Palomar Holdings Beats and Raises. The CEO Already Sold.
Palomar Holdings beat Q2 2026 EPS estimates for the fourth straight quarter, raised full-year guidance, and initiated its first quarterly dividend, but shares fell more than 6% to $131 in the week aft
PLMR Beats and Raises, But Can't Hold CEO's Sale Price
NEW YORK, August 8 —
Palomar Holdings, Inc. (PLMR) raised full-year guidance, posted its fourth consecutive EPS beat, and launched its first quarterly cash dividend on August 4; shares fell more than 6% in the following week. The stock sits at $131, below the prices at which CEO Mac Armstrong sold $7.58 million in stock less than three weeks before the announcement.
- Q2 EPS of $2.36 beat the $2.21 estimate; four consecutive quarters of topping estimates, beat margins from +24.8% to +6.8%.
- CEO Armstrong sold 57,544 shares at $131.66 on July 15; PLMR now trades at $131, below his exit price.
- $10.47M in insider open-market sales over 90 days; zero open-market purchases from any insider.
The Selling Pattern
Armstrong, Christianson, and Herve together sold $10.47M in open-market shares over 90 days. The pattern was consistent: exercise deep-in-the-money options, then sell at market. President Jon Christianson exercised options at $49.53 and $87.51 on July 2 before selling shares at $139.50, per Form 4 filings. CEO Armstrong exercised 118,750 options on July 15 before selling 57,544 shares at $131.66, generating $7.58 million. COO Rodolphe Herve sold on July 31, four days before the Q2 earnings release. Every transaction cleared above the current $131 share price.
The Business Behind the Beat
Palomar Holdings is a specialty property and casualty insurer built around catastrophe risk that most carriers avoid, principally earthquake coverage for residential and commercial properties. The niche drove trailing twelve-month revenue of $1.09 billion, up 54.7%; policies are sold through wholesale brokers, program administrators, and retail agents rather than a captive sales force. Q2 2026 EPS of $2.36 beat the $2.21 consensus, the fourth straight quarterly surprise, with the margin of outperformance narrowing from 24.8% in Q3 2025 to 6.8% in Q2 2026, per the August 4, 2026 8-K. Management raised full-year 2026 guidance and initiated the company's first quarterly dividend alongside the results.
| Ticker | Mkt cap | Fwd P/E | 52-wk |
|---|---|---|---|
| PLMR | $3.4B | 11.6x | +7.7% |
| GSHD | $2.3B | 24.1x | -24.7% |
| NMIH | $3.4B | 8.2x | +13.7% |
| PFSI | $4.0B | 6.7x | -22.3% |
| VCTR | $6.7B | 12.6x | +52.4% |
| HLNE | $6.8B | 13.7x | -33.8% |
What Q3 Settles
At current prices, PLMR trades at 11.6x forward earnings against an analyst consensus price target of $163, a 24% gap the guidance raise and dividend have not closed. Institutional investors hold 99% of shares, with insiders at 2.7%; future Form 4 filings at Palomar Holdings, Inc.'s stock page will show whether the selling has run its course. The Q3 2026 report is the next test: a fifth consecutive beat would push the stock back toward the $131.66 to $139.50 range where Armstrong, Christianson, and Herve were reducing positions. Run the free Palomar Holdings, Inc. deep-dive →
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Frequently Asked Questions
Why did Palomar stock fall after beating earnings?
Palomar Holdings beat Q2 2026 EPS, raised full-year guidance, and announced its first quarterly dividend on August 4, yet shares fell more than 6% in the following week to trade at $131. The stock sits below the $131.66 to $139.50 range where the CEO, president, and COO had been reducing their positions in the prior 90 days. The analyst consensus price target of $163 represents a 24% gap the results have not closed.
Did Palomar Holdings insiders sell before Q2 earnings?
COO Rodolphe Herve sold shares on July 31, four days before the Q2 earnings release. CEO Mac Armstrong sold 57,544 shares at $131.66 on July 15, and President Jon Christianson sold at $139.50 on July 2, both several weeks before the report. Total open-market sales across the three executives reached $10.47 million over 90 days, with no offsetting open-market purchases from any insider.
What was Palomar's Q2 2026 EPS?
Palomar reported Q2 2026 EPS of $2.36, beating the $2.21 analyst consensus estimate. It was the company's fourth consecutive quarterly beat, though the margin of outperformance narrowed from 24.8% in Q3 2025 to 6.8% in Q2 2026.
What is PLMR's forward price-to-earnings ratio?
At a share price of $131, PLMR trades at 11.6x forward earnings. The analyst consensus price target is $163, a 24% premium to the current price, a gap the guidance raise and new dividend have not closed.
What does Palomar Holdings do?
Palomar Holdings is a specialty property and casualty insurer focused on catastrophe risk that most carriers avoid, principally earthquake coverage for residential and commercial properties. The company distributes through wholesale brokers, program administrators, and retail agents rather than a captive sales force. Trailing twelve-month revenue reached $1.09 billion, up 54.7%.
Palomar Holdings reported its fourth consecutive EPS beat in Q2 2026, raised full-year guidance, and launched its first-ever quarterly cash dividend on August 4 — then watched its shares fall more than 6% in the following week. In the six weeks before that announcement, its CEO had sold $7.6 million in shares at prices the stock still cannot reclaim.