It makes sense and dollars to buy Palantir Technologies Inc. (PLTR) stock

Palantir Technologies Inc. (NYSE: PLTR) stock fell -4.88% on Tuesday to $7.02 against a previous-day closing price of $7.38. With 22.51 million shares changed hands, the volume of the stock remained lighter than its average volume of 32.67 million shares. During the session, the Software – Infrastructure company that operates in wider Technology sector, reached to the highest price of $8.76 whereas the lowest price it dropped to was $5.84. The 52-week range on PLTR shows that it touched its highest point at $14.86 and its lowest point at $5.92 during that stretch. It currently has a 1-year price target of $8.86.

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Price Performance and Earnings:

Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of PLTR was down-trending over the past week, with a drop of -0.71%, but this was up by 8.00% over a month. Three-month performance dropped to -15.32% while six-month performance fell -27.48%. The stock lost -48.12% in the past year, while it has gained 9.35% so far this year. A look at the trailing 12-month EPS for PLTR yields -0.27 with Next year EPS estimates of 0.16. For the next quarter, that number is 0.03. This implies an EPS growth rate of 58.60% for this year and 247.83% for next year.

Float and Shares Shorts:

At present, 2.07 billion PLTR shares are outstanding with a float of 1.76 billion shares on hand for trading. On Oct 13, 2022, short shares totaled 119.49 million, which was 5.79% higher than short shares on Sep 14, 2022. In addition to Mr. Peter Andreas Thiel as the firm’s Co-Founder & Chairman, Dr. Alexander C. Karp serves as its Co-Founder, CEO & Director.


Institutional Ownership:

Through their ownership of 33.78% of PLTR’s outstanding shares, institutional investors have minority control over the company. Other institutions hold 9.17% of PLTR, in contrast to 17.99% held by mutual funds. Shares owned by individuals account for 15.98%. As the largest shareholder in PLTR with 7.77% of the stake, The Vanguard Group, Inc. holds 153,734,737 shares worth 153,734,737. A second-largest stockholder of PLTR, BlackRock Fund Advisors, holds 70,507,142 shares, controlling over 3.56% of the firm’s shares. SSgA Funds Management, Inc. is the third largest shareholder in PLTR, holding 34,876,691 shares or 1.76% stake. With a 2.59% stake in PLTR, the Vanguard Total Stock Market Index is the largest stakeholder. A total of 51,181,704 shares are owned by the mutual fund manager. The Vanguard Mid Cap Index Fund, which owns about 1.96% of PLTR stock, is the second-largest Mutual Fund holder. It holds 38,853,490 shares valued at 249.44 million. Vanguard Extended Market Index Fu holds 1.21% of the stake in PLTR, owning 23,961,865 shares worth 153.84 million.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for PLTR since 17 analysts follow the stock currently. There are 3 analysts who recommend BUY ratings, while 5 suggest SELL ratings. Of the remaining analysts, 9 believe that the stock is worth HOLDING, 0 give it an OVERWEIGHT rating, and 0 thinks that it’s UNDERWEIGHT. In the same way, a target price assigned to a stock can also reveal much about its potential. With PLTR analysts setting a high price target of $15.00 and a low target of $4.50, the average target price over the next 12 months is $8.43. Based on these targets, PLTR could surge 113.68% to reach the target high and fall by -35.9% to reach the target low. Reaching the average price target will result in a growth of 20.09% from current levels.


EPS: Estimates vs Actual

It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy. PLTR will report FY 2022 earnings on 02/15/2024. Analysts have provided yearly estimates in a range of $0.06 being high and $0.03 being low. For PLTR, this leads to a yearly average estimate of $0.05. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. Palantir Technologies Inc. surprised analysts by -$0.01 when it reported $0.01 EPS against a consensus estimate of $0.02. The surprise factor in the prior quarter was -$0.04. Based on analyst estimates, the high estimate for the next quarter is $0.04 and the low estimate is $0.01. The average estimate for the next quarter is thus $0.03.

Summary of Insider Activity:

Insiders traded PLTR stock several times over the past three months with 8 Buys and 19 Sells. In these transactions, 2,155,328 shares were bought while 2,512,738 shares were sold. The number of buy transactions has increased to 30 while that of sell transactions has risen to 74 over the past year. The total number of shares bought during that period was 4,408,968 while 6,193,965 shares were sold.

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