Zacks Research Downgrades Palantir Technologies (NASDAQ:PLTR) to Hold

Palantir Technologies (NASDAQ:PLTR) was downgraded by analysts at Zacks Research from a “strong-buy” rating to a “hold” rating in a research note issued to investors on Tuesday, Zacks reports.

A number of other equities research analysts have also weighed in on PLTR. Wolfe Research began coverage on shares of Palantir Technologies in a report on Tuesday, August 4th. They issued a “buy” rating on the stock. DA Davidson boosted their price objective on Palantir Technologies from $200.00 to $250.00 and gave the stock a “buy” rating in a report on Friday, September 11th. Oppenheimer downgraded Palantir Technologies from an “outperform” rating to a “market perform” rating in a research note on Tuesday, August 4th. Citigroup downgraded Palantir Technologies from a “buy” rating to a “market perform” rating in a research note on Tuesday, August 4th. Finally, Wedbush began coverage on Palantir Technologies in a report on Tuesday, June 16th. They issued an “outperform” rating on the stock. One investment analyst has rated the stock with a Strong Buy rating, twenty-one have given a Buy rating, eleven have issued a Hold rating and three have assigned a Sell rating to the stock. According to MarketBeat.com, the company has a consensus rating of “Moderate Buy” and a consensus price target of $195.33.

Palantir Technologies Stock Up 1.1%

Shares of NASDAQ:PLTR opened at $194.12 on Tuesday. Palantir Technologies has a twelve month low of $106.37 and a twelve month high of $207.52. The stock’s 50 day moving average is $174.75 and its 200-day moving average is $149.54. The firm has a market capitalization of $466.48 billion, a price-to-earnings ratio of 165.91, a PEG ratio of 2.70 and a beta of 1.60.

Palantir Technologies (NASDAQ:PLTR) last posted its quarterly earnings results on Monday, August 3rd. The company reported $0.41 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.34 by $0.07. Palantir Technologies had a net margin of 49.01% and a return on equity of 30.57%. The business had revenue of $1.94 billion during the quarter, compared to the consensus estimate of $1.81 billion. During the same quarter last year, the firm posted $0.16 EPS. Palantir Technologies’s revenue was up 92.8% compared to the same quarter last year. Equities research analysts anticipate that Palantir Technologies will post 1.28 earnings per share for the current fiscal year.

Insider Activity at Palantir Technologies

In other news, insider Alexander Karp sold 492,348 shares of the firm’s stock in a transaction that occurred on Thursday, August 20th. The shares were sold at an average price of $174.79, for a total transaction of $86,057,506.92. Following the completion of the sale, the insider owned 6,432,258 shares in the company, valued at $1,124,294,375.82. This trade represents a 7.11% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, Director Lauren Friedman Stat sold 3,032 shares of Palantir Technologies stock in a transaction that occurred on Wednesday, August 5th. The stock was sold at an average price of $165.00, for a total transaction of $500,280.00. Following the completion of the sale, the director directly owned 54,107 shares in the company, valued at $8,927,655. This trade represents a 5.31% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 536,364 shares of company stock valued at $93,083,303 over the last quarter. 9.53% of the stock is currently owned by insiders.

Institutional Trading of Palantir Technologies

Hedge funds have recently made changes to their positions in the company. Guardian Wealth Advisors LLC NC boosted its holdings in shares of Palantir Technologies by 67.5% in the 2nd quarter. Guardian Wealth Advisors LLC NC now owns 10,627 shares of the company’s stock worth $1,240,000 after purchasing an additional 4,283 shares during the period. Independent Financial Group LLC raised its holdings in Palantir Technologies by 20.8% during the 2nd quarter. Independent Financial Group LLC now owns 188,200 shares of the company’s stock valued at $21,957,000 after buying an additional 32,427 shares during the period. World Equity Group Inc. raised its holdings in Palantir Technologies by 7.2% during the 2nd quarter. World Equity Group Inc. now owns 43,627 shares of the company’s stock valued at $5,090,000 after buying an additional 2,948 shares during the period. Sage Capital Advisors llc lifted its position in Palantir Technologies by 63.5% in the second quarter. Sage Capital Advisors llc now owns 66,944 shares of the company’s stock worth $7,810,000 after buying an additional 25,995 shares during the last quarter. Finally, V. M. Manning & CO. Inc. bought a new stake in Palantir Technologies in the second quarter worth $539,000. 45.65% of the stock is currently owned by institutional investors.

Palantir Technologies News Summary

Here are the key news stories impacting Palantir Technologies this week:

• Positive Sentiment: Veteran technology analyst Dan Ives named Palantir one of his top AI picks alongside Nvidia, Microsoft, Apple and CrowdStrike, arguing that a projected $4 trillion AI-spending cycle is still in its early stages. Dan Ives AI Picks
• Positive Sentiment: Palantir is expanding its sovereign AI strategy by pairing its Sovereign AI Operating System with Armada’s modular data centers, potentially helping customers operate AI systems with greater control over infrastructure and model weights. Palantir Sovereign AI Partnership
• Positive Sentiment: Recent coverage remains broadly constructive, citing Palantir’s strong profitability, roughly 93% quarterly revenue growth, repeated earnings beats and partnerships with major AI companies. Analysts and commentators also continue to favor PLTR over some competing AI-data stocks. Wall Street Analyst Sentiment
• Neutral Sentiment: Investors are focusing on the operating metric that will determine whether Palantir can sustain its premium multiple: continued growth and profitability without a significant increase in costs. The company’s next results will be important for confirming that momentum remains intact. Metric That Could Affect Palantir
• Negative Sentiment: Valuation remains the principal risk. With PLTR trading near $194 and at an exceptionally high earnings multiple, even modestly slower growth or rising expenses could trigger a sharp reassessment. Palantir Valuation Analysis
• Negative Sentiment: Investor Michael Burry reportedly expressed a more bearish view by using longer-dated put options on Palantir and other AI leaders, while a director’s sale of 1,337 shares under a pre-arranged Rule 10b5-1 plan adds a modest negative headline. Burry Bearish AI Position

About Palantir Technologies

Palantir Technologies Inc (NASDAQ: PLTR) develops software platforms that help organizations integrate, analyze and act on large and complex datasets. Its principal platforms include Gotham, which is designed primarily for government and defense applications; Foundry, which supports commercial and institutional data operations; Apollo, which helps deploy and manage software across diverse environments; and the Artificial Intelligence Platform (AIP), which connects large language models and other AI tools with an organization’s data and workflows.

The company serves government agencies, defense and intelligence organizations, and commercial businesses in industries such as manufacturing, healthcare, energy and financial services.