TLDR
- Palantir CEO Alexander Karp sold $66 million in stock on November 20-21, part of $162 million in total insider sales
- Four other executives also sold shares, with President Stephen Cohen offloading $56.73 million
- PLTR stock trades at 360x trailing earnings with a market cap near $370 billion
- Shares down 25% from November peak of $207 after Michael Burry revealed bearish position
- Stock has a Hold rating with analysts setting average price target at $187.87
Palantir Technologies insiders just completed one of the biggest selling sprees in recent memory. CEO Alexander Karp dumped $66 million worth of shares over two days in late November.
But he wasn’t alone. President and Secretary Stephen Cohen sold shares worth $56.73 million. CFO David Glazer offloaded $2.86 million while Chief Revenue Officer Ryan Taylor sold $9.12 million.
Palantir Technologies Inc., PLTR
CTO Shyam Sankar rounded out the group with $27.55 million in sales. Combined, these five executives sold nearly $162 million in PLTR stock.
Most transactions were pre-planned under Rule 10b5-1 plans. These allow insiders to set up scheduled sales in advance.
The timing has spooked retail investors. Palantir’s stock has dropped 14% over the past month despite being up 114% year-to-date.
Valuation Concerns Mount
The stock peaked near $207 in early November 2025. It has since fallen roughly 25% as investors take profits and question AI valuations.
PLTR now trades at a price-to-earnings ratio of 362x. That’s well above the sector median and the company’s five-year average.
At current levels around $155 per share, Palantir sports a market cap near $370 billion. The company trades at over 100 times sales and 153 times forward earnings.
Using the price-earnings-to-growth ratio, Palantir sits at 4.2x. That’s based on expected earnings growth of 36.8% in 2026.
Famous investor Peter Lynch typically avoided stocks with PEG ratios above 1.0. Palantir’s ratio is more than four times that threshold.
The Michael Burry Factor
The sell-off accelerated after “Big Short” investor Michael Burry disclosed a bearish put position against PLTR. His bet against the stock is worth millions.
Burry has criticized AI companies for their accounting practices. He specifically targets how they handle hardware depreciation and profit calculations.
His track record of accurate predictions has amplified investor concerns. Some now worry about an AI bubble bursting.
One analysis suggests Palantir would need to grow revenues by 1,500% over 25 years to justify its current valuation. That would require sustained annual revenue growth of 35% for a quarter century.
The larger a company gets, the harder maintaining high growth rates becomes. Palantir’s $370 billion market cap now exceeds many established blue-chip stocks.
Analysts remain cautious on the stock. TipRanks shows a Hold consensus rating based on three Buy ratings, 11 Hold ratings, and two Sell ratings.
The average price target sits at $187.87, implying 15.8% upside from current levels. However, that target still represents a slight discount to recent highs.
The company has shifted from primarily serving government contracts to expanding AI-driven platforms for commercial use. Its software combines data from different sources to provide AI-powered insights.
The recent insider sales totaled $162 million across five executives, with most transactions occurring through pre-planned arrangements in late November.
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