Palomar stock soars to all-time high of $139.66 amid robust growth

Palomar Holdings Inc (NASDAQ:PLMR) has reached an impressive milestone, with its stock price hitting an all-time high of $139.66. The company, now valued at $3.69 billion, has caught analysts’ attention with price targets ranging from $115 to $155. This peak reflects a significant surge in investor confidence, as evidenced by the company’s remarkable 1-year change, boasting a 67.47% increase. The ascent to this record price level underscores Palomar’s strong performance, supported by impressive 47.33% revenue growth and trading at 29.75 times earnings. Investors are closely monitoring the company’s trajectory, as it continues to outperform expectations and solidify its position within the industry. InvestingPro analysis reveals 14 additional key insights about PLMR’s financial health and growth potential, available exclusively to subscribers.

In other recent news, Palomar Holdings has been the focus of several notable developments that are of interest to investors. Piper Sandler reaffirmed its Overweight rating on Palomar with a price target of $150, following an analyst day that emphasized the company’s strategy to double its size by 2025. The company’s goal, known as "Palomar 2X," aims to double capital, premium, and net adjusted income while maintaining a return on equity of 20% or higher. In addition, Keefe, Bruyette & Woods (KBW) raised its price target for Palomar to $155, citing confidence in the company’s growth strategy and potential to enhance shareholder value. This assessment was based on Palomar’s investor day presentation and led KBW to adjust its earnings per share estimates for 2025 and 2026 to $6.50 and $8.00, respectively.

Palomar also announced a definitive agreement to acquire Advanced AgProtection, a Texas-based Crop Managing General Agent, which is expected to bolster its position in the crop insurance market. This acquisition is seen as a strategic move to expand Palomar’s portfolio and infrastructure within the specialty insurance sector. The company has cautioned that forward-looking statements regarding the acquisition are subject to various risks and uncertainties. Additionally, KBW maintained its Outperform rating on Palomar, highlighting a modest reserve redundancy in property-related claims, which suggests conservative financial management. The firm’s analysts believe that Palomar’s shares will benefit from continued rapid and profitable premium growth.

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