Don’t Worry, Palantir Stock Investors! Why Recent Insider Selling Is NOT a Red Flag

InvestorPlace2023-11-21

Palantir Technologies (PLTR) shares have recently hit a new 52-week high, but concerns are again rising that shares have become overvalued.It doesn’t help that a venture capital fund affiliated with ...

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Wilie
2023-11-22
Wilie
Share your opinion about this news…
nywles
2023-11-21
nywles
Thanks

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Why Recent Insider Selling Is NOT a Red Flag\n</h2>\n\n<h4 class=\"meta\">\n\n\n2023-11-21 21:47 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://investorplace.com/market360/2023/11/pltr-stock-recent-insider-selling-is-not-a-red-flag/><strong>InvestorPlace</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Palantir Technologies (PLTR) shares have recently hit a new 52-week high, but concerns are again rising that shares have become overvalued.It doesn’t help that a venture capital fund affiliated with ...</p>\n\n<a href=\"https://investorplace.com/market360/2023/11/pltr-stock-recent-insider-selling-is-not-a-red-flag/\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"BK4533","symbol_name":"AQR资本管理(全球第二大对冲基金)","start_time":0,"source_url":"https://investorplace.com/market360/2023/11/pltr-stock-recent-insider-selling-is-not-a-red-flag/","article_id":"2384729530","we_media_id":null,"thumbnails":[],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2384729530","pubTimestamp":1700574429,"sourceInfo":{"source_id":"investorplace_stock_picks","name":"InvestorPlace stock picks"},"weMediaInfo":null,"summary":"5 Artificial Intelligence Stocks to Buy Before They Skyrocket. Why Recent Insider Selling Is NOT a Red Flag. Don't assume Peter Thiel's recent sale of shares is a warning to stay away. Palantir Technologies  shares have recently hit a new 52-week high, but concerns are again rising that shares have become overvalued.Yet while the stock could soon experience another round of turbulence, I wouldn’t take the Thiel insider selling news to mean now’s the time to make an exit from an existing PLTR stock position.But besides valuation concerns , another cause for worry may be news of insider selling, from an entity affiliated with Palantir co-founder Peter Thiel, no less. Thiel has built a multi-billion dollar fortune founding, building, and/or investing in high tech companies. Palantir has of course been one of his most successful ventures.With this, many may be curious why, as Seeking Alpha reported Nov. 15, a venture capital fund  affiliated with Thiel recently sold $48 million worth of PL","collect":0,"end_time":0,"defaultTopTitle":"investorplace.com","property":[],"viewcount":null,"language":"en","relate_stocks":{"BK4533":"AQR资本管理(全球第二大对冲基金)","LU1861217088.USD":"贝莱德金融科技A2","BK4227":"交易和支付处理服务","LU1861220207.SGD":"Blackrock FinTech A2 SGD-H","BK4211":"区域性银行","BK4566":"资本集团","PLTR":"Palantir Technologies Inc.","LU0158827948.USD":"ALLIANZ GLOBAL SUSTAINABILITY \"A\" (USD) INC","BK4524":"宅经济概念","BK4535":"淡马锡持仓","BK4543":"AI","BK4527":"明星科技股","LU2089283258.USD":"安联环球可持续基金Cl AM Dis","BK4588":"碎股","BK4551":"寇图资本持仓","BK4547":"WSB热门概念","BK4581":"高盛持仓","LU2023251221.USD":"ALLIANZ GLOBAL SUSTAINABILITY \"AM\" (USD) INC","BK4023":"应用软件","BK4554":"元宇宙及AR概念","BK4106":"数据处理与外包服务","LU2089284900.SGD":"Allianz Global Sustainability Cl AM Dis H2-SGD","BK4585":"ETF&股票定投概念","BK4534":"瑞士信贷持仓"},"translate_title":"别担心，帕兰提尔股票投资者们！为什么最近的内幕交易不是一个危险信号","themeId":"d5a154ad31824bafb78dd4878d009f3e","isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"PLTR":1},"content_text":"Palantir Technologies (PLTR) shares have recently hit a new 52-week high, but concerns are again rising that shares have become overvalued.It doesn’t help that a venture capital fund affiliated with co-founder Peter Thiel has reportedly sold part of its position in the AI software firm.Yet while the stock could soon experience another round of turbulence, I wouldn’t take the Thiel insider selling news to mean now’s the time to make an exit from an existing PLTR stock position.Excitement over the generative artificial intelligence trend peaked several months ago. However, in recent weeks, renewed enthusiasm for Palantir Technologies (NYSE: PLTR) exposure to the AI mega-trend, sparked by its latest quarterly earnings release, has led to a further lift for PLTR stock.Although shares in the company, which provides AI and machine learning analytics software to clients in the public and private sectors, has yet to get anywhere near its 2021 highs (topping $35 per share), the stock did just recently hit a new 52-week high. Year-to-date, PLTR is up more-than three-fold.Despite this convincing performance, some may wonder whether now is the time to take chips off the table. This is especially the case, following a recent development (more below).Yet while some short-term turbulence may be in store, don’t view this sale, or another key concern, as