A key company insider and member of the board of directors has just sold off a portion of his Palantir stock (NASDAQ: PLTR) holdings.
Finbold’s insider trading radar has just picked up an SEC Form 4 filing from April 3. It reveals that Alexander Moore, the data analytics company’s former director of operations and first employee, made a significant sale.
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This signal is triggered upon the reporting of the trade to the Securities and Exchange Commission (SEC).
To be more precise, Moore executed 4 sell transactions on April 1. These sales took place at prices ranging from $82.72 to $85.18 per Palantir share. All in all, the insider sold 20,000 units of Palantir stock. The trade is estimated to have been worth $1,676,580.
With the sale concluded, the insider continues to hold 1,370,630 PLTR shares.
Palantir stock might crash below $80 — but Moore’s sale is not a bearish signal
The data analytics company trades at an extremely high valuation, even when factoring in recent losses. At press time on April 4, Palantir stock was changing hands at $83.20, some 5.57% below its April 2 pre-tariff high. As of the time of writing, the year-to-date (YTD) gains of PLTR have eroded down to 10.01%.
Even at that price point, the company’s stock is trading at a forward price to earnings (PE) of 186.06. For the sake of reference, Nvidia stock (NASDAQ: NVDA) currently trades at a comparatively low forward PE of 26.8, leading many to conclude that it constitutes a better buying opportunity, particularly in worrisome macro conditions.
Therefore, it comes as little surprise that Palantir stock is still a favored target of short-sellers, whose pressure, combined with the recent bearish sentiment that has taken hold of the markets, could easily see PLTR go below $80 a share. Rather large speculative bets on the share price dropping by April 25 are also being made using stock options
With that being said, Moore’s sale, on its own, does not represent a bearish signal. The trades were prearranged in accordance with a 10b5-1 plan — Moore tends to dump roughly 20,000 units of Palantir stock in the first week of each month, as evidenced by earlier sales in March and February.
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