Alexander C. Karp, CEO of Palantir Technologies Inc . (NYSE:PLTR), has recently sold a significant portion of his holdings in the company. According to a recent SEC filing, Karp sold shares over three days, totaling approximately $254 million.
The sales were executed as part of a preexisting Rule 10b5-1 trading plan, which allows insiders to sell a predetermined number of shares at set times. On October 25, Karp sold 1,706,841 shares at an average price of $45.0062, generating around $76.8 million. This was followed by a sale of 3,337,048 shares on October 28, at an average price of $45.0168, totaling about $150.2 million. Finally, on October 29, he sold 612,404 shares at an average price of $45.0177, amounting to approximately $27.6 million.
These transactions were part of a strategy to exercise and convert vested Class B Common Stock options into Class A Common Stock, which were then sold in the open market. Despite these sales, Karp continues to hold a substantial number of shares in the company.
In other recent news, Palantir Technologies Inc. has seen significant developments, starting with its Q2 2024 earnings, which saw a 27% YoY increase, totaling $678.1 million in revenue. This strong performance led Palantir to revise its full-year revenue guidance upwards to $2.746 billion. The company also secured a $99.8 million military AI contract expansion from the DEVCOM Army Research Laboratory.
In terms of analyst ratings, while Raymond James downgraded Palantir from Outperform to Market Perform, BofA Securities maintained a Buy rating, and Citi reaffirmed a Neutral rating. Meanwhile, Canaccord Genuity (TSX:CF) maintained its Hold rating on Surf Air Mobility Inc, noting that Palantir received approximately 1.3 million additional shares of Surf Air Mobility's common stock, increasing Palantir's ownership in the company to about 18.5%.
Palantir has also made strides in AI, partnering with Edgescale AI Inc. to launch Live Edge, aimed at enabling practical AI application in sectors such as manufacturing and utilities. The company was recognized for its achievements in AI and machine learning, earning top marks in the 2024 Wisdom of Crowds® Market Study by Dresner Advisory Services.
Lastly, Storebrand Asset Management, a Nordic investor, has exited Palantir due to potential risks of violating international humanitarian laws and human rights, related to Palantir's business dealings with Israel. The asset manager, overseeing approximately $91.53 billion in assets, previously held about $24 million worth of Palantir shares.
InvestingPro Insights
Palantir Technologies Inc. (NYSE:PLTR) has been experiencing significant market attention, as reflected in its recent stock performance and financial metrics. According to InvestingPro data, Palantir's market capitalization stands at an impressive $100.69 billion, indicating strong investor confidence in the company's future prospects.
The company's revenue growth remains robust, with a 27.15% increase in the most recent quarter. This growth trajectory aligns with an InvestingPro Tip suggesting that net income is expected to grow this year. Additionally, Palantir boasts impressive gross profit margins of 81.39%, which is another positive indicator highlighted by InvestingPro Tips.
Despite CEO Alexander C. Karp's recent stock sales, the market sentiment towards Palantir remains bullish. The stock's price has shown remarkable strength, with a 205.85% total return over the past year and a 70.38% return in the last three months. This performance is particularly noteworthy given that the stock is trading near its 52-week high, with its current price at 99.53% of that peak.
However, investors should be aware that Palantir's P/E ratio stands at a lofty 244.51, suggesting a high valuation relative to current earnings. This is balanced by a PEG ratio of 0.3, which may indicate that the stock is potentially undervalued when considering its expected growth rate.
For those interested in a deeper analysis, InvestingPro offers 23 additional tips on Palantir, providing a comprehensive view of the company's financial health and market position. These insights can be particularly valuable for investors looking to understand the full picture beyond the recent insider selling activity.
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