Core Insights - Palomar Holdings is a specialty property and casualty insurer that focuses on niche markets underserved by traditional carriers, leveraging disciplined underwriting and diversified distribution channels for profitable growth [4] Transaction Summary - On January 21, 2026, CEO Mac Armstrong sold 5,000 shares for approximately $645,000, representing 1.15% of his total ownership at that time [2][6] - Post-transaction, Armstrong holds 80,314 direct shares valued at about $10.4 million and 348,388 indirect shares [2] - The transaction was based on a weighted average purchase price of $129.00, with the post-transaction value calculated at a market close of $130.00 [2] Company Performance - For the trailing twelve months (TTM), Palomar Holdings reported revenue of $778.36 million and net income of $175.87 million [3] - As of January 31, 2026, the stock price was $123.59, reflecting a 1-year price change of 13.77% [3] Market Outlook - Despite a recent decline of approximately 8% in stock price, Wall Street remains bullish on Palomar Holdings due to the growth in the specialty insurance market and the increasing frequency of natural disasters [7]

Company Overview - Palomar Holdings, Inc. (PLMR) is a specialty insurance company focused on property and casualty products, including earthquake, inland marine, and excess and surplus lines [4] Analyst Ratings and Price Targets - JPMorgan raised the price target for PLMR to $155 from $145 while maintaining an Overweight rating, indicating confidence in the company's growth potential despite challenging industry fundamentals [2] - Keefe, Bruyette & Woods also raised its price target on PLMR to $171 from $170 and reiterated an Outperform rating, reflecting positive analyst sentiment towards the stock [3] Industry Context - The property and casualty (P&C) insurance industry is facing worsening fundamentals, but pricing, margin, and growth concerns appear to be largely priced in according to analysts [2]

Palomar (PLMR) is looking like an interesting pick from a technical perspective, as the company reached a key level of support. Recently, PLMR crossed above the 200-day moving average, suggesting a long-term bullish trend.A useful tool for traders and analysts, the 200-day simple moving average helps determine long-term market trends for stocks, commodities, indexes, and other financial instruments. It moves higher or lower in conjunction with longer-term price performance, and serves as a support or resist ...

Core Insights - The article emphasizes the focus on value investing in Asia, particularly in Hong Kong, targeting stocks with significant discrepancies between market price and intrinsic value [1] - It highlights two main categories of investment opportunities: deep value balance sheet bargains and wide moat stocks, which are characterized by their strong competitive advantages [1] Group 1: Investment Strategy - The investment strategy involves seeking deep value balance sheet bargains, such as net cash stocks and low price-to-book (P/B) ratio stocks [1] - The strategy also includes identifying wide moat stocks, which are high-quality businesses with sustainable competitive advantages [1] Group 2: Research Service - The research service, Asia Value & Moat Stocks, provides value investors with ideas and monthly updates on potential investment opportunities in the Asian equity market [1] - The service is led by an analyst with over a decade of experience in both buy and sell sides of the market, specializing in Asian equities [1]

Core Insights - Palomar Holdings, Inc. (PLMR) has seen a stock price increase of 29.3% over the past year, outperforming its industry and major indices [1] - The company has a market capitalization of $3.64 billion and has consistently beaten earnings estimates with an average surprise of 17.65% over the last four quarters [2] Stock Performance - PLMR is currently trading above its 50-day and 200-day simple moving averages of $122.22 and $134.23, indicating strong upward momentum [3] Growth Projections - The Zacks Consensus Estimate predicts a 51.2% year-over-year increase in earnings per share for 2025, with revenues expected to reach $835.13 million, reflecting a 52% increase [7] - Analysts have raised their earnings estimates for 2025 and 2026 by 5.6% and 2.5%, respectively, over the past 60 days [8] Analyst Sentiment - The average price target for PLMR is $156.17 per share, suggesting a potential upside of 13.7% from the last closing price [9] Financial Metrics - Palomar's return on equity stands at 24.2%, significantly higher than the industry average of 8%, and its return on invested capital is 21%, compared to the industry average of 6.1% [10] Growth Drivers - The introduction of the fee-based platform PLMR-FRONT is expected to enhance earnings stability and drive medium-term growth [6] - Factors such as increased policy volumes, strong retention rates, and new partnerships are anticipated to contribute to premium growth [11] Investment Strategy - The company is focusing on Surety as a long-term growth opportunity, which offers diversification and stability [12] - Net investment income is projected to rise due to a high-quality fixed-income portfolio and improved yields [14] Capital Position - Palomar maintains a strong capital position with a debt-free balance sheet and is actively executing share buybacks as part of its shareholder return initiatives [15] Market Positioning - The company is positioning itself as a key player in the crop insurance sector, with ongoing geographic expansion and strategic partnerships expected to fuel future growth [16] - Palomar's risk transfer strategy through reinsurance helps mitigate exposure to catastrophic events, contributing to a stable business model [17]

Core Insights - Riverwater Partners' Small Cap Strategy reported solid results in Q3 2025 but lagged behind the benchmark due to market preference for lower-quality companies [1] - The strategy focuses on higher-quality companies with strong fundamentals and a clear path to profitability, positioning itself well for future challenges [1] Company Performance - Palomar Holdings, Inc. (NASDAQ:PLMR) has a market capitalization of $3.362 billion, with a one-month return of -3.16% and a 52-week gain of 12.93% [2] - On December 15, 2025, Palomar's stock closed at $125.52 per share [2] Underperformance Analysis - Palomar's stock underperformance in Q3 2025 is attributed to weaker commercial market pricing, a shift away from defensive sectors, and concerns about underwriting margin compression [3] - Rate reductions in commercial earthquake and property markets have pressured premium renewal yields, impacting growth [3] - Despite challenges, Palomar has strong visibility into premium growth through multi-year rate plans and expansion into diversified lines like casualty and crop insurance [3] Financial Results - In Q3 2025, Palomar reported adjusted net income of $55.2 million or $2.01 per share, compared to $32.4 million or $1.23 per share in Q3 2024 [4] - The increase in adjusted net income indicates potential for growth, although some analysts suggest that certain AI stocks may offer greater upside potential [4]

