Keefe, Bruyette & Woods Elevates Palomar Price Target to $136.00

Palomar Holdings, Inc. (NASDAQ: PLMR) received an upgrade to its price target from analysts at Keefe, Bruyette & Woods. In their latest report, they raised the price objective from $120.00 to $136.00, indicating a strong outlook for the company.

The report was issued on Friday and also classified the stock with an "outperform" rating. The new price target suggests that the stock could potentially rise by about 22.23% compared to its previous closing price.

Other Analysts' Perspectives

In addition to Keefe, Bruyette & Woods, several other brokerage firms have recently reviewed Palomar's stock. For instance, JPMorgan Chase & Co. increased their price target from $93.00 to $100.00, providing a "neutral" rating for the stock.

Piper Sandler also raised their target from $105.00 to $110.00, labeling it as "overweight." Similarly, Truist Financial set a new price objective of $112.00, marking a raise from their previous price target of $100.00 and advising a "buy" rating.

Moreover, Jefferies Financial Group adjusted their target from $110.00 to $113.00, maintaining a "buy" recommendation. Among these analysts, three have given Palomar a "hold" rating, while four have assigned a "buy" rating. According to MarketBeat.com, the stock currently holds an average rating of "Moderate Buy" with an average price target of $111.67.

Palomar's Market Performance

The stock was trading positively on Friday, gaining $2.85 and reaching $111.27 during mid-day trading. The trading volume at that time was around 19,638 shares, compared to an average volume of 162,055 shares. The company boasts a market capitalization of $2.95 billion and has a price-to-earnings (P/E) ratio of 26.43.

Over the past year, Palomar's share price has ranged from a low of $54.50 to a high of $112.10. Currently, the 50-day moving average stands at $99.47, while the 200-day moving average is $92.63.

Recent Financial Performance

Palomar published its quarterly earnings data on November 4th. The company reported earnings of $1.23 per share, which exceeds the consensus estimate of $1.03 by $0.20. Their return on equity was noted at 19.65%, with a net profit margin of 21.55%. Revenue for the quarter amounted to $148.50 million, significantly higher than the forecasted revenue of $134.72 million. This is an improvement compared to the same quarter of the previous year when it reported earnings of $0.80 per share. Analysts predict that Palomar will achieve earnings of 4.33 per share for the current fiscal year.

Insider Trading Activities

In other updates regarding the company, President Jon Christianson sold 3,805 shares on October 4th at an average price of $103.04, culminating in a total transaction value of approximately $392,067. Following this trade, he now owns 51,926 shares in Palomar, amounting to an estimated value of $5,350,455.04. This represented a 6.83% decrease in his holdings.

Additionally, CEO Mac Armstrong sold 7,000 shares on September 23rd, with an average sale price of $95.49, totaling around $668,430.00. After this sale, he holds 440,388 shares valued at approximately $42,052,650.12, reflecting a 1.56% decrease in his interests. Over the last three months, insiders have sold a total of 27,326 shares worth about $2,688,779, with company insiders owning around 4.30% of the stock.

Institutional Investor Activities

Recent activity from institutional investors indicates a growing interest in Palomar's stock. For example, Whittier Trust Co. of Nevada Inc. has taken a new position worth roughly $25,000 in the third quarter. GAMMA Investing LLC boosted its stake in Palomar by 48.6%, now holding 382 shares valued at around $36,000 after acquiring an additional 125 shares.

Farther Finance Advisors LLC increased their stake by 490.9%, claiming 455 shares worth approximately $43,000 after purchasing 378 additional shares. Other institutional investors, such as International Assets Investment Management LLC and DekaBank Deutsche Girozentrale, have also taken newer positions in the stock, reinforcing confidence from the financial community. Currently, institutional investors and hedge funds own about 90.25% of Palomar's shares.

Company Background

Palomar Holdings, Inc. is a specialty insurance provider focused on property and casualty insurance for residential and commercial entities across the United States. Its offerings include various specialty property insurance products, encompassing residential and commercial earthquake coverage, fronting, commercial all-risk policies, specialty homeowners insurance, inland marine coverage, Hawaii hurricane insurance, residential flood insurance, and other unique products such as assumed reinsurance.

Palomar, Stocks, Analysts