Palantir Technologies' (PLTR) Underperform Rating Reiterated at Royal Bank Of Canada

Key Points

• Royal Bank of Canada reiterated an "Underperform" rating on Palantir with a $90 price target, implying about a 33% downside from the prior close.
• Palantir beat Q1 estimates with $1.63B in revenue (+85% y/y) and $0.33 EPS, and materially raised full‑year revenue guidance, highlighting accelerating AI‑driven demand.
• Despite the blowout quarter, the stock traded down to $135, faces rich valuation (P/E ~214), heavy insider selling (over 1M shares recently), and mixed analyst views—yet consensus remains a Moderate Buy with a ~$194 target.

Palantir Technologies (NASDAQ:PLTR - Get Free Report)'s stock had its "underperform" rating reaffirmed by investment analysts at Royal Bank Of Canada in a research note issued to investors on Tuesday,Benzinga reports. They currently have a $90.00 price target on the stock. Royal Bank Of Canada's price objective suggests a potential downside of 33.36% from the company's previous close.

Several other brokerages have also issued reports on PLTR. Rosenblatt Securities upped their target price on Palantir Technologies from $200.00 to $225.00 and gave the stock a "buy" rating in a research note on Tuesday. Benchmark assumed coverage on Palantir Technologies in a research note on Wednesday, April 1st. They issued a "hold" rating for the company. HSBC lowered Palantir Technologies from a "buy" rating to a "hold" rating and dropped their price objective for the company from $205.00 to $151.00 in a research note on Friday. Loop Capital dropped their price objective on Palantir Technologies from $230.00 to $220.00 and set a "buy" rating for the company in a research note on Friday, January 30th. Finally, Citigroup dropped their price objective on Palantir Technologies from $260.00 to $210.00 and set a "buy" rating for the company in a research note on Tuesday, April 28th. One investment analyst has rated the stock with a Strong Buy rating, sixteen have assigned a Buy rating, twelve have assigned a Hold rating and two have given a Sell rating to the stock. According to MarketBeat, the company has a consensus rating of "Moderate Buy" and a consensus target price of $194.25.

Palantir Technologies Stock Performance

PLTR traded down $10.98 during midday trading on Tuesday, hitting $135.05. The stock had a trading volume of 52,562,874 shares, compared to its average volume of 49,395,082. The company has a market cap of $323.00 billion, a P/E ratio of 214.37, a price-to-earnings-growth ratio of 2.69 and a beta of 1.52. The business has a fifty day moving average of $145.27 and a 200 day moving average of $162.50. Palantir Technologies has a 1 year low of $105.32 and a 1 year high of $207.52.

Palantir Technologies (NASDAQ:PLTR - Get Free Report) last issued its earnings results on Monday, May 4th. The company reported $0.33 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.28 by $0.05. The business had revenue of $1.63 billion during the quarter, compared to analyst estimates of $1.54 billion. Palantir Technologies had a return on equity of 23.81% and a net margin of 36.31%.Palantir Technologies's revenue for the quarter was up 84.7% on a year-over-year basis. During the same quarter in the prior year, the firm earned $0.13 earnings per share. On average, equities research analysts anticipate that Palantir Technologies will post 1.05 earnings per share for the current year.

Insider Activity

In related news, insider Shyam Sankar sold 168,004 shares of the company's stock in a transaction that occurred on Friday, February 20th. The stock was sold at an average price of $133.72, for a total transaction of $22,465,494.88. Following the completion of the transaction, the insider owned 642,786 shares in the company, valued at $85,953,343.92. This represents a 20.72% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, insider David A. Glazer sold 17,438 shares of the company's stock in a transaction that occurred on Friday, February 20th. The shares were sold at an average price of $133.72, for a total value of $2,331,809.36. Following the transaction, the insider owned 392,370 shares of the company's stock, valued at approximately $52,467,716.40. This represents a 4.26% decrease in their position. The SEC filing for this sale provides additional information. In the last 90 days, insiders have sold 1,029,479 shares of company stock valued at $137,685,797. Corporate insiders own 9.53% of the company's stock.

