Palantir Technologies Inc . (NYSE:PLTR) has recently divested a portion of its holdings in MSP Recovery, Inc. (NASDAQ:LIFW), according to a recent SEC filing. The filing details three separate transactions that took place over the course of three days.
On November 4, 2024, Palantir sold 111,760 shares of MSP Recovery at an average price of $0.1011 per share. The sales were conducted at prices ranging from $0.097 to $0.1055. Following this transaction, Palantir retained 3,831,977 shares.
The following day, November 5, Palantir sold an additional 340,300 shares at an average price of $0.1097, with individual sales prices ranging from $0.10 to $0.1185. This reduced Palantir's holdings to 3,491,677 shares.
The final transaction occurred on November 6, when Palantir offloaded 506,296 shares at an average price of $0.1298. The sales prices for this batch ranged from $0.1035 to $0.1638, leaving Palantir with 2,985,381 shares in MSP Recovery.
In total, Palantir's sales amounted to $114,347, with the transactions reflecting a price range between $0.1011 and $0.1298 per share. These sales continue to adjust Palantir's investment position in MSP Recovery.
In other recent news, MSP Recovery, Inc. has disclosed a series of strategic financial maneuvers and operational enhancements. The company has issued new warrants to Virage Recovery Master LP as part of an ongoing agreement, fulfilling obligations under an amended transaction agreement. MSP Recovery also acquired recovery rights to a portfolio of Medicare Secondary Payer claims exceeding $10.6 billion from Hazel Partners Holdings LLC, marking a significant expansion of its claims recovery operations.
In a move to adjust its capital structure, the company's Board of Directors has been authorized to implement a reverse stock split of its common stock. Furthermore, MSP Recovery has secured a significant agreement modification with Virage Recovery Master LP, waiving a clause that could have expedited payment under certain conditions, providing the company with increased financial flexibility.
The company also issued a substantial number of shares to investment firm Yorkville, part of a broader strategy to finance its growth. Simultaneously, LifeWallet, affiliated with MSP Recovery, achieved a comprehensive settlement with a group of property and casualty insurers and completed the first version of its clearinghouse solution, developed in partnership with Palantir Technologies. These are the recent developments for MSP Recovery and its affiliate, LifeWallet.
InvestingPro Insights
The recent divestment by Palantir Technologies of its MSP Recovery shares aligns with several key indicators from InvestingPro. MSP Recovery's stock has experienced significant volatility, as evidenced by its 17.76% return over the last week, contrasted with a substantial 61.17% decline over the past three months. This volatility is further underscored by the stock's current price being only 1.07% of its 52-week high.
InvestingPro Tips highlight that MSP Recovery is "trading at a low Price / Book multiple" of 0.07, which could explain Palantir's decision to sell at this juncture. Additionally, the company is "quickly burning through cash" and has "short term obligations exceed[ing] liquid assets," factors that may have influenced Palantir's divestment strategy.
The company's financial health appears precarious, with a market cap of just $17.98 million and a negative operating income of $543.85 million for the last twelve months as of Q2 2024. This is reflected in the InvestingPro Tip noting that MSP Recovery is "not profitable over the last twelve months."
For investors seeking a more comprehensive analysis, InvestingPro offers 18 additional tips for MSP Recovery, providing deeper insights into the company's financial position and market performance.
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