Palomar Holdings is a specialty property and casualty insurer with a perfect 4-for-4 earnings beat streak, 60% revenue growth, and exceptional free cash flow conversion of 268%, trading at an attractive forward P/E of 10.1x — though it remains below its 200-day moving average in a confirmed downtrend.
Thesis pillars
- Perfect Earnings Beat Streak→Stable
- Revenue Growth Leadership→Stable
- Fcf Quality Premium→Stable
- +1 more pillar — see the Why tab for full reasoning
Palomar Holdings, Inc. (PLMR) Stock Analysis
Range Bound setup · Catalyst-Driven edge
Financial Services · Insurance - Property & Casualty
Wait for pullback to $123.02. At $137.56 the A.R:R is 0.3:1 — below the 1.5:1 minimum for BUY_NOW. Engine's entry $123.02 (200-day MA) is the shallowest technical level that clears the 2:1 A.R:R minimum. Key risks: Thin upside margin: 3.7%; Negative momentum.
Palomar Holdings underwrites specialty property and casualty insurance across five product lines—Earthquake, Casualty, Inland Marine and Other Property, Crop, and Fronting—distributed through agents, brokers, and strategic insurer partnerships in both admitted and E&S markets.... Read more
Wait for pullback to $123.02. At $137.56 the A.R:R is 0.3:1 — below the 1.5:1 minimum for BUY_NOW. Engine's entry $123.02 (200-day MA) is the shallowest technical level that clears the 2:1 A.R:R minimum. Key risks: Thin upside margin: 3.7%; Negative momentum. Chart setup: RSI 46 mid-range, Bollinger mid-band. Maintain position. Not compelling to add more. | News modifier +2 (HOLD_IF_HOLDING → STRONG_BUY_WAIT) Score 6.7/10, moderate confidence.
Passes 4/8 gates (clean insider activity, news boost analyst 0.80, semi cycle peak clear, materials cycle peak clear). Fails on weak momentum and favorable risk/reward ratio. Suitability: speculative.
About Palomar Holdings, Inc.
About Palomar Holdings, Inc.
Palomar Holdings generated $2.0 billion in gross written premiums for the year ended December 31, 2025, up from $16.6 million in its first year of operations in 2014 — a compound annual growth rate of approximately 55%. California accounts for 31% of gross written premiums and earthquake insurance represented approximately 28% of the 2025 premium base. The company's insurance subsidiaries carried an A (Excellent) financial strength rating from A.M. Best, with a return on equity of 23.6% for fiscal 2025.
Palomar earns revenue across five specialty product categories — Earthquake, Casualty, Inland Marine and Other Property, Crop, and Fronting — distributing through retail agents, program administrators, wholesale brokers, and strategic partnerships with over 35 insurance companies. The company generates additional fee income through quota share reinsurance treaties where third-party reinsurers pay ceding commissions for access to Palomar's underwriting pools. Reinsurance caps net pre-tax per-event losses at $20 million for earthquakes and $11 million for hurricanes, with $468.7 million in aggregate reinsurance recoverables as of December 31, 2025; a $525 million catastrophe bond via Torrey Pines Re Ltd. closed in the second quarter of 2025 to supplement traditional coverage. In January 2026, Palomar completed the acquisition of Gray Casualty & Surety Company — financed through $450 million in unsecured credit facilities maturing in January 2031 — broadening casualty and surety capacity.
Show full overview
California's 31% share of gross written premiums creates the company's largest geographic concentration: the 10-K explicitly notes the company is 'concentrated in California' and exposed to the state's regulatory environment, which includes constraints on pricing, underwriting actions, and rate-change timing or approval. If the San Andreas Fault generates a major seismic event, earthquake reinsurance coverage exhausts at $3.1 billion per event, while the company's net earthquake retention stands at $20 million — approximately 2.1% of total stockholders' equity as of December 31, 2025. California regulatory constraints may limit the company's ability to adjust rates swiftly following catastrophic loss events.
See also: Financial Services · Insurance - Property & Casualty
From Palomar Holdings, Inc.'s most recent 10-K filing, extracted June 11, 2026.
Recent developments
updated 2026-07-26Recent Developments — Palomar Holdings, Inc.
