Palomar (NASDAQ:PLMR) Stock Price Down 7.6% – Time to Sell?

Palomar Holdings, Inc. (NASDAQ:PLMR)’s stock price dropped 7.6% 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 Roundup

Here are the key news stories impacting Palomar this week:

• Positive Sentiment: Q4 earnings and revenue beat consensus, driven by higher premiums and underwriting gains; management also raised its 2026 outlook — a primary driver of the stock’s strength. Palomar Q4 Earnings & Revenues Beat Estimates, Premiums Rise Y/Y
• Positive Sentiment: Brokerage coverage remains constructive — the consensus recommendation is around “Moderate Buy,” which supports continued investor interest. Palomar Given Average Recommendation of “Moderate Buy” by Brokerages
• Neutral Sentiment: Analyst/press deep-dive notes that Palomar’s diversification is driving top-line growth, but highlights emerging questions about margins and underwriting mix — watch margin trends in upcoming quarters. PLMR Q4 deep dive: Diversification drives growth, margin questions emerge
• Neutral Sentiment: Full Q4 earnings call transcript is available for detail on management’s commentary and guidance assumptions — useful for investors modeling forward earnings and loss ratios. Palomar Q4 2025 Earnings Call Transcript
• Negative Sentiment: Insider sale: CEO Mac Armstrong sold 5,000 shares at ~$122.60 (filed with the SEC), trimming his stake by ~1.44% — a potential sentiment headwind even though his remaining holding remains large. SEC Filing: Insider Sale

Analyst Ratings Changes

A number of equities research analysts recently commented on the stock. Wall Street Zen cut shares of Palomar from a “buy” rating to a “hold” rating in a research report on Saturday, February 7th. JPMorgan Chase & Co. increased their price objective on Palomar from $145.00 to $155.00 and gave the company an “overweight” rating in a report on Wednesday, January 7th. Keefe, Bruyette & Woods boosted their target price on Palomar from $170.00 to $171.00 and gave the stock an “outperform” rating in a research note on Tuesday, January 6th. Weiss Ratings upgraded Palomar from a “hold (c+)” rating to a “buy (b-)” rating in a research note on Wednesday, January 14th. Finally, Evercore ISI initiated coverage on Palomar in a research note on Monday, February 9th. They set an “outperform” rating and a $150.00 price target on the stock. Seven research analysts have rated the stock with a Buy rating and one has assigned a Hold rating to the stock. Based on data from MarketBeat, Palomar presently has a consensus rating of “Moderate Buy” and a consensus price target of $158.14.

Palomar Price Performance

The stock has a fifty day moving average of $128.74 and a 200 day moving average of $123.24. The stock has a market cap of $3.50 billion, a price-to-earnings ratio of 18.40 and a beta of 0.44.

Palomar (NASDAQ:PLMR) last announced its quarterly earnings data on Wednesday, February 11th. The company reported $2.24 EPS for the quarter, beating the consensus estimate of $2.06 by $0.18. The business had revenue of $492.63 million during the quarter, compared to analysts’ expectations of $204.58 million. Palomar had a net margin of 22.50% and a return on equity of 22.77%. The business’s quarterly revenue was up 62.7% compared to the same quarter last year. During the same period in the previous year, the business posted $1.52 EPS. As a group, equities analysts expect that Palomar Holdings, Inc. will post 5.99 earnings per share for the current fiscal year.

Insider Activity at Palomar

In other news, CFO T Christopher Uchida sold 2,103 shares of the stock in a transaction dated Wednesday, January 28th. The shares were sold at an average price of $119.88, for a total transaction of $252,107.64. Following the sale, the chief financial officer directly owned 11,473 shares of the company’s stock, valued at $1,375,383.24. This represents a 15.49% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this link. Also, CEO Mac Armstrong sold 11,484 shares of the company’s stock in a transaction that occurred on Wednesday, January 28th. The stock was sold at an average price of $119.88, for a total value of $1,376,701.92. Following the transaction, the chief executive officer directly owned 91,737 shares of the company’s stock, valued at approximately $10,997,431.56. The trade was a 11.13% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last ninety days, insiders have sold 63,998 shares of company stock valued at $7,868,669. Insiders own 3.70% of the company’s stock.

Institutional Investors Weigh In On Palomar

Several large investors have recently bought and sold shares of PLMR. Invesco Ltd. boosted its position in Palomar by 234.1% during the second quarter. Invesco Ltd. now owns 798,361 shares of the company’s stock worth $123,147,000 after acquiring an additional 559,383 shares during the last quarter. Alliancebernstein L.P. lifted its stake in Palomar by 290.2% in the 2nd quarter. Alliancebernstein L.P. now owns 497,080 shares of the company’s stock worth $76,675,000 after purchasing an additional 369,697 shares in the last quarter. Westfield Capital Management Co. LP boosted its holdings in shares of Palomar by 81.0% during the 3rd quarter. Westfield Capital Management Co. LP now owns 738,528 shares of the company’s stock worth $86,223,000 after purchasing an additional 330,592 shares during the last quarter. Sumitomo Mitsui Trust Group Inc. grew its position in shares of Palomar by 72.1% in the fourth quarter. Sumitomo Mitsui Trust Group Inc. now owns 785,165 shares of the company’s stock valued at $105,809,000 after purchasing an additional 328,993 shares in the last quarter. Finally, AustralianSuper Pty Ltd acquired a new stake in shares of Palomar in the second quarter valued at approximately $37,253,000. 90.25% of the stock is currently owned by hedge funds and other institutional investors.

About Palomar

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.