Palantir Technologies (NASDAQ:PLTR) Trading Up 7.9% After Earnings Beat

Key Points

• Palantir Technologies shares experienced a 7.9% increase after the company reported better-than-expected earnings, with earnings per share of $0.16, surpassing estimates of $0.14.
• The company achieved $1 billion in revenue for the quarter, reflecting a 48% year-over-year growth, compared to analyst projections of $939.29 million.
• Various analysts have upgraded Palantir’s stock ratings, with Mizuho raising its rating from "underperform" to "neutral" and Bank of America increasing its price target from $150 to $180.

Palantir Technologies Inc. (NASDAQ:PLTR - Get Free Report)'s stock price traded up 7.9% during mid-day trading on Tuesday following a better than expected earnings announcement. The stock traded as high as $176.33 and last traded at $173.42. 66,858,180 shares changed hands during trading, a decline of 28% from the average session volume of 92,226,875 shares. The stock had previously closed at $160.66.

The company reported $0.16 EPS for the quarter, topping the consensus estimate of $0.14 by $0.02. Palantir Technologies had a net margin of 22.18% and a return on equity of 11.26%. The business had revenue of $1 billion for the quarter, compared to analyst estimates of $939.29 million. During the same quarter in the previous year, the firm posted $0.09 earnings per share. Palantir Technologies's quarterly revenue was up 48.0% on a year-over-year basis.

Analyst Upgrades and Downgrades

Several research firms have recently weighed in on PLTR. Bank of America boosted their price objective on shares of Palantir Technologies from $150.00 to $180.00 and gave the company a "buy" rating in a report on Tuesday. Cantor Fitzgerald upped their target price on shares of Palantir Technologies from $110.00 to $155.00 and gave the stock a "neutral" rating in a research report on Tuesday. Citigroup reiterated a "neutral" rating and set a $177.00 price objective (up previously from $158.00) on shares of Palantir Technologies in a research report on Tuesday. UBS Group reiterated a "neutral" rating and set a $165.00 price objective (up previously from $110.00) on shares of Palantir Technologies in a research report on Tuesday. Finally, Royal Bank Of Canada increased their target price on shares of Palantir Technologies from $40.00 to $45.00 and gave the company an "underperform" rating in a research note on Tuesday. Three research analysts have rated the stock with a sell rating, seventeen have given a hold rating and four have assigned a buy rating to the stock. Based on data from MarketBeat, Palantir Technologies currently has a consensus rating of "Hold" and a consensus target price of $125.35.

Insiders Place Their Bets

In other news, insider Shyam Sankar sold 405,000 shares of the company's stock in a transaction on Tuesday, June 10th. The shares were sold at an average price of $132.08, for a total value of $53,492,400.00. Following the sale, the insider directly owned 702,786 shares of the company's stock, valued at $92,823,974.88. This represents a 36.56% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, Director Eric H. Woersching sold 10,214 shares of the company's stock in a transaction on Tuesday, July 1st. The shares were sold at an average price of $130.95, for a total transaction of $1,337,523.30. Following the completion of the sale, the director directly owned 2,348 shares in the company, valued at $307,470.60. This trade represents a 81.31% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last three months, insiders sold 1,485,632 shares of company stock worth $191,222,623. Company insiders own 12.93% of the company's stock.

Hedge Funds Weigh In On Palantir Technologies

Large investors have recently made changes to their positions in the company. Mechanics Financial Corp acquired a new position in Palantir Technologies during the first quarter worth $25,000. Signature Resources Capital Management LLC purchased a new stake in shares of Palantir Technologies during the second quarter worth $25,000. Wealth Preservation Advisors LLC purchased a new stake in shares of Palantir Technologies during the first quarter worth $27,000. 1248 Management LLC purchased a new stake in shares of Palantir Technologies during the first quarter worth $27,000. Finally, Briaud Financial Planning Inc purchased a new stake in shares of Palantir Technologies during the second quarter worth $27,000. 45.65% of the stock is currently owned by institutional investors and hedge funds.

Palantir Technologies Price Performance

The firm has a market cap of $421.42 billion, a PE ratio of 595.03, a price-to-earnings-growth ratio of 13.70 and a beta of 2.60. The stock's fifty day moving average price is $142.12 and its 200-day moving average price is $113.60.

About Palantir Technologies

Palantir Technologies, Inc engages in the business of building and deploying software platforms that serve as the central operating systems for its customers. It operates under the Commercial and Government segments. The Commercial segment focuses on customers working in non-government industries. The Government segment is involved in providing services to customers that are the United States government and non-United States government agencies.