Palantir Technologies (NASDAQ:PLTR) Stock Falls 1.6% – Time to Sell?

Palantir Technologies Inc. (NASDAQ:PLTR) shares dropped 1.6% during trading on Tuesday. The stock traded as low as $165.25 and last traded at $175.40. 52,457,923 shares were traded during trading, an increase of 27% from the average session volume of 41,322,871 shares. The stock had previously closed at $178.34.

Palantir Technologies News Summary

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

• Positive Sentiment: Palantir reported revenue of $2.31 billion, up about 96% year over year, and adjusted EPS of $0.44, beating analyst estimates. U.S. commercial revenue surged 148%, and the company raised its full-year outlook, underscoring strong demand for its AI software. Palantir’s third-quarter results
• Positive Sentiment: Some investors and analysts remain constructive: ARK Invest bought Palantir shares during the selloff, and several research firms have maintained Buy ratings or raised price targets. ARK Invest purchases Palantir shares
• Negative Sentiment: Strong revenue growth has not eased concerns about future deal momentum. Reports cite slower contract-growth metrics, including a sharp quarter-over-quarter slowdown in total contract value growth, prompting questions about whether new bookings can sustain the pace of sales. Contract growth and spending concerns
• Negative Sentiment: Palantir’s premium valuation leaves little room for disappointment, and investors are taking profits in high-flying AI and software shares. The selloff is also tied to election-related concerns that a Democratic-controlled Congress could curb the proposed defense budget, creating uncertainty for government-focused business. Election and sector pressures

Analysts Set New Price Targets

A number of equities research analysts have issued reports on PLTR shares. Deutsche Bank Aktiengesellschaft reaffirmed a “buy” rating and issued a $225.00 price target on shares of Palantir Technologies in a research report on Monday, October 26th. Morgan Stanley boosted their price objective on Palantir Technologies from $205.00 to $233.00 and gave the stock a “buy” rating in a research report on Tuesday. Needham & Company LLC set a $215.00 target price on shares of Palantir Technologies in a research note on Tuesday, August 11th. Truist Financial reaffirmed a “buy” rating and issued a $250.00 target price (up from $223.00) on shares of Palantir Technologies in a report on Tuesday. Finally, Northland Securities set a $200.00 price target on shares of Palantir Technologies in a research note on Tuesday, August 4th. One research analyst has rated the stock with a Strong Buy rating, twenty-seven have assigned a Buy rating, eight have assigned a Hold rating and three have given a Sell rating to the stock. According to data from MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and an average target price of $214.53.

Palantir Technologies Stock Down 9.7%

The company has a market cap of $372.45 billion, a PE ratio of 108.38, a price-to-earnings-growth ratio of 3.60 and a beta of 1.65. The firm has a fifty day simple moving average of $186.39 and a 200-day simple moving average of $153.78.

Palantir Technologies (NASDAQ:PLTR) last announced its earnings results on Monday, November 2nd. The company reported $0.44 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.41 by $0.03. The business had revenue of $2.31 billion for the quarter, compared to analyst estimates of $2.18 billion. Palantir Technologies had a net margin of 50.34% and a return on equity of 30.49%. The company’s revenue for the quarter was up 95.9% compared to the same quarter last year. During the same period last year, the firm posted $0.21 earnings per share. Equities research analysts forecast that Palantir Technologies Inc. will post 1.31 earnings per share for the current fiscal year.

Insider Buying and Selling at Palantir Technologies

In other Palantir Technologies news, insider Alexander C. Karp sold 492,348 shares of the company’s stock in a transaction that occurred on Thursday, August 20th. The stock was 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 of the company’s stock, valued at $1,124,294,375.82. This represents a 7.11% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at 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 1,358 shares of the stock in a transaction that occurred on Monday, November 2nd. The stock was sold at an average price of $186.29, for a total value of $252,981.82. Following the sale, the director directly owned 45,044 shares of the company’s stock, valued at $8,391,246.76. The trade was a 2.93% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last ninety days, insiders have sold 523,716 shares of company stock valued at $92,212,379. Corporate insiders own 9.53% of the company’s stock.

Institutional Inflows and Outflows

Institutional investors have recently modified their holdings of the stock. Maryland State Retirement & Pension System grew its position in Palantir Technologies by 13.1% in the third quarter. Maryland State Retirement & Pension System now owns 135,541 shares of the company’s stock valued at $25,353,000 after acquiring an additional 15,733 shares during the last quarter. UNIVEST FINANCIAL Corp raised its stake in Palantir Technologies by 8.0% during the third quarter. UNIVEST FINANCIAL Corp now owns 2,672 shares of the company’s stock worth $500,000 after acquiring an additional 198 shares in the last quarter. NBH Bank lifted its holdings in shares of Palantir Technologies by 6.2% in the third quarter. NBH Bank now owns 2,677 shares of the company’s stock worth $501,000 after acquiring an additional 157 shares during the last quarter. Joel Isaacson & Co. LLC lifted its holdings in shares of Palantir Technologies by 3.1% in the third quarter. Joel Isaacson & Co. LLC now owns 25,539 shares of the company’s stock worth $4,777,000 after acquiring an additional 779 shares during the last quarter. Finally, Jacobi Capital Management LLC lifted its holdings in shares of Palantir Technologies by 8.4% in the third quarter. Jacobi Capital Management LLC now owns 12,016 shares of the company’s stock worth $2,248,000 after acquiring an additional 929 shares during the last quarter. Institutional investors and hedge funds own 45.65% of the company’s stock.

About Palantir Technologies

Palantir Technologies Inc develops software platforms that help government agencies and commercial organizations integrate, analyze and act on data. Its products are designed to support complex operations such as defense and intelligence, supply-chain management, manufacturing, healthcare and other data-intensive activities.

Palantir’s principal platforms include Gotham, which is primarily used by government and defense customers; Foundry, which helps commercial and institutional users build data-driven workflows; Apollo, a platform for deploying and managing software across diverse environments; and the Artificial Intelligence Platform (AIP), which connects generative artificial intelligence capabilities with an organization’s data and operational systems.

Founded in 2003, the company initially focused on software for government and national-security applications before expanding into commercial markets.