Palantir Technologies (NASDAQ:PLTR) Stock Rating Lowered by Zacks Research

Key Points

• Zacks Research downgraded Palantir from “strong buy” to “hold,” although the broader analyst consensus remains “Moderate Buy” with a $195.33 price target.
• Palantir reported strong quarterly results, with EPS of $0.41 versus the $0.34 consensus estimate and revenue of $1.94 billion, up 92.8% year over year.
• PLTR shares opened at $194.12, near their 52-week high, but the stock’s elevated valuation— including a P/E ratio of 165.91—leaves it vulnerable to a pullback if growth or profitability slows.

Palantir Technologies (NASDAQ:PLTR - Get Free Report) was downgraded by Zacks Research from a "strong-buy" rating to a "hold" rating in a report issued on Tuesday, Zacks reports.

A number of other equities research analysts have also commented on the company. Wolfe Research initiated coverage on Palantir Technologies in a research report on Tuesday, August 4th. They set a "buy" rating on the stock. William Blair reissued an "outperform" rating on shares of Palantir Technologies in a research report on Wednesday, August 26th. Citigroup cut shares of Palantir Technologies from a "buy" rating to a "market perform" rating in a research report on Tuesday, August 4th. Mizuho lifted their price target on Palantir Technologies from $185.00 to $215.00 and gave the company an "outperform" rating in a research note on Tuesday, August 4th. Finally, DA Davidson upped their price objective on shares of Palantir Technologies from $200.00 to $250.00 and gave the company a "buy" rating in a report on Friday, September 11th. One research analyst has rated the stock with a Strong Buy rating, twenty-one have assigned a Buy rating, eleven have given a Hold rating and three have issued a Sell rating to the company's stock. Based on data from MarketBeat, the company currently has an average rating of "Moderate Buy" and a consensus price target of $195.33.

Palantir Technologies Trading Up 1.1%

Shares of PLTR stock opened at $194.12 on Tuesday. Palantir Technologies has a 1 year low of $106.37 and a 1 year high of $207.52. The firm's 50 day moving average is $174.75 and its 200-day moving average is $149.54. The firm has a market capitalization of $466.48 billion, a price-to-earnings ratio of 165.91, a PEG ratio of 2.70 and a beta of 1.60.

Palantir Technologies (NASDAQ:PLTR - Get Free Report) last posted its quarterly earnings results on Monday, August 3rd. The company reported $0.41 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.34 by $0.07. Palantir Technologies had a return on equity of 30.57% and a net margin of 49.01%.The business had revenue of $1.94 billion for the quarter, compared to analysts' expectations of $1.81 billion. During the same quarter last year, the business earned $0.16 earnings per share. The firm's quarterly revenue was up 92.8% compared to the same quarter last year. On average, equities research analysts forecast that Palantir Technologies will post 1.28 earnings per share for the current fiscal year.

Insiders Place Their Bets

In other news, insider Jeffrey Buckley sold 2,055 shares of the business's stock in a transaction dated Thursday, August 20th. The stock was sold at an average price of $174.83, for a total value of $359,275.65. Following the transaction, the insider directly owned 58,171 shares of the company's stock, valued at $10,170,035.93. The trade was a 3.41% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, Director Lauren Friedman Stat sold 3,032 shares of Palantir Technologies stock in a transaction that occurred on Wednesday, August 5th. The stock was sold at an average price of $165.00, for a total value of $500,280.00. Following the completion of the sale, the director owned 54,107 shares of the company's stock, valued at approximately $8,927,655. The trade was a 5.31% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last quarter, insiders sold 536,364 shares of company stock valued at $93,083,303. Insiders own 9.53% of the company's stock.

Institutional Inflows and Outflows

A number of institutional investors have recently modified their holdings of PLTR. Ballast Advisors LLC acquired a new position in shares of Palantir Technologies during the first quarter valued at about $29,000. Cornerstone Financial Management LLC acquired a new stake in shares of Palantir Technologies in the 4th quarter valued at about $31,000. Whipplewood Advisors LLC bought a new stake in Palantir Technologies in the 1st quarter valued at about $32,000. Prudent Man Investment Management Inc. bought a new stake in Palantir Technologies in the 4th quarter valued at about $35,000. Finally, Reflection Asset Management acquired a new position in Palantir Technologies during the 4th quarter worth approximately $35,000. Institutional investors and hedge funds own 45.65% of the company's stock.

Palantir Technologies News Roundup

Here are the key news stories impacting Palantir Technologies this week:

• Positive Sentiment: Veteran technology analyst Dan Ives named Palantir one of his top AI picks alongside Nvidia, Microsoft, Apple and CrowdStrike, arguing that a projected $4 trillion AI-spending cycle is still in its early stages. Dan Ives AI Picks
• Positive Sentiment: Palantir is expanding its sovereign AI strategy by pairing its Sovereign AI Operating System with Armada’s modular data centers, potentially helping customers operate AI systems with greater control over infrastructure and model weights. Palantir Sovereign AI Partnership
• Positive Sentiment: Recent coverage remains broadly constructive, citing Palantir’s strong profitability, roughly 93% quarterly revenue growth, repeated earnings beats and partnerships with major AI companies. Analysts and commentators also continue to favor PLTR over some competing AI-data stocks. Wall Street Analyst Sentiment
• Neutral Sentiment: Investors are focusing on the operating metric that will determine whether Palantir can sustain its premium multiple: continued growth and profitability without a significant increase in costs. The company’s next results will be important for confirming that momentum remains intact. Metric That Could Affect Palantir
• Negative Sentiment: Valuation remains the principal risk. With PLTR trading near $194 and at an exceptionally high earnings multiple, even modestly slower growth or rising expenses could trigger a sharp reassessment. Palantir Valuation Analysis
• Negative Sentiment: Investor Michael Burry reportedly expressed a more bearish view by using longer-dated put options on Palantir and other AI leaders, while a director’s sale of 1,337 shares under a pre-arranged Rule 10b5-1 plan adds a modest negative headline. Burry Bearish AI Position

Palantir Technologies Company Profile

Palantir Technologies Inc NASDAQ: PLTR develops software platforms that help organizations integrate, analyze and act on large and complex datasets. Its principal platforms include Gotham, which is designed primarily for government and defense applications; Foundry, which supports commercial and institutional data operations; Apollo, which helps deploy and manage software across diverse environments; and the Artificial Intelligence Platform (AIP), which connects large language models and other AI tools with an organization's data and workflows.

The company serves government agencies, defense and intelligence organizations, and commercial businesses in industries such as manufacturing, healthcare, energy and financial services.

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