TLDR
- Palantir secured a three-year renewal of a major government contract, strengthening its AI and data analytics position
- Multiple Wall Street firms raised price targets, with Piper Sandler reaching $225 and DA Davidson at $215
- The company beat Q3 earnings expectations with revenue jumping 62.8% year-over-year to $1.18 billion
- Insiders sold over 1 million shares worth $164.7 million last quarter while maintaining 12.93% ownership
- Consensus rating remains Hold with an average price target of $172.28 despite strong growth metrics
Palantir Technologies shares traded higher after the company announced a three-year renewal of a major government contract. The deal reinforces Palantir’s role as a key AI and data analytics provider for public-sector clients.
Palantir Technologies Inc., PLTR
The contract renewal adds to Palantir’s long-duration revenue base. It supports investor expectations for continued growth in the company’s government segment, which has been a cornerstone of its business model.
Following strong quarterly results, multiple Wall Street firms upgraded their price targets on Palantir stock. Piper Sandler raised its target to $225 with an Overweight rating, while DA Davidson lifted its target to $215 with a Neutral stance.
Morgan Stanley increased its price target from $155 to $205 with an Equal Weight rating. HSBC also boosted its target from $181 to $197, maintaining a Hold rating on the stock.
Palantir beat analyst expectations in its most recent earnings report. The company posted earnings per share of $0.21, topping consensus estimates of $0.17 by four cents.
Revenue reached $1.18 billion for the quarter, beating expectations of $1.09 billion. That represents a 62.8% increase compared to the same quarter last year when the company earned $0.10 per share.
Institutional Activity and Insider Moves
Anchor Investment Management LLC grew its stake in Palantir by 1,296.9% during the second quarter. The firm added 6,212 shares to hold a total of 6,691 shares valued at approximately $912,000.
Several other institutional investors have adjusted their positions recently. Institutional investors and hedge funds now own 45.65% of the company’s stock.
Company insiders sold a total of 1,008,844 shares worth roughly $164.7 million in the last quarter. Insider David A. Glazer sold 1,973 shares at an average price of $156.25 on November 21st.
Ryan D. Taylor sold 36,048 shares at an average price of $162.36 on November 24th. Despite these sales, insiders still own 12.93% of the company.
Valuation and Analyst Consensus
The stock currently trades with a market capitalization of $437.53 billion. Palantir’s price-to-earnings ratio stands at 437.08, reflecting the premium valuation that has made some analysts cautious.
Despite the raised price targets, the consensus rating among analysts remains Hold. The average price target sits at $172.28 across 23 analysts covering the stock.
Four analysts rate the stock as Buy, while seventeen have issued Hold ratings and two maintain Sell ratings. The company’s net margin reached 28.11% with a return on equity of 15.48%.
Royal Bank of Canada increased its price target from $45 to $50 but maintained an Underperform rating. The coverage notes Palantir’s accelerating revenue and expanding AI footprint but highlights concerns about the stock’s premium valuation.
Palantir stock opened at $183.57 on Monday. The stock’s 50-day moving average is $179.31 and its 200-day moving average is $163.90, with a 52-week range between $63.40 and $207.52.
Get 3 Free Stock Ebooks
Discover top-performing stocks in AI, Crypto, and Technology with expert analysis.
- Top 10 AI Stocks - Leading AI companies
- Top 10 Crypto Stocks - Blockchain leaders
- Top 10 Tech Stocks - Tech giants
