report dated October 9th. Keefe, Bruyette & Woods adjusted their price target from $120.00 to $136.00, giving an ‘outperform’ rating in their analysis released on December 6th. Additionally, Piper Sandler raised their target from $105.00 to $110.00, and assigned an ‘overweight’ rating on November 8th. Meanwhile, JPMorgan Chase & Co. increased its target from $93.00 to $100.00, maintaining a ‘neutral’ stance in their report published on November 7th. In total, three analysts suggest holding the stock, while four recommend buying it. According to MarketBeat.com, Palomar holds a consensus rating of ‘Moderate Buy’ with a target price of approximately $111.67.

Stock Performance

Palomar’s stock has shown an upward trend, recently increasing by 2.3%. The company's 50-day simple moving average stands at $100.92, and the 200-day simple moving average is at $93.87. With a market cap of around $2.97 billion, the stock features a price-to-earnings ratio of 26.05 and a beta of 0.36.

Recent Earnings Report

On November 4th, Palomar released its quarterly earnings report, revealing earnings of $1.23 per share, surpassing analysts' expectations of $1.03 by $0.20. The company's revenue for the quarter was $148.50 million, exceeding the consensus estimate of $134.72 million. Palomar's net margin is at 21.55%, with a return on equity of 19.65%. When compared to the same quarter the previous year, the earnings per share were $0.80. Analysts predict an earnings per share figure of 4.33 for the current fiscal year.

Insider Activities

In other news, Mac Armstrong, the CEO of Palomar, sold 7,000 shares on September 23rd at an average price of $95.49, totaling approximately $668,430. Following this sale, he retains ownership of 440,388 shares valued at about $42,052,650.12, marking a decline of 1.56% in his holdings. Furthermore, CFO T Christopher Uchida sold 1,030 shares at an average price of $97.65 on October 15th, valued at around $100,579.50, which represents a 5.55% decrease in his share count. Over the last three months, insiders have sold 27,326 shares, amounting to a value of $2,688,779, with corporate insiders controlling 4.30% of the company's stock.

Institutional Investor Activity

Several institutional investors have made changes to their stakes in Palomar recently. Victory Capital Management Inc. significantly increased its stake by 1,634.6% in the second quarter, now holding 177,678 shares valued at $14,419,000 after adding 167,435 shares. F M Investments LLC also entered a new position in the second quarter worth around $11,946,000. Point72 Asset Management L.P. acquired a new stake valued at about $10,994,000 in the third quarter. Allspring Global Investments Holdings LLC raised its position in Palomar by 214.5% during the second quarter and now owns 165,685 shares worth $13,445,000 after purchasing an additional 112,996 shares. Additionally, Soros Fund Management LLC invested in Palomar in the third quarter with a stake valued at approximately $9,467,000. Currently, institutional investors own 90.25% of Palomar's stock.

About Palomar Holdings

Palomar Holdings, Inc. is a specialty insurance provider that offers a range of property and casualty insurance products to residential and business clients across the United States. Their portfolio includes personal and commercial specialty property insurance products, such as earthquake insurance, homeowners insurance, and flood insurance, alongside other offerings like assumed reinsurance.

Conclusion

As Palomar reaches new peaks in its stock performance, investors may be considering whether it is time to buy. With positive analyst ratings and strong quarterly earnings, many are optimistic about the company's future. However, potential investors should weigh the latest market trends and insider activities before making decisions.

Palomar, Earnings, Investors