Planet Labs PBC (NYSE:PL) Shares Down 2.5% - Should You Sell?

Key Points

• Shares fell 2.5% to $37.52 mid-day on lighter volume (~8.85M), giving the company a market cap of $12.99B while the current price sits above the consensus analyst price target of $29.94.
• Planet missed on EPS (reported -$0.48 vs. -$0.05 expected) despite a revenue beat of $86.82M (+41.1% YoY), and remains unprofitable with a net margin of -80.22% and ROE of -69.61%.
• Analysts are mixed—several firms raised targets (some to $40) but the consensus rating is "Hold"—and insiders sold roughly 492,249 shares (~$15.5M) in the past three months, indicating notable insider selling.

Planet Labs PBC (NYSE:PL - Get Free Report) dropped 2.5% during mid-day trading on Monday . The company traded as low as $36.93 and last traded at $37.5220. Approximately 8,852,665 shares were traded during mid-day trading, a decline of 37% from the average daily volume of 13,953,000 shares. The stock had previously closed at $38.48.

Analyst Upgrades and Downgrades

A number of analysts recently issued reports on the company. Citigroup boosted their price target on Planet Labs PBC from $30.00 to $35.00 and gave the company a "buy" rating in a report on Thursday, April 2nd. Wedbush boosted their price target on Planet Labs PBC from $30.00 to $40.00 and gave the company an "outperform" rating in a report on Friday, March 20th. Needham & Company LLC boosted their price target on Planet Labs PBC to $40.00 and gave the company a "buy" rating in a report on Friday, March 20th. Craig Hallum restated a "buy" rating and issued a $30.00 price objective on shares of Planet Labs PBC in a report on Tuesday, January 13th. Finally, Cantor Fitzgerald lifted their price objective on Planet Labs PBC from $20.00 to $40.00 and gave the company an "overweight" rating in a report on Friday, March 20th. Six equities research analysts have rated the stock with a Buy rating, four have given a Hold rating and one has assigned a Sell rating to the company's stock. According to MarketBeat.com, the company presently has a consensus rating of "Hold" and an average price target of $29.94.

Planet Labs PBC Trading Down 2.5%

The company has a market capitalization of $12.99 billion, a PE ratio of -48.11 and a beta of 1.83. The company's fifty day moving average is $28.45 and its 200-day moving average is $21.30. The company has a debt-to-equity ratio of 2.37, a current ratio of 1.65 and a quick ratio of 1.64.

Planet Labs PBC (NYSE:PL - Get Free Report) last issued its quarterly earnings data on Thursday, March 19th. The company reported ($0.48) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.05) by ($0.43). The business had revenue of $86.82 million for the quarter, compared to analysts' expectations of $78.17 million. Planet Labs PBC had a negative net margin of 80.22% and a negative return on equity of 69.61%. Planet Labs PBC's revenue for the quarter was up 41.1% compared to the same quarter last year. On average, analysts anticipate that Planet Labs PBC will post -0.45 EPS for the current fiscal year.

Insider Buying and Selling

In related news, Director Vijaya Gadde sold 20,000 shares of the company's stock in a transaction dated Thursday, January 22nd. The stock was sold at an average price of $26.77, for a total transaction of $535,400.00. Following the transaction, the director directly owned 250,169 shares of the company's stock, valued at $6,697,024.13. This represents a 7.40% decrease in their position. The sale was disclosed in a filing with the SEC, which is available at this link. Also, insider Robert H. Schingler sold 73,683 shares of the company's stock in a transaction dated Monday, April 6th. The shares were sold at an average price of $35.07, for a total value of $2,584,062.81. Following the transaction, the insider directly owned 256,488 shares in the company, valued at $8,995,034.16. This represents a 22.32% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 492,249 shares of company stock worth $15,500,339 in the last three months. 17.53% of the stock is owned by company insiders.

Institutional Trading of Planet Labs PBC

Several large investors have recently bought and sold shares of the stock. Parkside Financial Bank & Trust lifted its position in Planet Labs PBC by 92.5% during the 4th quarter. Parkside Financial Bank & Trust now owns 1,550 shares of the company's stock worth $31,000 after acquiring an additional 745 shares during the period. MCF Advisors LLC purchased a new position in Planet Labs PBC during the 3rd quarter worth approximately $32,000. Baillie Gifford & Co. acquired a new stake in Planet Labs PBC during the 4th quarter worth about $32,000. Larson Financial Group LLC acquired a new stake in Planet Labs PBC during the 3rd quarter worth about $39,000. Finally, GAMMA Investing LLC grew its position in Planet Labs PBC by 146.4% during the 4th quarter. GAMMA Investing LLC now owns 2,011 shares of the company's stock worth $40,000 after purchasing an additional 1,195 shares during the period. Hedge funds and other institutional investors own 41.71% of the company's stock.

About Planet Labs PBC

Planet Labs PBC is a public benefit corporation that operates one of the largest fleets of Earth-imaging satellites, providing high-frequency, high-resolution imagery and data analytics to a broad range of industries. The company's multi-spectral satellite constellation captures daily snapshots of the planet, enabling clients to monitor changes in agriculture, forestry, urban development, energy infrastructure and environmental conditions. Planet's imagery platform is designed to support timely decision-making by transforming raw satellite data into actionable insights for business and government users.

Founded in 2010 by former NASA scientists Will Marshall, Robbie Schingler and Chris Boshuizen, Planet Labs grew from a small startup into a key provider in the satellite imaging sector.

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