Jefferies’ five-star-rated analyst, Brent Thill, today flagged heavy insider selling in Palantir Technologies’ (PLTR) stock. Thill noted that the company’s CEO, Alex Karp, has offloaded $45 million in shares over the past two weeks, following over $2 billion in stock sales throughout 2024. Overall, Thill remains bearish on PLTR stock with a Sell rating, pointing to concerns over heavy insider selling trends and valuation multiples. Over the last 12 months, Palantir’s stock price has surged by a remarkable 254%.
Jefferies Remains Bearish on PLTR Stock
Thill noted that Karp has already sold 21% of his total holdings in the company. However, his current trading plan, structured under Rule 10b5-1, permits the sale of an additional 17 million shares by September 2025. Notably, Rule 10b5-1 plans are pre-arranged trading agreements that allow company executives to sell shares at predetermined intervals, helping them avoid accusations of insider trading. This means that unless the plan is modified, Karp is set to continue reducing his stake in Palantir over the next year.
Additionally, Jefferies pointed out that Salesforce’s (CRM) incoming CFO, Robin Washington, recently bought approximately $499,000 worth of shares as she prepares to assume her role this spring. This stark difference in insider trading activity hints at varying levels of confidence in the outlook of these companies.
On top of that, Palantir’s stock valuation has also experienced a significant decline. After reaching a high of 61 times the 2026 revenue, the multiple has decreased by 36% to 39 times. Despite this reduction, Thill pointed out that Palantir’s multiple remains approximately twice as high as the next-highest software company. Thill’s market analysis indicates the possibility of additional contraction in Palantir’s valuation multiple, suggesting that the stock may experience further price adjustments.
Is Palantir a Good Stock to Buy Now?
Overall, Wall Street has a Hold consensus rating on PLTR stock, based on four Buys, nine Holds, and five Sells assigned in the last three months. The average share price target for Palantir is $93.13, which implies an upside of 10.34% from current levels.
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