Latest news
- NEWS Palomar Holdings, Inc. Announces First Quarter 2026 Financial Results Release Date and Conference Call - The Globe and M — The Globe and Mail neutral
- NEWS Palomar Holdings (PLMR) CEO sells 3,500 shares under 10b5-1 plan - Stock Titan — Stock Titan negative
- NEWS 3 Reasons We Love Palomar Holdings (PLMR) - StockStory — StockStory positive
- NEWS Is Palomar Holdings Inc (PLMR) a Bargain After 3.2% Drop? GF Val - GuruFocus — GuruFocus neutral
- NEWS Is Palomar Holdings Inc (PLMR) a Bargain After 3.2% Drop? GF Value Says Undervalued - GuruFocus — GuruFocus positive
Generated 2026-07-26T06:02:04Z.
Upcoming dated catalysts
Thesis
Key Metrics
Quality Signals
Options Flow
Concentration Risks(10-K Item 1A)
- MEDIUMGeographicCalifornia31%10-K Item 1: 'California represents our largest current exposure with 31% of our gross written premiums for the year ended December 31, 2025'
- MEDIUMProductearthquake insurance28%10-K Item 1: 'approximately 28% of our gross written premiums were related to earthquake insurance'
Material Events(8-K, last 90d)
- 2026-05-26Item 5.02LOWScott Beiser appointed Class I director of Palomar Holdings, effective May 21, 2026, to serve until 2029 Annual Meeting. Appointed to Audit, Compensation, and Investment Committees. No officer departure; no reason cited.SEC filing →
Model-generated analysis — not investment advice. Not a registered investment advisor. Past performance does not guarantee future results.
Show full disclosure ▾Hide full disclosure ▴
About TrendMatrix. TrendMatrix is a publisher of general securities research and market commentary. We publish on a regular schedule. All content is the same for every subscriber in a tier — we do not provide personalized investment advice and we do not take into account any individual subscriber's financial situation, investment objectives, risk tolerance, tax situation, or holdings.
Not investment advice. TrendMatrix is not a registered investment adviser. Our content is for informational and educational purposes only. Consult your own licensed investment adviser, broker, or tax professional before making any investment decision.
Conflicts and positions. The TrendMatrix editorial team frequently holds personal long-term positions in securities discussed. We disclose positions held at the time of publication on each piece. We maintain a trading-window policy: we do not initiate or close positions in the same direction as a TrendMatrix publication within 24 hours before or 72 hours after publication.
No paid promotion. TrendMatrix does not accept payment from any issuer, broker, or third party in exchange for coverage of any security. Our sole compensation is subscription revenue.
No fiduciary duty. No fiduciary, advisory, or agency relationship is created between you and TrendMatrix by reading our content or subscribing to our service.
Performance. Past performance is not indicative of future results. Performance figures reflect the published model only and do not reflect any individual subscriber's actual results.
Rating Breakdown
1 floor-breaker·1 ceiling hit
Momentum below the gate floor. Component breakdown shows what dragged the score down.static
Price Targets
Position Sizing
Risk Alerts
Earnings
Verdict History
Frequently Asked Questions
Wait for pullback to $123.02. At $137.56 the A.R:R is 0.3:1 — below the 1.5:1 minimum for BUY_NOW. Engine's entry $123.02 (200-day MA) is the shallowest technical level that clears the 2:1 A.R:R minimum. Key risks: Thin upside margin: 3.7%; Negative momentum. Chart setup: RSI 46 mid-range, Bollinger mid-band. Maintain position. Not compelling to add more. | News modifier +2 (HOLD_IF_HOLDING → STRONG_BUY_WAIT) Target $142.68 (+3.7%), stop $115.49 (−19.1%), A.R:R 0.3:1. Score 6.7/10, moderate confidence.
Take-profit target: $142.68 (+3.7% upside). Target $142.68 (+3.7%), stop $115.49 (−19.1%), A.R:R 0.3:1. Stop-loss: $115.49.
Thin upside margin: 3.7%; Negative momentum.
Palomar Holdings, Inc. trades at a P/E of 18.0 (forward 12.3). TrendMatrix value score: 7.2/10. Verdict: Buy (Wait for Entry).
15 analysts cover PLMR with a consensus score of 4.1/5. Average price target: $164.
What does Palomar Holdings, Inc. do?Palomar Holdings underwrites specialty property and casualty insurance across five product lines—Earthquake, Casualty,...
Palomar Holdings underwrites specialty property and casualty insurance across five product lines—Earthquake, Casualty, Inland Marine and Other Property, Crop, and Fronting—distributed through agents, brokers, and strategic insurer partnerships in both admitted and E&S markets. The company generated $2.0 billion in gross written premiums for 2025, growing from $16.6 million in its first year, and has been profitable since 2016.