Palantir Stock Explodes 11.9%: Why Investors Aren’t Worried About Insider Selling?

Palantir Technologies (NYSE: PLTR) has been on a remarkable run, with its stock climbing 11.9% over the past five days. The surge comes despite recent insider selling and some analysts downgrading the stock. So, what’s really happening? Let’s break it down.

Insiders Cash Out—Should Investors Worry?

One of the biggest red flags for investors is when company insiders sell their shares. It can sometimes signal that those closest to the business don’t see much upside ahead.

That’s exactly what happened with Palantir recently. On December 3, 2024, the company’s Chief Operating Officer, Shyam Sankar, sold a massive 5.25 million shares at an average price of $70.08, netting him a cool $367.92 million. This wasn’t just a small trim—Sankar reduced his personal stake in Palantir by 87.46%, leaving himself with just 752,786 shares.

A few days earlier, on November 29, he offloaded another 30,000 shares for around $2 million. All of this was disclosed in official SEC filings, sparking speculation among investors about whether something negative is on the horizon.

But here’s the thing—insiders sell stock for all sorts of reasons, from personal financial planning to diversifying their holdings. It doesn’t always mean they’ve lost faith in the company.

Analysts Are Split—Mixed Signals for Investors

While Palantir’s stock has been climbing, analysts can’t seem to agree on where it’s headed next.

• Goldman Sachs recently raised its price target from $16 to $41, keeping a neutral stance.

• Wedbush is more optimistic, hiking its target from $57 to $75 and maintaining an “outperform” rating.

• Argus, however, took the opposite approach, downgrading Palantir from a “buy” to a “hold.”

As of now, the stock has a mixed consensus—out of 16 analysts covering Palantir, six have a “sell” rating, eight suggest “holding,” and only two recommend buying. The average price target sits at $35.64, well below its current trading price.

Stock Performance—Resilient Despite Concerns

Despite all this uncertainty, Palantir’s stock has barely flinched. Even after news of insider selling broke, it dipped just 1.5% before bouncing back to close at $69.89.

Trading volume was also lower than usual, which suggests that investors aren’t rushing for the exits. In fact, many seem more focused on the company’s long-term growth potential rather than short-term noise.

Big Investors Are Still Betting on Palantir

It’s not just everyday investors paying attention—big institutional players are making moves on Palantir as well.

• Retirement Systems of Alabama recently bought a new stake worth around $16.37 million.

• Franklin Resources Inc. doubled down, increasing its position by 102.3% to 171,653 shares, now valued at about $6.39 million.

These large investments suggest that while some insiders are cashing out, major institutions still see strong potential in Palantir’s future.

Financial Health—Is Palantir Actually Performing Well?

The most important factor in a stock’s success is the company’s performance, and Palantir has been delivering solid results.

In its latest earnings report, the company posted earnings of $0.10 per share, slightly beating analysts’ expectations. Revenue for the quarter came in at $725.52 million, marking an impressive 30% year-over-year increase.

These numbers show that Palantir’s business is growing at a healthy pace, which likely explains why investors are sticking around despite some warning signs.

Bottom Line—What Should Investors Make of All This?

Palantir’s stock rally is a classic example of how markets can sometimes seem counterintuitive. Even with insider selling and analyst downgrades, the stock continues to climb.

What’s driving the optimism? Likely a mix of strong revenue growth, institutional interest, and a long-term belief in the company’s AI-driven future.

While insider selling can be concerning, it’s not always a death sentence for a stock. Investors should keep an eye on future earnings reports and company developments to get a clearer picture of where Palantir is headed.