Palomar (NASDAQ:PLMR) Reaches New 12-Month High - Is It Time to Invest?

Palomar Holdings, Inc. (NASDAQ:PLMR) has recently hit a new 52-week high during trading on a Monday, reaching as high as $112.11 before closing at $111.90. This move came with a trading volume of 45,842 shares, significantly up from its previous closing price of $109.67.

What Analysts Are Saying

Palomar has captured the attention of various analysts in the financial sector. In a report dated October 9th, Jefferies Financial Group updated its target price on Palomar's shares from $110.00 to $113.00 and maintained a 'buy' rating. Following suit, Keefe, Bruyette & Woods raised their price target from $120.00 to $136.00, giving the stock an 'outperform' rating in early December. Piper Sandler also boosted its target price from $105.00 to $110.00 and classified the company as 'overweight' in a November note. Additionally, JPMorgan Chase & Co. adjusted their target from $93.00 to $100.00, assigning a 'neutral' rating. Overall, three analysts rate the stock as a hold while four suggest a buy. According to MarketBeat.com, Palomar has a consensus rating of 'Moderate Buy,' with an average price target of $111.67.

Stock Performance Overview

As of the latest trading session, Palomar's shares increased by 2.3%. The stock's 50-day moving average stands at $100.92, while the 200-day average is $93.87. Presently, Palomar boasts a market capitalization of $2.97 billion, a price-to-earnings (PE) ratio of 26.05, and a relatively low beta of 0.36.

Quarterly Earnings Report

Palomar recently announced its quarterly earnings on November 4th, where it reported earnings per share of $1.23, surpassing analysts' expectations of $1.03 by $0.20. The company's revenue for the quarter was $148.50 million, outperforming the consensus estimate of $134.72 million. Palomar achieved a net margin of 21.55% and a return on equity of 19.65%. Comparatively, the same quarter last year showed an earnings per share of $0.80. Analysts project an average earnings per share of 4.33 for the current fiscal year.

Insider Transactions

There have been recent insider sales at Palomar. CEO Mac Armstrong sold 7,000 shares back on September 23rd at an average price of $95.49, resulting in a total transaction worth approximately $668,430. Even after the sale, Armstrong holds around 440,388 shares in the company, valued at roughly $42.05 million, indicating a 1.56% decrease in his ownership. Similarly, CFO T Christopher Uchida sold 1,030 shares on October 15th for about $100,579.50, reducing his stake by 5.55%. Throughout the past three months, insiders have sold a total of 27,326 shares valued at around $2.69 million, and corporate insiders now hold about 4.30% of the company's total stock.

Institutional Investments in Palomar

Recent movements in institutional ownership have seen several large investors adjust their stakes in Palomar. Victory Capital Management Inc. significantly increased its holdings by 1,634.6% during the second quarter, now owning 177,678 shares worth approximately $14.42 million after acquiring an additional 167,435 shares. F M Investments LLC entered a new position valued at roughly $11.95 million during the same period. Point72 Asset Management also made a new investment around $10.99 million in the third quarter. Another notable increase came from Allspring Global Investments Holdings LLC, which grew its position by 214.5% to hold 165,685 shares valued at roughly $13.45 million after buying an additional 112,996 shares. Lastly, Soros Fund Management LLC initiated a stake valued at about $9.47 million. In total, institutional investors own an impressive 90.25% of Palomar’s shares.

About Palomar Holdings

Palomar Holdings, Inc. is a specialty insurance company that provides a diverse range of property and casualty insurance products for residential and commercial purposes across the United States. Their offerings include specialized insurance for earthquake, commercial all-risk, flood, and other unique needs.

Conclusion: Should You Invest?

With Palomar reaching new highs and reflecting favorable analyst ratings, potential investors might be considering whether now is an opportune time to buy. However, it's essential to weigh the advice of top analysts, as many recommend other stocks over Palomar at this moment. This underscores the importance of thorough research and analysis before making investment decisions.

Palomar, Stock, Investment