Alex Karp, the CEO of AI software company Palantir (PLTR), sold another $45 million worth of his company’s stock over the past two weeks, which adds to the $2 billion of shares he unloaded in 2024. This latest sale brings the total percentage of his stake sold to 21%. Unsurprisingly, Karp’s selling spree has caught investors’ attention, especially after announcing that he plans to sell up to 9.975 million PLTR shares by September 2025.
And the selling activity isn’t limited to Karp, either. In fact, other Palantir insiders have also been aggressively offloading their shares. This has sent a negative signal to retail investors, who have been the driving force behind the stock’s impressive rally over the past year. As a result, Palantir’s shares have plummeted 30% from their 52-week closing high, and analysts, such as Marco Iachini of Vanda Research, warn that Palantir could be vulnerable to a loss of retail momentum. Indeed, Iachini noted that if he were to “pick a single name that could be most at risk of an unwind, PLTR would be it.”
Furthermore, Palantir’s struggles are made worse by several other factors, such as a potential 8% annual cut in U.S. defense spending, which could impact the company’s government contracts. In addition, Palantir’s annual report raised some red flags due to slowing headcount growth, the departure of its chief accounting officer, and an over-reliance on its biggest customers. Analysts also remain concerned about the stock’s valuation, which currently sits at a forward price-to-earnings ratio of 162 times.
What Is the Prediction for PLTR Stock?
Overall, analysts have a Hold consensus rating on PLTR stock based on four Buys, 10 Holds, and four Sells assigned in the past three months, as indicated by the graphic below. Furthermore, the average PLTR price target of $95.33 per share implies 10.9% upside potential.
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