Palomar Holdings (PLMR) falls after Jefferies cuts price target on underwriting outlook

Palomar Holdings (PLMR) shares fell 4.2% in morning trading on May 14, 2026, after Jefferies cut its price target on the specialty insurer to $156 from $163, citing lower underwriting income projections. Jefferies kept a “Buy” rating, saying growth outside Palomar’s commercial earthquake business remains strong. The firm said the changing business mix could pressure loss and expense ratios, key measures of underwriting profitability. Palomar shares were trading at $108.49, down 17.8% year to date and 38.2% below their 52-week high of $175.67 reached in June 2025. The stock’s largest move in the past year came after a second-quarter report in which adjusted earnings beat estimates but the combined ratio of 78.8% missed expectations, raising concerns about claims and expense trends.