Palantir Technologies (NASDAQ:PLTR) Cut to Hold at Zacks Research

Zacks Research downgraded shares of Palantir Technologies (NASDAQ:PLTR) from a strong-buy rating to a hold rating in a research note published on Tuesday,Zacks reports.

PLTR has been the subject of several other reports. Citigroup cut Palantir Technologies from a “buy” rating to a “market perform” rating in a report on Tuesday, August 4th. Northland Securities set a $200.00 target price on Palantir Technologies in a research report on Tuesday, August 4th. Roth Capital initiated coverage on Palantir Technologies in a report on Tuesday, August 4th. They issued a “buy” rating on the stock. Benchmark restated a “hold” rating on shares of Palantir Technologies in a research report on Tuesday, August 4th. Finally, Wolfe Research initiated coverage on Palantir Technologies in a research note on Tuesday, August 4th. They set a “buy” rating for the company. One equities research analyst has rated the stock with a Strong Buy rating, twenty-four have issued a Buy rating, nine have given a Hold rating and three have assigned a Sell rating to the company. According to MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and a consensus target price of $198.75.

Palantir Technologies Trading Up 2.4%

Shares of Palantir Technologies stock opened at $198.78 on Tuesday. Palantir Technologies has a 12-month low of $106.37 and a 12-month high of $207.52. The stock has a market cap of $477.68 billion, a PE ratio of 169.90, a price-to-earnings-growth ratio of 2.73 and a beta of 1.60. The company has a 50-day moving average of $176.28 and a two-hundred day moving average of $149.88.

Palantir Technologies (NASDAQ:PLTR) last posted its quarterly earnings results on Monday, August 3rd. The company reported $0.41 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.34 by $0.07. The company had revenue of $1.94 billion during the quarter, compared to the consensus estimate of $1.81 billion. Palantir Technologies had a net margin of 49.01% and a return on equity of 30.57%. The company’s revenue for the quarter was up 92.8% on a year-over-year basis. During the same period last year, the firm earned $0.16 EPS. On average, sell-side analysts forecast that Palantir Technologies will post 1.28 EPS for the current fiscal year.

Insider Activity

In other news, insider Alexander C. Karp sold 492,348 shares of Palantir Technologies stock in a transaction dated Thursday, August 20th. The shares were sold at an average price of $174.79, for a total transaction of $86,057,506.92. Following the completion of the sale, the insider directly owned 6,432,258 shares in the company, valued at $1,124,294,375.82. The trade was a 7.11% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, Director Lauren Friedman Stat sold 3,032 shares of the business’s stock in a transaction that occurred on Wednesday, August 5th. The shares were sold at an average price of $165.00, for a total transaction of $500,280.00. Following the completion of the transaction, the director directly owned 54,107 shares of the company’s stock, valued at approximately $8,927,655. This represents a 5.31% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last quarter, insiders sold 536,364 shares of company stock worth $93,083,303. Company insiders own 9.53% of the company’s stock.

Institutional Trading of Palantir Technologies

A number of hedge funds have recently bought and sold shares of PLTR. Ballast Advisors LLC purchased a new position in shares of Palantir Technologies during the 1st quarter worth $29,000. Cornerstone Financial Management LLC purchased a new stake in shares of Palantir Technologies in the fourth quarter valued at $31,000. Whipplewood Advisors LLC purchased a new stake in shares of Palantir Technologies in the first quarter valued at $32,000. Prudent Man Investment Management Inc. acquired a new position in Palantir Technologies in the fourth quarter valued at $35,000. Finally, Reflection Asset Management acquired a new position in Palantir Technologies in the fourth quarter valued at $35,000. Institutional investors and hedge funds own 45.65% of the company’s stock.

Key Stories Impacting Palantir Technologies

Here are the key news stories impacting Palantir Technologies this week:

• Positive Sentiment: Goldman Sachs upgraded Palantir to Buy from Neutral and set a $230 price target, citing a potentially larger addressable market driven by sovereign AI, custom-built applications and specialized industry solutions. Palantir Gets Goldman Sachs Upgrade as Sovereign AI Opens New Market
• Positive Sentiment: The upgrade suggests Palantir could benefit as governments and businesses seek greater control over data, infrastructure and AI models. The company’s partnership with Armada to deploy its Sovereign AI Operating System reinforces that growth narrative. Palantir Is Betting on Sovereign AI to Help Take Its Stock Higher
• Positive Sentiment: Additional bullish commentary from analyst Dan Ives, who named Palantir among his top technology picks for the expected multitrillion-dollar AI spending cycle, added to positive momentum ahead of the company’s next earnings report. Dan Ives Thinks AI Buildout Is Still in Early Stages
• Neutral Sentiment: Palantir’s strong revenue growth, profitability and government-contract activity continue to support the investment case. However, the stock is trading near its 52-week high with a very elevated earnings multiple, leaving investors focused on whether growth can justify the valuation.
• Negative Sentiment: Zacks Research lowered its rating from Strong Buy to Hold, while some coverage continues to warn that the valuation may already reflect much of the company’s AI success. Palantir Technologies Stock Dropped to Hold by Zacks Research
• Negative Sentiment: Reported insider activity has been heavily weighted toward sales, and investor Michael Burry has taken longer-dated bearish positions on Palantir and other AI leaders. These signals may intensify concerns about profit-taking and an eventual slowdown in AI spending.

About Palantir Technologies

Palantir Technologies Inc (NASDAQ: PLTR) develops software platforms that help organizations integrate, analyze and act on large and complex datasets. Its principal platforms include Gotham, which is designed primarily for government and defense applications; Foundry, which supports commercial and institutional data operations; Apollo, which helps deploy and manage software across diverse environments; and the Artificial Intelligence Platform (AIP), which connects large language models and other AI tools with an organization’s data and workflows.

The company serves government agencies, defense and intelligence organizations, and commercial businesses in industries such as manufacturing, healthcare, energy and financial services.