Surf Air Mobility (SRFM) stock underwent a massive rally after it was revealed that big data company Palantir Technologies (PLTR) bought 1,040,557 shares of the technology-driven aviation company’s shares. Palantir Technologies paid an average price of $2.07 per share for SRFM stock on June 18. Following this purchase, it now owns 4,461,564 shares of SRFM, giving it a 19.9% stake in Surf Air Mobility.
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Surf Air Mobility is currently undergoing a four-phase transformation plan. The company is in the second phase of this plan and reached new milestones earlier this month, such as improved controllable completion. Its current goal is to report profitability from its airline operations this year.
Surf Air Mobility Stock Movement
News of Palantir Technologies buying SRFM stock caused the shares to undergo a massive rally on Tuesday. That saw the stock close out trading yesterday up 88.48%. With that came heavy trading, as over 79 million shares changed hands, compared to a three-month daily average of 584,500 shares.
SRFM stock’s positive momentum continued into pre-market trading on Wednesday. This has the shares up 8.33% before the opening bell. Even with its recent rally, SRFM stock is still down 33.21% year-to-date, but is up 19.68% over the past 12 months.
Is Surf Air Mobility Stock a Buy, Sell, or Hold?
Turning to Wall Street, the analysts’ consensus rating for Surf Air Mobility is Moderate Buy, based on one Buy and one Hold rating over the past three months. With that comes an average SRFM stock price target of $3.63, representing a potential 0.83% upside for the shares.
Spark, TipRanks’ AI analyst, rates Surf Air Mobility a Neutral (43) with a $2 price target, suggesting a possible 44.44% downside for the shares. It cites “significant financial and operational challenges” as reasons for this rating and price target.