reasons to make your exit. Here’s why.PLTR Stock and Peter Thiel’s Recent TransactionAlready richly-priced prior to the post-earnings rally, Palantir shares at current prices are definitely in premium valuation territory. At current prices, the stock trades for around 80 times forward earnings.But besides valuation concerns (which I will dispel later), another cause for worry may be news of insider selling, from an entity affiliated with Palantir co-founder Peter Thiel, no less. Thiel has built a multi-billion dollar fortune founding, building, and/or investing in high tech companies. Palantir has of course been one of his most successful ventures.With this, many may be curious why, as Seeking Alpha reported Nov. 15, a venture capital fund (Mithril LP) affiliated with Thiel recently sold $48 million worth of PLTR stock, per a filing with the U.S. Securities and Exchange Commission (or SEC).With co-founder Thiel seemingly cashing out, alongside other company insiders (who have sold millions worth of shares in recent months), are those most “in the know” about the company’s future prospects getting out while the going’s still good? I wouldn’t jump to that conclusion. Taking a closer look, it’s clear this isn’t the bearish indicator some may perceive it to be.Clear-Cut Counters to Insider Selling and Valuation ConcernsBefore you bail on PLTR stock, keep a few things in mind. For one, Mithril originally invested in Palantir more than a decade ago. It’s not out of the ordinary for a venture capital firm to eventually realize gains on an investment.Also, this sale represents pales compared to the nearly 120 million shares that Thiel owns and/or controls. As for the other insider selling, remember that insiders sell for a variety of reasons, including for estate planning and diversification purposes. It’s not always a sign of bad times ahead.As I discussed previously, Palantir is crushing it with private-sector sales, thanks to booming AI-related demand. While public-sector sales fell short last quarter, this segment could soon experience a growth resurgence as well.The company still focuses on growth rather than on maximizing earnings. That’s evident by forecasts of modest earnings growth in the coming years. Still, investors could continue to bid up PLTR as revenue keeps trending higher, on the view that, once the company’s matures, taking its foot off the growth gas pedal will translate into a high level of earnings.The VerdictDon’t assume it’ll be smooth sailing ahead for PLTR. Besides strong quarterly results, another reason Palantir has rallied recently has been improved market sentiment, driven by news of easing inflation and the rising chances of interest rates coming down next year.However, the inflation/interest rate issue hasn’t fully gone away. It could still drive another round or two of fear, uncertainty, and doubt among investors. Hence, PLTR, one of the more high-profile speculative growth stocks, may encounter some additional near-term turbulence.Nevertheless, as valuation/insider selling are not cause for concern, there’s no need to exit, if you currently hold PLTR stock. As for those who have yet to buy, any near-term weakness could be prime time to initiate a position.PLTR stock earns a B rating in Portfolio Grader.","kind":null,"is_publish_news":true,"is_publish_highlight":true,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"0","news_tag":"","news_rank":0,"symbols":[],"gpt_button":1},"commentList":[{"id":244084058624000,"gmtCreate":1700614865345,"gmtModify":1700614917908,"author":{"id":"4087873899818400","authorId":"4087873899818400","name":"Wilie","avatar":"https://community-static.tradeup.com/news/0a228708213d155cae685d065fbd5207","vip":1,"crmLevel":6,"crmLevelSwitch":0,"idStr":"4087873899818400","authorIdStr":"4087873899818400"},"htmlText":"Share your opinion about this news…","listText":"Share your opinion about this news…","text":"Share your opinion about this news…","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/244084058624000","repostId":2384729530,"repostType":2,"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"EN"},{"id":243641129443392,"gmtCreate":1700519716019,"gmtModify":1700519720496,"author":{"id":"3555362771681553","authorId":"3555362771681553","name":"nywles","avatar":"https://static.tigerbbs.com/a7e6473ec2cec348d167d7d95fbdb76c","vip":1,"crmLevel":7,"crmLevelSwitch":0,"idStr":"3555362771681553","authorIdStr":"3555362771681553"},"htmlText":"Thanks&nbsp;","listText":"Thanks&nbsp;","text":"Thanks","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":3,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/243641129443392","repostId":2384729530,"repostType":2,"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"EN"}],"isCommentEnd":false,"newsSizeData":{"likeSize":27,"commentSize":2,"repostSize":2,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.29.2","shortVersion":"4.29.2","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2384729530"}