Fortune 100 senior advisor turned Palantir (NASDAQ:PLTR) board member Lauren Friedman Stat recently sold a staggering 11,000 shares of PLTR stock. What’s behind this latest insider trade?
According to a recent disclosure, Stat, who serves as an independent director and Audit Committee member of Palantir’s board of directors, has apparently soured on Palantir. According to the recently released Securities and Exchanges (SEC) filing dated June 15, Stat sold 10,595 shares of Palantir common stock, priced at about $16.38 per share. This amounts to a nearly $175,000 transaction.
Clearly, Stat, who joined Palantir’s board in January 2021, is well-versed in her own company. Since her June 15 sale, PLTR stock has dropped more than 10%. In fact, June 15 represents the highest level Palantir stock has hit all year. At the time, the stock was up nearly 160% year-to-date (YTD), while today, it’s slimmed to 130% YTD.
If you recall, Palantir has been one of the big winners of this year’s artificial intelligence-fueled stock market bull run.
PLTR Stock Enters Correction Territory Following Downgrades
It seems Stat’s sale, though unknown until recently, has been something of a hidden sell sign for investors. Palantir stock has only lost value since June 15. Indeed, analysts believe Palantir may be amid a correction after running unusually hot this year.
A number of analysts have issued downgrades on PLTR stock recently, including five-star Raymond James analyst Brian Gesuale.
“The recent run in shares coupled with a premium valuation make finding a catalyst more challenging in the near term,” Gesuale said Tuesday after downgrading Palantir’s rating from “strong buy” to “outperform.” That said, Gesuale also raised the company’s price target to $18 per share from $15, representing a potential 14.5% upside.
On Wednesday, PLTR fell almost 7.5%, its third-straight loss, the longest losing streak in almost two months. This puts PLTR down more than 10% since its Jan. 15 high, which Wall Street defines as a correction.
On the date of publication, Shrey Dua did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
