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

Shares of Palomar Holdings, Inc. (NASDAQ:PLMR) have recently reached a new 52-week high during trading, hitting $112.11 at one point, and closing at $111.90 with over 45,000 shares exchanged. This marks a notable rise from last Friday's close of $109.67.

Analyst Perspectives

Recent analyst reports have been favorable for PLMR. Jefferies Financial Group has increased its target price for Palomar from $110.00 to $113.00, maintaining a "buy" rating. Similarly, Keefe, Bruyette & Woods adjusted their target price from $120.00 to $136.00, also labeling the stock as "outperform." Piper Sandler set their target at $110.00, giving an "overweight" rating, and JPMorgan Chase & Co raised their target from $93.00 to $100.00, landing on a "neutral" stance. In total, three analysts have given the stock a hold rating, while four have classified it as a buy, resulting in a consensus rating of "Moderate Buy" along with an average price target of $111.67 from MarketBeat.com.

Recent Performance

The company has seen a notable increase in share price, climbing 2.3% recently, with its 50-day simple moving average at $100.92 and the 200-day average at $93.87. Palomar holds a market capitalization of approximately $2.97 billion, alongside a PE ratio of 26.05 and a beta value of 0.36. The latest quarterly earnings report for Palomar was disclosed on November 4, where they reported earnings per share at $1.23, exceeding the analysts' expectations of $1.03 by $0.20. Revenue stood at $148.50 million, surpassing previous estimates, which were around $134.72 million. The company also noted a net margin of 21.55% and a return on equity of 19.65%. Previous yearly results indicated a growth in earnings per share from $0.80 to $1.23.

Insider Transactions

In recent insider trading news, CEO Mac Armstrong sold 7,000 shares of stock on September 23, at an average price of $95.49, totaling around $668,430. After this transaction, Armstrong retained ownership of 440,388 shares, valued at about $42 million, marking a 1.56% decrease in holdings. The Chief Financial Officer, T Christopher Uchida, also sold 1,030 shares on October 15 for an average price of $97.65. This comes to a total of $100,579.50, leaving Uchida with 17,543 shares valued at approximately $1.71 million, a 5.55% decline in his positions. In total, insiders traded 27,326 shares worth over $2.6 million in the last three months, while corporate insiders own around 4.30% of the company’s stock.

Institutional Investor Activities

Palomar has attracted substantial interest from institutional investors lately. Victory Capital Management Inc. increased its stake in Palomar by a staggering 1,634.6% during the second quarter, amassing 177,678 shares valued at about $14.4 million after acquiring an additional 167,435 shares. Additionally, F M Investments LLC entered a new position valued at approximately $11.9 million, while Point72 Asset Management L.P. purchased shares worth about $10.9 million. Allspring Global Investments Holdings LLC raised their stake by 214.5%, owning 165,685 shares worth $13.4 million after acquiring another 112,996 shares. Soros Fund Management LLC also entered the scene, buying stakes worth around $9.5 million. Overall, around 90.25% of Palomar's stock is held by institutional investors.

About Palomar Holdings, Inc.

Palomar Holdings, Inc. is a specialty insurance company providing a range of property and casualty insurance for residential and commercial clients across the United States. The company features personal and commercial specialty property insurance, earthquake coverage, fronting, commercial all-risk insurance, specialty homeowner's policies, and more, including certain reinsurance products.

Conclusion

As Palomar hits new highs, investors now question whether it is the right time to buy. While analysts continue to express optimism, it's crucial that potential buyers evaluate their decisions carefully. Trading stocks can be a high-risk venture, and getting advice from financial experts or conducting thorough research is always beneficial.

Palomar, Stocks, Earnings