Palantir Technologies Inc . (NYSE:PLTR) co-founder and board member, Peter Thiel, has executed a series of large stock sales, divesting over $597 million worth of the company's shares. These transactions occurred over several days, with prices per share ranging between $36.7702 and $37.6466.
The sales, detailed in a recent SEC filing, report Thiel selling a total of 7,214,637 shares on September 24 at a weighted average price of $36.8567 per share. On the same day, he sold an additional 147,610 shares at an average of $37.6466 each. The selling spree continued on September 25, with 4,254,666 shares sold at an average of $36.7702 per share, and on September 26, Thiel parted with 4,561,502 shares at an average price of $37.0694.
Following these transactions, Thiel's remaining holdings in Palantir are substantial, including direct and indirect ownership through entities such as Rivendell 7 LLC, STS Holdings II LLC, PLTR Holdings LLC, and Rivendell 25 LLC. The SEC filing indicates that Thiel maintains beneficial ownership over the securities held by these entities.
The sales were made according to a preexisting Rule 10b5-1 trading plan, which allows company insiders to sell stocks at predetermined times to avoid accusations of insider trading. This plan was adopted by Thiel on May 15, 2024, well in advance of the actual transactions.
Investors often keep a close eye on insider trading patterns for hints about a company's prospects. The transactions by Thiel represent a significant change in his investment in Palantir, although they do not necessarily reflect a shift in the company's outlook as they were scheduled in advance.
Palantir, known for its data analytics solutions, has been a subject of investor interest since its public listing. The company's stock performance and insider transactions such as these are closely monitored for insights into the company's valuation and the confidence of its key executives.
In other recent news, Palantir Technologies Inc. has been the focus of several significant developments. The company's Q2 FY2024 earnings saw a 27% YoY increase, hitting $678.1 million in revenue, prompting an upward revision of its full-year revenue guidance to $2.746 billion. Analysts from Wedbush, BofA Securities, and Citi have weighed in on Palantir's performance, with Wedbush reiterating an Outperform rating and increasing the price target to $45, while BofA Securities maintained a Buy rating, and Citi reaffirmed a Neutral rating.
In terms of contracts, Palantir secured a significant $99.8 million military AI contract expansion from the DEVCOM Army Research Laboratory, extending the capabilities of its Maven Smart System across various U.S. military branches. In addition, Palantir announced a multi-year contract with Nebraska Medicine to implement its Artificial Intelligence Platform (AIP), which has already led to improvements in healthcare operations and patient care.
The company has also been recognized for its achievements in the field of artificial intelligence (AI) and machine learning (ML), earning top marks in the 2024 Wisdom of Crowds® Market Study by Dresner Advisory Services. Lastly, Palantir announced a collaboration with Wendy’s Quality Supply Chain Co-op, Inc. to integrate AI into its operations. These are the recent developments for Palantir Technologies Inc.
InvestingPro Insights
As investors digest the news of Peter Thiel's substantial stock sales in Palantir Technologies Inc. (NYSE:PLTR), it's worth considering the company's financial health and market performance. Palantir holds more cash than debt on its balance sheet, which suggests a strong financial position that could weather market fluctuations and invest in growth opportunities. This is a reassuring signal for investors concerned about the company's ability to sustain its operations and fund future initiatives.
Moreover, Palantir's net income is expected to grow this year, indicating a positive trajectory for the company's profitability. This expected growth can be attributed to Palantir's robust gross profit margins, which stand at an impressive 81.39% for the last twelve months as of Q2 2024. Such high margins reflect the company's efficiency in managing its cost of goods sold and its ability to retain a significant portion of revenue as gross profit.
In addition to these insights, the company's stock has experienced a notable uptick, with a year-to-date price total return of 116.07% and a 1-year price total return of 149.83%. This strong market performance underscores investor confidence and the stock's potential for those looking for robust returns. It's also worth noting that Palantir's stock is trading near its 52-week high, at 97.09% of the peak price, which could signal investor optimism about the company's future prospects.
For those seeking further guidance, there are additional InvestingPro Tips available for Palantir, providing a deeper analysis of the company's financials and market performance. These tips can be found at InvestingPro, where 23 more tips are listed to help investors make informed decisions.
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