Insiders at American software giant Palantir (NASDAQ: PLTR) are increasingly offloading shares, even as the stock surges amid a wave of lucrative government contracts.
In the most recent transaction, Shyam Sankar, Palantir’s Chief Technology Officer and Executive Vice President, filed on June 10 to sell 405,000 shares of PLTR common stock. Based on an average price of $132.07 per share, the estimated total value of the sale is $53.49 million.
The sale, executed through UBS Financial Services, involved shares acquired years earlier, 30,000 from vested restricted stock units (RSUs) dated May 20, 2020, and 375,000 from stock options exercised on May 21, 2020. The RSUs, granted as compensation, required no payment upon vesting, while the stock options were purchased with cash at the time of exercise.
Palantir’s accelerated insider stock sales
Sankar joins a growing list of Palantir executives selling their stakes. As reported by Finbild, director Alexander Moore sold 80,000 shares on June 6 for approximately $9.6 million, averaging $119.91 per share. He had previously sold 20,000 shares on April 1 for $1.68 million.
In late May alone, executives unloaded more than $124 million in stock, including $50 million by CEO Alex Karp and $43 million by Executive Vice President Stephen Andrew.
While insider selling isn’t unusual, the size and timing of these transactions, especially from top-level executives, are drawing scrutiny.
Some Wall Street analysts remain cautious about PLTR, viewing the insider activity as a possible signal of waning confidence. Additionally, despite strong growth in government contracts, Palantir’s high valuation continues to be a concern.
PLTR’s growth fundamentals
On that front, Palantir has made notable progress. The U.S. Department of Defense recently extended its Project Maven contract to more than $1.3 billion, highlighting the company’s pivotal role in military AI integration. Further, NATO’s adoption of Maven marked a notable global endorsement of Palantir’s technology.
Meanwhile, PLTR closed the last trading session at $132, up 0.57% on the day. Year-to-date, the stock has rallied 76%.
Looking ahead, however, forecasts remain mixed. According to TipRanks, a consensus of 18 Wall Street analysts expects PLTR stock to decline 23% over the next 12 months, targeting a price of $101.
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