Palomar (NASDAQ:PLMR) Trading Down 7.6% – Here’s What Happened

Palomar Holdings, Inc. (NASDAQ:PLMR) was down 7.6% during mid-day trading on Thursday . The company traded as low as $122.03 and last traded at $121.6140. Approximately 75,814 shares changed hands during mid-day trading, a decline of 66% from the average daily volume of 222,984 shares. The stock had previously closed at $131.64.

Palomar News Summary

Here are the key news stories impacting Palomar this week:

• Positive Sentiment: Q4 beat and raised outlook — Adjusted EPS of $2.24 topped consensus, adjusted net income rose ~48% Q/Q, gross written premiums grew ~32% in Q4 and Palomar guided 2026 adjusted net income to $260–$275M (includes modest catastrophe estimate). Palomar Reports Fourth Quarter & Full Year 2025 Results
• Positive Sentiment: Strong full‑year metrics — 2025 gross written premiums hit $2.03B (+31.5%), adjusted net income $216.1M (+61.9%), annualized adjusted ROE ~25.9%; cash & invested assets ~$1.5B and ~ $112.7M repurchase capacity remain. Palomar Q4 Earnings & Revenues Beat Estimates, Premiums Rise Y/Y
• Neutral Sentiment: New analyst coverage — Evercore ISI initiated coverage, which can increase institutional visibility but doesn’t guarantee immediate price direction. Evercore ISI Initiates Coverage on Palomar
• Neutral Sentiment: Short interest fell in January (down ~13% vs. mid‑month), reducing one potential downward pressure on the stock; short interest remains small (~1.7% of float). (No direct link)
• Neutral Sentiment: Peer comparison piece on Palomar vs. Root provides context on business mix but is not a primary driver of today’s move. Critical Contrast: Palomar & Root
• Negative Sentiment: Underwriting pressure — Q4 total loss ratio rose to 30.4% (from 25.7% a year ago) and adjusted combined ratio widened (adjusted combined ratio 73.4% in Q4 vs. 71.7% prior), driven by a surge in non‑catastrophe losses and higher attritional losses — a potential headwind for margin sustainability. Compared to Estimates, Palomar Q4 Earnings: Key Metrics
• Negative Sentiment: Corporate insiders have sold significant stock over the past six months (multiple executives), which can spook investors and weigh on sentiment. QuiverQuant Summary & Insider Activity

Wall Street Analysts Forecast Growth

A number of brokerages recently weighed in on PLMR. Weiss Ratings raised shares of Palomar from a “hold (c+)” rating to a “buy (b-)” rating in a research note on Wednesday, January 14th. JPMorgan Chase & Co. increased their price target on Palomar from $145.00 to $155.00 and gave the stock an “overweight” rating in a report on Wednesday, January 7th. Wall Street Zen downgraded Palomar from a “buy” rating to a “hold” rating in a research note on Saturday, February 7th. Keefe, Bruyette & Woods upped their target price on Palomar from $170.00 to $171.00 and gave the company an “outperform” rating in a research report on Tuesday, January 6th. Finally, Evercore ISI assumed coverage on Palomar in a research note on Monday. They set an “outperform” rating and a $150.00 target price for the company. Seven equities research analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the company. According to data from MarketBeat.com, the stock has an average rating of “Moderate Buy” and an average target price of $158.14.

Palomar Stock Down 3.5%

The firm’s 50 day simple moving average is $128.28 and its two-hundred day simple moving average is $123.20. The stock has a market capitalization of $3.37 billion, a P/E ratio of 19.81 and a beta of 0.44.

Palomar (NASDAQ:PLMR) last issued its earnings results on Wednesday, February 11th. The company reported $2.24 EPS for the quarter, beating the consensus estimate of $2.06 by $0.18. Palomar had a return on equity of 21.93% and a net margin of 22.59%.The company had revenue of $492.63 million during the quarter, compared to the consensus estimate of $204.58 million. During the same period last year, the business posted $1.52 EPS. The firm’s revenue for the quarter was up 62.7% compared to the same quarter last year. As a group, equities research analysts expect that Palomar Holdings, Inc. will post 5.99 earnings per share for the current year.

Insider Activity

In related news, President Jon Christianson sold 515 shares of Palomar stock in a transaction on Saturday, January 31st. The shares were sold at an average price of $121.75, for a total value of $62,701.25. Following the completion of the sale, the president owned 65,421 shares of the company’s stock, valued at approximately $7,965,006.75. This trade represents a 0.78% decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, CFO T Christopher Uchida sold 545 shares of the business’s stock in a transaction on Saturday, January 31st. The shares were sold at an average price of $121.74, for a total transaction of $66,348.30. Following the sale, the chief financial officer owned 14,005 shares of the company’s stock, valued at $1,704,968.70. This trade represents a 3.75% decrease in their position. The SEC filing for this sale provides additional information. Over the last 90 days, insiders have sold 58,998 shares of company stock valued at $7,255,669. Corporate insiders own 3.70% of the company’s stock.

Institutional Inflows and Outflows

A number of hedge funds have recently made changes to their positions in the business. Wealth Enhancement Advisory Services LLC increased its position in shares of Palomar by 3.3% during the fourth quarter. Wealth Enhancement Advisory Services LLC now owns 2,546 shares of the company’s stock worth $333,000 after acquiring an additional 82 shares in the last quarter. Clearstead Advisors LLC boosted its stake in Palomar by 31.0% during the 3rd quarter. Clearstead Advisors LLC now owns 397 shares of the company’s stock valued at $46,000 after purchasing an additional 94 shares during the last quarter. California State Teachers Retirement System increased its holdings in Palomar by 0.4% during the 2nd quarter. California State Teachers Retirement System now owns 24,207 shares of the company’s stock worth $3,734,000 after purchasing an additional 97 shares in the last quarter. Bank of Montreal Can raised its stake in shares of Palomar by 1.7% in the second quarter. Bank of Montreal Can now owns 5,766 shares of the company’s stock worth $889,000 after purchasing an additional 98 shares during the last quarter. Finally, Hollencrest Capital Management lifted its holdings in shares of Palomar by 56.5% in the second quarter. Hollencrest Capital Management now owns 313 shares of the company’s stock valued at $48,000 after purchasing an additional 113 shares in the last quarter. 90.25% of the stock is currently owned by institutional investors and hedge funds.

Palomar Company Profile

Palomar Holdings, Inc (NASDAQ: PLMR) is a specialty insurance holding company focused on providing medical stop-loss coverage and related administrative services to self-funded employer health plans in the United States. The firm operates through two primary business segments—Medical Stop-Loss and Specialty Program Management—to deliver tailored risk protection and comprehensive program administration.

In its Medical Stop-Loss segment, Palomar underwrites excess and aggregate stop-loss policies designed to shield self-insured employers from catastrophic medical claims that exceed pre-determined retention levels.