There has been no shortage of positive news for the technology and cybersecurity giant Palantir (NYSE: PLTR) in recent weeks and it is perhaps precisely for that reason that the firm’s CEO, Alex Karp, executed a massive insider sale of PLTR stock on September 17.
To be precise, Karp sold 9 million shares in his company on Tuesday for approximately. $325 million, per the recent filings.
Furthermore, Alex Karp is far from the only insider to sell PLTR shares in September. Ryan Taylor, the Chief Revenue and Legal Officer, Heather Planishek, the Chief Accounting Officer, as well as directors Lauren Friedman Stat and Alexander Moore all sold between 6,000 and 155,000 shares since September 9.
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The trade came as Palantir’s stock entered a strong uptrend driven primarily by the news the firm is set for inclusion in the S&P 500. Given the famous index includes only the biggest and most established companies in the U.S., Palantir’s addition is only set to boost the visibility, liquidity, and prestige of PLTR.
Additionally, Karp’s sale came after a 20.09% increase from September lows at about $30.16 to Palantir’s stock price today of $36.22.
Palantir stock enjoys a deluge of positive developments
While the inclusion in the S&P 500 benchmark index is no small milestone, it is far from the only driver of PLTR stock’s recent rally.
Indeed, Palantir enjoys a network of global contracts and partnerships, with its new $100 million agreement to supply the U.S. armed forces with advanced artificial intelligence (AI) targeting software taking the limelight in recent weeks.
September 9 saw the renewal of another important deal: the 5-year supply of AI technology to the oil and gas giant British Petrol (LON: BP) intended to expedite decision-making through the use of large language models (LLMs) to analyze data swiftly.
Is there more room for growth for Palantir stock?
Considering the positive developments and the upward momentum that enabled PLTR shares to trade 54% above their simple moving average (SMA) by September 18, it is hardly surprising that experts and analysts see significant room for growth ahead.
On September 16, Bank of America (NYSE: BAC) set its 12-month price target for Palantir stock at $50 and emphasized the inclusion in the S&P 500 as a crucial moment for the cybersecurity giant.
Forrester Research has also expressed its bullisness and highlighted the reputation of Palantir’s AIP among vendors while also pointing toward the product’s strong data ingestion and preparation capabilities.
On the other hand, some bearish assessments may also offer a glimpse into a possible darker motivation for Karp’s massive insider sale.
Deutsche Bank’s Brad Zelnick, for example, concluded Palantir shares remain a ‘strong sell’ despite the strong results as he believes the current valuation is already reflective of the firm’s value.
Zelnick estimates the uptrend will dissipate in the coming 12 months and that PLTR stock is set for a decline to $21.
PLTR stock price chart
Whether the long-term bull or bear cases have more merit, it is hard to deny Palantir’s stellar stock market performance in 2024. Having started the year at about $16.58 and climbed to its press time price of $36.22, PLTR shares are 116.94% up year-to-date (YTD).
Recent performance has been equally strong and, even after weathering the early September stock market selloff, Palantir is 10.54% up in the last 30 days, and 2% in the latest full week of trading.
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