Core Viewpoint - Palomar (PLMR) has reached a significant support level and shows potential for investors from a technical perspective, particularly after breaking through the 20-day moving average, indicating a short-term bullish trend [1]. Technical Analysis - The 20-day simple moving average (SMA) is a widely used trading tool that smooths out price fluctuations over a 20-day period, providing more trend reversal signals than longer-term moving averages [1][2]. - A stock price above the 20-day SMA indicates a positive trend, while a price below suggests a downward trend [2]. Earnings Estimates - PLMR has experienced positive earnings estimate revisions, with no estimates decreasing in the past two months and five estimates increasing, leading to a rise in the consensus estimate [3]. - The combination of positive technical factors and favorable earnings estimate revisions suggests that investors may want to monitor PLMR for potential gains in the near future [3]. Performance Metrics - Over the past four weeks, PLMR has gained 8.4%, and the company holds a Zacks Rank 2 (Buy), indicating strong potential for further upward movement [4].

Core Viewpoint - Palomar (PLMR) has shown a 7% increase in stock price over the past four weeks, with a mean price target of $155.67 indicating a potential upside of 28% from the current price of $121.66 [1] Price Targets and Analyst Estimates - The mean estimate consists of six short-term price targets with a standard deviation of $14.62, where the lowest estimate is $134.00 (10.1% increase) and the highest is $170.00 (39.7% increase) [2] - A low standard deviation among price targets suggests a high degree of agreement among analysts regarding the stock's price movement [9] Earnings Estimates and Market Sentiment - Analysts have shown increasing optimism about PLMR's earnings prospects, with five estimates moving higher in the last 30 days and no negative revisions, leading to a 6% increase in the Zacks Consensus Estimate [12][11] - PLMR holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimates [13] Caution on Price Targets - Solely relying on consensus price targets for investment decisions may not be wise, as empirical research indicates that such targets often mislead investors [3][7] - Analysts may set overly optimistic price targets due to business incentives, which can inflate expectations [8]

Core Insights - Palomar Holdings, Inc. (PLMR) has seen a 15.8% increase in share price over the past year, outperforming its industry and the broader market indices [1] - The company has a market capitalization of $3.36 billion and has consistently beaten earnings estimates over the past four quarters with an average surprise of 17.65% [2] Financial Performance - The Zacks Consensus Estimate for Palomar Holdings' 2025 earnings per share indicates a year-over-year increase of 51.2%, with revenues projected to reach $835.13 million, reflecting a 52% improvement [3] - Analysts have raised earnings estimates for 2025 and 2026 by 5.6% and 1.9%, respectively, over the past 30 days [4] Growth Drivers - The company expects stronger earnings from its fee-based platform and rising policy volumes, with growth driven by geographic expansion, new partnerships, and increased distribution [6][11] - Palomar identifies Surety as a long-term growth opportunity, which is not correlated with traditional insurance cycles, providing diversification [12] Investment Metrics - The average target price for PLMR is $155.67 per share, suggesting a potential upside of 20.1% from the last closing price [7] - Return on equity stands at 24.2%, significantly higher than the industry average of 8%, while return on invested capital is 21%, compared to the industry average of 6.1% [10] Strategic Positioning - The company maintains a strong capital position with a debt-free balance sheet and continues to execute share buybacks as part of its shareholder return initiatives [13] - Palomar's risk transfer strategy helps stabilize earnings and improve its combined ratio, contributing to a resilient business model [15] Conclusion - Palomar Holdings is well-positioned in the crop insurance sector, with a diverse product suite and ongoing geographic growth, indicating strong prospects for future expansion [14]

Core Insights - Palomar Holdings reported Q3 CY2025 revenue of $244.7 million, exceeding analyst expectations by 10.2% and reflecting a year-on-year growth of 64.8% [1][6] - The company's non-GAAP profit was $2.01 per share, which was 24.8% above consensus estimates [1][6] Financial Performance - Adjusted operating income reached $67.14 million, representing a 27.4% margin and a year-on-year growth of 74.4% [6] - Operating margin improved to 27.4%, up from 25.9% in the same quarter last year [6] - Market capitalization stands at $3.39 billion [6] Business Strategy and Growth - Management attributed strong performance to product diversification, disciplined underwriting, and robust premium growth across various product lines [3][5] - The company plans to integrate the Gray Casualty and Surety Company acquisition and expand specialty lines, with a focus on strategic partnerships and technology investments [4] - The goal is to double adjusted net income every 3 to 5 years, maintaining a strong return on equity [4] Product Diversification - All major product groups, except for fronting, experienced double-digit premium growth, with new lines like crop and surety contributing significantly [7] - The residential earthquake franchise grew by 11% year-on-year, supported by new business production and high policy retention [7] - Crop insurance premiums doubled year-on-year due to favorable market conditions and new talent, while builders risk products also saw strong expansion [7] Risk Management - The company maintains a conservative reserving approach, particularly in its casualty business, with over 80% of reserves held as incurred but not reported (IBNR) [8]