Last Updated: 20 Sep 2024
Executive Summary
Palomar Holdings Inc. (PLMR) is a specialized property insurance provider with a market capitalization of $2.54 billion. The company has strong fundamentals with a trailing P/E ratio of 25.5, a profit margin of 21.6%, and a return on equity of 20.4%. Analysts are bullish on PLMR, with a consensus target price of $107.8 and a majority of analysts recommending a "Buy" or "Strong Buy" rating.
Company Overview
Palomar Holdings Inc. is an insurance holding company that offers specialized property insurance to residential and commercial clients. The company is headquartered in La Jolla, California and has been in operation since 1988. PLMR's insurance products include homeowners insurance, commercial property insurance, and earthquake insurance. The company operates in the United States and Puerto Rico.
Fundamental Analysis
Palomar Holdings Inc. has a strong financial profile. The company's revenue has grown by 45% over the past year, and its earnings per share have grown by 44.9%. PLMR has a solid balance sheet with a debt-to-equity ratio of 0.4 and a current ratio of 2.0. The company's return on assets and return on equity are both above industry averages.
Technical Analysis
Palomar Holdings Inc.'s stock price has been in a bullish trend since the beginning of the year. The stock is currently trading above its 50-day and 200-day moving averages. The relative strength index (RSI) is at 65, indicating that the stock is overbought. However, the moving average convergence divergence (MACD) is still positive, indicating that the bullish trend is likely to continue.
Short Term Outlook
In the short term, Palomar Holdings Inc.'s stock price is likely to continue to rise. The company's strong fundamentals and positive technical indicators suggest that the stock is undervalued. However, the stock is overbought, so there is a risk of a pullback in the near term.
Long Term Outlook
In the long term, Palomar Holdings Inc. is a good investment. The company has a strong competitive position in the specialized property insurance market. The company's experienced management team and focus on customer service should continue to drive growth in the years to come.
Analyst Recommendations
Analysts are bullish on Palomar Holdings Inc. The consensus target price is $107.8, which represents a potential upside of 11.4% from the current price. Two analysts recommend a "Strong Buy" rating, three analysts recommend a "Buy" rating, and four analysts recommend a "Hold" rating.
