Palantir (NASDAQ: PLTR) reported its Q4 earnings report on February 3. In short order, the price of Palantir stock surged past $100 to reach a new all-time high (ATH) of $106.
By press time, the price of a PLTR share had further increased to $107.51 after a 5.32% gain on the daily chart.
As impressive as the string of standout earnings quarters that the Alex Karp-led venture has provided is, the data analytics company’s high valuation is still a cause for concern among Wall Street researchers.
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For one, investors who didn’t get in early enough might have missed the opportunity — at such a high premium, sustained outperformance will be necessary just to maintain these price levels. Technical analysis also points to a tendency for Palantir stock to pull back in January — if repeated, this time around, this would entail a drop to around $80 per share.
Company insiders certainly think that current price levels are ripe for profit-taking — as they have been selling large quantities of shares for months. Finbold’s insider trading radar recently detected another insider sale from a February 5 SEC Form 4 filing.
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This signal is triggered upon the reporting of the trade to the Securities and Exchange Commission (SEC).
Board member dumps $1.6 million worth of Palantir stock
On February 3, Alexander Moore, a member of the company’s board of directors and former director of operations (fun fact — also Palantir’s first employee), sold 20,000 PLTR shares. Moore made 6 transactions at prices ranging from $79.23 to $84.02. In total, his sale of Palantir stock netted him roughly $1,629,103.
Following the trade, Moore continues to hold a staggering 1,410,630 PLTR shares directly. However, the sale cannot serve as a reliable bearish signal. For one, this was only a minuscule portion of the former director of operations’ stake. Secondly, all of this was planned in advance — as the liquidations were made according to a 10b5-1 plan that Moore had adopted back on November 30, 2023.
With all of that said, it’s impossible to deny that company insiders are cashing in on a wide scale. Since the beginning of the year, key personnel and board members have sold more than $40 million worth of Palantir stock — Moore is only the latest in a long line, and his sale is on the smaller side of the spectrum when compared to those of his colleagues.
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