One of the biggest standout successes over the course of 2024 has been Palantir (NYSE: PLTR), one of the premier data analytics companies in business today.
Although it has received a lot of publicity and retail investor interest during the last couple of years, institutional investors and Wall Street equity analysts alike have been rather skeptical of the stock. The biggest points of contention were Palantir’s high valuation and seeming reliance on government contracts.
At present, those worries seem to have dissipated to a large degree — although valuation and sustainability are still open questions.
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Following two standout quarters, PLTR stock has rallied rapidly, bringing year-to-date (YTD) returns up to 270.87% — leaving even Nvidia (NASDAQ: NVDA), with its 190.66% gains in the same timeframe in the dust.
PLTR shares were trading at $61.46 at press time. As more and more companies release their 13-F filings for Q3 2024, it has become apparent that hedge funds in particular have turned bullish on Palantir — upping their stakes even as the stock continues to price in significant future growth.
Institutions and funds flock to PLTR stock amid insider selling
Roughly 45.65% of Palantir is owned by institutional investors. The biggest increase in stake this quarter was seen with the Swiss National Bank. Previously, the bank held 5,629,400 PLTR shares — in Q3, it bought an additional 381,500, thereby increasing its stake by 6.8%. It now holds 6,010,900 PLTR stocks, worth roughly $369,429,914.
Elsewhere, Aljian Capital Management opened a long position — with its first purchase totaling 41,918 PLTR shares, worth approximately $2,576,280 at the time of publication.
In much the same way, Thrivent Financial increased its stake — although it seems to be the most bullish institution this quarter. The non-profit financial services organization had held 52,732 PLTR shares thus far — in Q3, it purchased an additional 38,924, increasing its stake by 73.8%.
Concurrently with this, Palantir CEO Alex Karp has been steadily offloading the stock — most recently, on November 13, he sold 6,323,602 shares worth roughly $398 million. However, this shouldn’t be taken as a bearish signal — the trade was made pursuant to a 10b5-1 plan adopted months ago, and Karp still holds 107,676,398 Palantir stocks.
While this is certainly a vote of confidence, PLTR is currently trading at a forward price-to-earnings (P/E) ratio of 144 — with so much growth already priced in, current prices might not present a viable entry point for retail investors.
Featured image via Shutterstock
