The ongoing artificial intelligence revolution is poised to transform entire industries — in tandem, it has been one of the dominant narratives in financial markets for the past two years. The promise of automation and greater efficiency has spurred a flurry of investments.
It’s relatively straightforward to chart how, for example, semiconductor companies like Nvidia (NASDAQ: NVDA) have benefitted. Palantir (NASDAQ: PLTR) was somewhat of a dark horse in this race. The business operates primarily in data analytics and AI infrastructure — areas that are less front and center and apparent.
But the figures proved to be too much to ignore. For a long time, Palantir stock was a retail investor favorite — in contrast, institutional investors were largely skeptical. However, the tide has turned — after a string of outstanding earnings releases, hedge funds are now going all in on PLTR stock.
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At press time, a single Palantir share was trading at $75.27 after an 8.12% surge over the last week, which brought year-to-date (YTD) gains up to a staggering 343.46%.
The stock’s recent inclusion in the NASDAQ-100 index has brought about a new wave of bullish sentiment — but at the same time, insider selling only seems to be accelerating. As we draw closer to the end of 2024, one C-suite executive at the company has decided to dump millions of dollars worth of Palantir stock.
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CFO sells $27 million in Palantir stock
On December 12, David A. Glazer, the chief financial officer (CFO) and treasurer of Palantir executed 5 transactions — four of which were sales, according to data retrieved by Finbold’s insider trading radar from an SEC filing made public on December 16.
In total, Glazer sold 315,126 Palantir shares at prices ranging from $72.62 to $75.18. The total value of his transactions was roughly $23,097,420.
However, the CFO’s stake in the company remains unchanged, seeing as he also executed stock options to acquire exactly 315,126 Palantir shares, for $4.72 per unit of ownership. Interestingly enough, the options had an expiration date of June 6, 2030.
This options trade set Glazer back roughly $1,487,394 — leaving him with a tidy profit of $21,610,026. He still holds 293,411 shares, and as this sale was done according to a prescheduled 10b5-1 trading plan adopted on September 12, it can’t serve as a reliable bearish signal.
Readers should note that Palantir remains a risky play — the current rally is showing signs of exhaustion, and as PLTR stock continues to hit new all-time highs, it’s only a matter of time before a correction to the downside occurs.
Featured image via Shutterstock
