In a remarkable display of market confidence, Palomar Holdings Inc (NASDAQ:PLMR) stock has reached a 52-week high, climbing to an impressive $112.11. With a market capitalization of $2.96 billion and a robust revenue growth of 40.19% over the last twelve months, Palomar has demonstrated strong fundamental performance. According to InvestingPro analysis, the company maintains a GREAT financial health score. This peak reflects a significant surge in value, marking a 92.03% increase over the past year. Investors have shown growing enthusiasm for Palomar's prospects, propelling the stock to new heights as the company continues to capitalize on strategic opportunities and expand its market presence. Trading at a P/E ratio of 25.76, the stock shows signs of being slightly undervalued according to InvestingPro Fair Value metrics. The 52-week high serves as a testament to Palomar's strong performance and the positive sentiment surrounding its future potential in the industry. Discover 11 additional key insights about PLMR and access the comprehensive Pro Research Report, available exclusively on InvestingPro.
In other recent news, Palomar Holdings has been the subject of multiple analyst upgrades. Investment firm Piper Sandler increased its price target for Palomar to $119 based on a revised valuation multiple, while maintaining an Overweight rating. This adjustment reflects an anticipated forward earnings estimate of $6.80 per share for 2026. Similarly, financial services firm Keefe, Bruyette & Woods raised its price target for Palomar to $136, citing positive growth prospects and an optimistic view of the company's ability to grow its gross and net written premiums.
In addition, Palomar appointed Benson Latham as Executive Vice President, Head of Crop, signaling strategic efforts to expand in the specialty insurance sector. Latham, with three decades of experience in the Crop insurance industry, is expected to lead Palomar’s Crop insurance operations effectively.
On the earnings and revenue front, Palomar reported robust growth in its third-quarter performance in 2024. The company's adjusted net income and total premium growth increased by 39% and 32% respectively, driven by gains in the Earthquake, Casualty, and Crop insurance segments. Palomar also successfully raised $160 million in equity, aiming to capitalize on market dislocations and expand its crop business. The company's Crop insurance segment generated $60 million in premiums, a significant increase from the previous year's $12.1 million. Palomar anticipates a full-year adjusted net income guidance of $124 million to $128 million, a 35% increase from 2023.
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