In a remarkable display of market confidence, Palomar Holdings Inc (NASDAQ:PLMR) stock has reached a 52-week high, climbing to an impressive $111.04. This peak reflects a significant surge in the company's stock value, marking a substantial turnaround from its previous positions within the year. Investors have shown increasing enthusiasm for Palomar, as evidenced by the stock's 1-year change data, which showcases an exceptional 86.77% increase. This bullish trend underscores the company's robust performance and the positive sentiment that currently surrounds its growth prospects in the market.
In other recent news, Palomar Holdings Inc. has seen significant developments. The company reported a robust third-quarter performance in 2024, with key financial metrics such as adjusted net income and total premium growth increasing by 39% and 32% respectively. This growth was driven largely by the Earthquake, Casualty, and Crop insurance segments. Palomar also successfully raised $160 million in equity, intending to capitalize on market dislocations and expand its crop business.
The company's new Executive Vice President, Benson Latham, is set to lead Palomar's Crop insurance operations, leveraging his three decades of experience in the Crop insurance industry. The Crop insurance segment generated $60 million in premiums, a significant increase from the previous year's $12.1 million. Palomar's management plans to take on more risk in the Crop sector starting January 1, 2025, indicating a strategic focus on this particular segment.
These are recent developments, and it's important to note that the company anticipates a full-year adjusted net income guidance of $124 million to $128 million, a 35% increase from 2023. Palomar is also on track to meet its Palomar 2X goal, which aims to double its adjusted underwriting income in three years.
InvestingPro Insights
Palomar Holdings Inc's recent stock performance aligns with several key metrics and insights from InvestingPro. The company's stock is indeed trading near its 52-week high, with the current price at 98.71% of that peak. This strong performance is further supported by impressive returns across various timeframes. InvestingPro data shows a 96.04% year-to-date price total return and an 81.85% return over the past year, corroborating the article's mention of the 86.77% 1-year change.
The company's financial health appears robust, with a revenue growth of 40.19% over the last twelve months as of Q3 2024, and an even more striking 63.31% quarterly revenue growth in Q3 2024. This growth trajectory is complemented by a healthy EBITDA growth of 43.1% over the same period.
InvestingPro Tips highlight that Palomar is trading at a low P/E ratio relative to near-term earnings growth, with a PEG ratio of 0.54, suggesting potential undervaluation despite the recent stock price surge. Additionally, analysts predict the company will be profitable this year, which could further fuel investor confidence.
For readers seeking more comprehensive analysis, InvestingPro offers 12 additional tips for Palomar Holdings, providing a deeper dive into the company's financial outlook and market position.
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