Hedge Funds Weigh In On Palantir Technologies

A number of hedge funds and other institutional investors have recently made changes to their positions in PLTR. Norges Bank bought a new position in shares of Palantir Technologies during the fourth quarter valued at approximately $5,149,641,000. Vanguard Group Inc. raised its holdings in Palantir Technologies by 4.0% in the third quarter. Vanguard Group Inc. now owns 213,886,270 shares of the company's stock worth $39,017,133,000 after purchasing an additional 8,168,604 shares in the last quarter. State Street Corp raised its holdings in Palantir Technologies by 7.2% in the third quarter. State Street Corp now owns 101,258,899 shares of the company's stock worth $18,471,648,000 after purchasing an additional 6,777,771 shares in the last quarter. Cardano Risk Management B.V. raised its holdings in Palantir Technologies by 917.4% in the fourth quarter. Cardano Risk Management B.V. now owns 6,585,630 shares of the company's stock worth $1,170,596,000 after purchasing an additional 5,938,343 shares in the last quarter. Finally, Corient Private Wealth LLC raised its holdings in Palantir Technologies by 1,449.7% in the fourth quarter. Corient Private Wealth LLC now owns 5,272,601 shares of the company's stock worth $937,205,000 after purchasing an additional 4,932,364 shares in the last quarter. Institutional investors own 45.65% of the company's stock.

Key Headlines Impacting Palantir Technologies

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

• Positive Sentiment: Company beat and raised: Palantir reported Q1 revenue of $1.63B (+85% y/y), EPS above consensus and raised FY revenue guidance materially — proof of accelerating AI-driven demand that underpins the bullish case. Palantir press release
• Positive Sentiment: Strong unit economics and cash flow: metrics showed rapid margin expansion, robust operating cash flow and a very high Rule-of-40 score — data that supports durable profitability versus many AI hardware peers. QuiverQuant earnings summary
• Positive Sentiment: Wall Street bullish takes: several firms either raised targets or reiterated buys (Wedbush’s Dan Ives highlighted PLTR as a top non‑Mag‑7 AI pick with a $230 PT; Rosenblatt and Oppenheimer also showed support), which could keep upside potential alive. Ives defends Palantir
• Neutral Sentiment: Mixed analyst signals: while some firms raised targets, others trimmed ratings/targets (DA Davidson cut to neutral and trimmed its target), leaving sentiment split and contributing to increased volatility. TipRanks on analyst split
• Neutral Sentiment: Management positioning: CEO Alex Karp said the company will prioritize U.S. national‑security customers over commercial clients, which supports government revenues but creates ambiguity on commercial go‑to‑market cadence. Karp prioritizes warfighters
• Negative Sentiment: Profit‑taking and valuation pressure: despite the beat, investors sold into the rally — PLTR trades at rich multiples (very high P/E), and some market participants flagged it as an expensive AI play, weighing on the immediate reaction. CNBC Q1 coverage
• Negative Sentiment: High-profile short and insider sales: Michael Burry disclosed an outright short position, and filings/aggregated data show heavy insider selling — both amplify negative sentiment and can pressure the stock near term. Business Insider on Burry
• Negative Sentiment: Some analysts still cautious: a few strategists warned to trim/exit exposure despite the blowout quarter, pointing to overstretched valuation and the risk of the market “misreading” AI adoption timelines. Finbold sell warning

Palantir Technologies Company Profile

Palantir Technologies is a software company that develops data integration, analytics and operational decision-making platforms for government and commercial customers. Founded in 2003 by a team that included Alex Karp and Peter Thiel, Palantir has grown into a provider of enterprise-scale software designed to help organizations integrate disparate data sources, build analytic models and drive operational workflows. The company went public in 2020 and continues to position its products around large, complex data projects where security, provenance and real-time collaboration are important.

Palantir's product portfolio centers on a small number of core platforms.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.