Planet Labs PBC (NYSE:PL) Shares Down 7.8% - Time to Sell?

Key Points

• Planet Labs shares fell 7.8% in midday trading, with the stock dipping as low as $22.90 after closing at $24.90 the prior day. Trading volume was also well below average.
• Analysts remain mixed on the stock: the consensus rating is Hold with a $35.36 price target, though recent calls ranged from sell to buy. New Street Research initiated coverage with a sell rating, while Citi and Goldman Sachs raised price targets.
• The company’s latest quarter showed revenue growth of 42.1% to $94.15 million, but profitability remains weak with negative margins and a loss per share. Recent insider selling and the stock trading below its 50-day and 200-day averages may be adding pressure.

Planet Labs PBC (NYSE:PL - Get Free Report) shares were down 7.8% during mid-day trading on Thursday . The stock traded as low as $22.90 and last traded at $22.9670. Approximately 3,076,575 shares were traded during mid-day trading, a decline of 77% from the average daily volume of 13,314,152 shares. The stock had previously closed at $24.90.

Analyst Upgrades and Downgrades

Several research analysts have weighed in on PL shares. New Street Research assumed coverage on shares of Planet Labs PBC in a report on Wednesday, May 13th. They set a "sell" rating and a $28.00 price objective for the company. Morgan Stanley upped their target price on shares of Planet Labs PBC from $26.00 to $35.00 and gave the company an "equal weight" rating in a research note on Wednesday, March 25th. The Goldman Sachs Group lifted their price target on Planet Labs PBC from $22.00 to $25.00 and gave the stock a "neutral" rating in a research note on Tuesday. Citigroup boosted their price objective on Planet Labs PBC from $30.00 to $35.00 and gave the company a "buy" rating in a report on Thursday, April 2nd. Finally, Zacks Research upgraded Planet Labs PBC from a "strong sell" rating to a "hold" rating in a research note on Thursday, July 2nd. Six research analysts have rated the stock with a Buy rating, four have given a Hold rating and two have assigned a Sell rating to the company's stock. According to data from MarketBeat, the stock currently has a consensus rating of "Hold" and a consensus price target of $35.36.

Planet Labs PBC Stock Down 11.0%

The stock's fifty day simple moving average is $35.40 and its two-hundred day simple moving average is $30.60. The company has a debt-to-equity ratio of 1.01, a current ratio of 2.81 and a quick ratio of 2.78. The company has a market capitalization of $7.90 billion, a price-to-earnings ratio of -19.31 and a beta of 2.06.

Planet Labs PBC (NYSE:PL - Get Free Report) last posted its quarterly earnings results on Thursday, June 4th. The company reported ($0.03) EPS for the quarter, beating the consensus estimate of ($0.04) by $0.01. The business had revenue of $94.15 million during the quarter, compared to analyst estimates of $90.39 million. Planet Labs PBC had a negative net margin of 111.17% and a negative return on equity of 105.29%. Planet Labs PBC's revenue for the quarter was up 42.1% compared to the same quarter last year. On average, sell-side analysts predict that Planet Labs PBC will post -0.92 earnings per share for the current fiscal year.

Insider Activity at Planet Labs PBC

In other news, insider Robert H. Schingler sold 64,593 shares of the stock in a transaction that occurred on Friday, July 10th. The stock was sold at an average price of $25.92, for a total transaction of $1,674,250.56. Following the sale, the insider directly owned 825,541 shares in the company, valued at approximately $21,398,022.72. This represents a 7.26% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, Director John W. Raymond sold 6,494 shares of the firm's stock in a transaction that occurred on Monday, July 13th. The stock was sold at an average price of $26.16, for a total value of $169,883.04. Following the completion of the sale, the director directly owned 37,114 shares in the company, valued at approximately $970,902.24. This trade represents a 14.89% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold 96,087 shares of company stock valued at $2,492,134 over the last ninety days. Corporate insiders own 16.42% of the company's stock.

Institutional Investors Weigh In On Planet Labs PBC

A number of hedge funds have recently added to or reduced their stakes in PL. Vanguard Group Inc. grew its position in Planet Labs PBC by 4.3% in the 4th quarter. Vanguard Group Inc. now owns 19,358,515 shares of the company's stock worth $381,750,000 after purchasing an additional 806,818 shares during the last quarter. AMI Asset Management Corp bought a new stake in shares of Planet Labs PBC during the fourth quarter valued at approximately $673,000. Hsbc Holdings PLC bought a new stake in shares of Planet Labs PBC during the fourth quarter valued at approximately $8,457,000. Norges Bank acquired a new position in shares of Planet Labs PBC during the fourth quarter worth approximately $17,494,000. Finally, State of New Jersey Common Pension Fund D acquired a new position in shares of Planet Labs PBC during the fourth quarter worth approximately $3,715,000. 41.71% of the stock is currently owned by institutional investors.

Planet Labs PBC Company Profile

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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