The technology giant Palantir (NYSE: PLTR) has been on a strong uptrend through much of September, driven by both its prominent involvement in the artificial intelligence (AI) boom, and the recent inclusion in the S&P 500 index.
Such a rally has also been accompanied by a deluge of massive insider sales, with Palantir CEO Alex Karp’s recent stock sales being noted as particularly large.
Nonetheless, they were, in late September, dwarfed by the activity of the firm’s founder and chairman, Peter Thiel. Indeed, Thiel has, over the last three days, offloaded more than 16 million shares worth approximately $600 million.
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The most recent sales, once tallied with March and May trades, bring the total value of Thiel’s 2024 PLTR stock sales over $1 billion, per a Bloomberg report published on September 26.
Should investors be concerned by the massive insider sales?
The massive trades are part of scheduled sales plans, introduced by Palantir in December, 2023. The original plan, when unveiled, called for Thiel to sell 20 million shares, and the subsequent one for another 28 million.
Such a schedule means Thiel will likely sell at least another 12 million PLTR shares in 2024.
Simultaneously, the existence of the plan indicates that investors can be less wary of significant insider activity, as it is not likely that it is a result of a drop in confidence among Palantir’s leadership.
Still, it is noteworthy that Thiel and Karp are not the only senior officers of the technology firm engaged in significant stock sales, as Finbold reported on September 20.
For example, directors Lauren Friedman Stat and Alexander Moore, as well as senior executives and officers Heather Planishek and Ryan Taylor, all sold between 6,000 and 155,000 shares since September 9.
What is next for Palantir stock?
Finally, despite the bullish momentum that enabled PLTR stock to climb 23.26% in the last 30 days to Palantir’s price today, at press time, of $36.88, things may not be rosy for much longer.
Indeed, the string of positive developments has not deterred a number of Wall Street excerpts from turning sour on the stock.
Many of the more bearish analysts point toward Palantir’s generally strong 125.48% rise in 2024 and argue that, for the time being, the stock has decisively moved into ‘overbought’ territory.
Such a conclusion is further corroborated by technical analysis (TA) indicators such as the relative strength index (RSI) and the 200-day SMA (simple moving average).
Still, PLTR shares are not entirely bereft of bulls.
Bank of America (NYSE: BAC) recently set the Street’s high 12-month price target for the technology giant – $50 – arguing that underestimating its potential is akin to XX century’s underestimates of the XXI century growth of the smartphone market.
Wedbush’s Dan Ives, likewise, expressed his bullishness on September 25, stating the enterprise-driven AIP strategy is a ‘game changer’ and forecasting PLTR shares will climb to $45 in the coming 52 weeks.
