Palantir Technologies (NASDAQ: PLTR) has been on a volatile ride, with its stock showing significant parabolic growth. However, macroeconomic concerns and insider selling activity raise fresh questions about its future trajectory.
Stephen Andrew Cohen’s Large PLTR Stock Sale
Stephen Andrew Cohen, a co-founder and key executive of Palantir, recently executed a massive sale of PLTR shares, reducing his stake to almost nothing. His transactions spanned March 12-14, totaling 3.75 million shares in sales:
- March 12: Sold 1.25 million shares at prices between $79.92 and $84.52, generating over $103 million in gross proceeds.
- March 13: Sold 1.25 million shares at prices between $78.37 and $83.70.
- March 14: Sold 1.25 million shares at prices between $82.27 and $87.23.
Following these sales, Cohen now holds just 592 shares of Class A Common Stock, effectively marking a complete exit from his original stake in Palantir.
Implications of Insider Selling on PLTR Stock
Cohen’s exit isn’t the only insider activity raising concerns. Palantir’s CEO has liquidated nearly $2 billion worth of PLTR stock since the beginning of 2024 under structured trading plans. His December 11, 2024 trading plan enables him to sell up to 9.975 million shares through September 12, 2025. The ongoing high-volume insider selling could have a negative impact on PLTR’s stock as it adds to concerns about overvaluation.
PLTR’s Overvaluation Concerns and Price Target
Despite its strong growth, Palantir remains fundamentally overvalued, with inflated PE and PS ratios. Analysts warn that insider selling and valuation risks could lead to a correction. The consensus price target for PLTR is $74.45, implying a 13.67% downside from current levels.
Investors are closely watching macroeconomic trends and insider trading activities to gauge whether PLTR can sustain its momentum or face a valuation reset. Stay tuned for more updates on Palantir’s stock movements and insider transactions.
