Shares of Palantir (NASDAQ: PLTR), the big data analytics and AI infrastructure leader, have undergone a sharp drop after a significant insider sell-off.
On Monday, the stock reached an intraday high of $79.41 before sliding to $67.64 by press time on Wednesday, raising concerns among investors.
The steep decline followed a major transaction by insider Ryan D. Taylor, who sold 483,987 shares in January 2025, earning approximately $36.05 million from the sale.
This move slashed his holdings by nearly 74%, leaving him with 170,273 shares now worth around $12.68 million.
Adding to the selling pressure, Lauren Elaina Friedman Stat, a Palantir director, sold 800 shares at $76.29, totaling $61,032. This minor transaction reduced her position by 1.27%, leaving her with 62,139 shares valued at $4.74 million.
When it rains it pours for PLTR shares
The insider sales coincided with an already cautious market mood surrounding Palantir, amplified by Morgan Stanley analyst Sanjit Singh issuing an ‘Underweight’ rating on December 6, accompanied by a $60 price target.
The downgrade signals skepticism about Palantir’s near-term growth potential amid broader market concerns about overvaluation in AI stocks.
While large insider transactions often raise questions about executive confidence, they don’t necessarily indicate internal troubles. However, combined with bearish analyst sentiment, they can influence investor psychology.
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