Palantir Technologies (PLTR) Surges as Institutional Investors Adjust Positions and Analysts Revise Ratings
Palantir Technologies Inc. (NASDAQ: PLTR) has been making waves in the stock market, with its shares climbing 9.8% and hitting a 52-week high of $111.55. This surge comes amid increased institutional activity, insider transactions, and analyst rating adjustments.
Institutional Investors Reshuffle Holdings in Palantir
Archer Investment Corp recently reduced its stake in PLTR by 17.2%, selling 312 shares during Q4, leaving its total holdings at 1,500 shares worth $113,000. However, other major institutional investors have significantly increased their positions:
- State Street Corp grew its holdings by 96.4%, now owning 82.5 million shares worth $3.07 billion after adding 40.5 million shares in Q3.
- Geode Capital Management LLC increased its stake by 52.9%, now holding 47.9 million shares valued at $1.77 billion after purchasing 16.6 million additional shares.
- Sumitomo Mitsui Trust Group Inc. boosted its position by 5.7%, owning 14.98 million shares worth $557.3 million after acquiring 808,444 shares.
- FMR LLC and Charles Schwab Investment Management Inc. also increased their stakes, highlighting growing institutional confidence in the company’s long-term potential.
Currently, 45.65% of Palantir’s stock is owned by hedge funds and institutional investors, reflecting strong market interest despite volatility.
Insider Transactions: Executives Reduce Holdings
Recent filings show notable insider transactions, with Director Lauren Elaina Friedman Stat selling 9,746 shares at an average price of $66.77, reducing their ownership by 8.03%. Additionally, CEO Alexander C. Karp sold 38,093 shares at an average price of $63.01, trimming his position by 0.59%.
Over the past three months, company insiders have sold a staggering 15.65 million shares, totaling approximately $1.04 billion, signaling a shift in insider sentiment despite the stock’s strong upward momentum.
Analyst Ratings: Mixed Sentiment for Palantir Stock
Equities analysts remain divided on Palantir Technologies, with recent upgrades and downgrades reflecting market uncertainty:
- Baird R W upgraded PLTR to a “Hold” on December 12.
- Cantor Fitzgerald raised its price target from $72 to $98, maintaining a “Neutral” stance.
- Argus downgraded the stock from “Buy” to “Hold” on November 7.
- Bank of America issued a bullish call, increasing its target from $90 to $125, reiterating a “Buy” rating.
- Wedbush raised its price target from $75 to $90, assigning an “Outperform” rating.
Despite these shifts, six analysts rate the stock a “Sell,” twelve maintain a “Hold,” and three label it a “Buy”, resulting in an overall “Hold” consensus and a target price of $69.44.
Financial Performance: Palantir Reports Strong Revenue Growth
Palantir’s latest earnings report (Q3 2024) showed $725.52 million in revenue, surpassing analyst expectations of $705.11 million. The company reported $0.10 earnings per share (EPS), beating estimates by $0.01, while also achieving a 30% YoY revenue increase.
- Net Margin: 18.01%
- Return on Equity (ROE): 9.94%
- Market Cap: $253.50 billion
- Price-to-Earnings (P/E) Ratio: 556.43
Stock Performance and Outlook
Palantir’s stock has experienced an explosive rally, with its 50-day moving average at $76.46 and 200-day moving average at $52.67. With a beta of 2.81, the stock remains highly volatile, but institutional accumulation, strong revenue growth, and increasing demand for AI-driven analytics have fueled investor optimism.
As the AI and data analytics sector continues expanding, all eyes are on Palantir’s next earnings report and its ability to sustain its impressive momentum.
