Planet Labs PBC (NYSE:PL) Shares Gap Down - Here's What Happened

Key Points

• Planet Labs shares gapped down sharply before trading, opening at $38.30 after closing at $43.53 and later trading around $34.86, reflecting a drop of about 22.9% on heavy volume.
• Recent earnings were solid and guidance improved: Q1 revenue came in at $94.15 million, topping estimates and rising 42.1% year over year, while EPS matched expectations at -$0.03. The company also raised its outlook for both Q2 and fiscal 2027 revenue.
• Investor concern centers on dilution after Planet filed for an at-the-market stock offering program of up to $1.5 billion, which could support capital needs but increase dilution risk for existing shareholders.

Planet Labs PBC (NYSE:PL - Get Free Report)'s stock price gapped down prior to trading on Friday . The stock had previously closed at $43.53, but opened at $38.30. Planet Labs PBC shares last traded at $34.8610, with a volume of 7,141,975 shares changing hands.

Key Headlines Impacting Planet Labs PBC

Here are the key news stories impacting Planet Labs PBC this week:

• Positive Sentiment: Planet reported first-quarter revenue of $94.15 million, beating expectations and rising 42.1% year over year, while EPS of -$0.03 matched estimates. The company also raised guidance, with Q2 revenue outlook of $102 million-$107 million and FY2027 revenue guidance of $425 million-$441 million, suggesting continued top-line momentum. Article: Planet Reports Financial Results for First Quarter of Fiscal Year 2027
• Positive Sentiment: The company also announced an extended NGA partnership, including an 8-figure contract extension for maritime surveillance and a new award for crisis response monitoring, reinforcing demand for Planet’s government and defense business. Article: Planet Secures 8-Figure NGA Contract Extension for Maritime Surveillance and New Award for Crisis Response Monitoring
• Neutral Sentiment: Needham raised its price target on Planet Labs to $53 from $40 and reiterated a buy rating, signaling improving analyst confidence after the earnings report. Article: Analyst price target increase
• Negative Sentiment: Sentiment was pressured by Planet’s filing for a large at-the-market stock offering program of up to $1.5 billion, which can raise capital but also increases dilution risk for existing shareholders. Article: Planet Labs Launches $1.5 Billion ATM Stock Program

Analyst Upgrades and Downgrades

PL has been the subject of several recent analyst reports. New Street Research initiated coverage on shares of Planet Labs PBC in a research note on Wednesday, May 13th. They issued a "sell" rating and a $28.00 target price for the company. Cantor Fitzgerald raised their target price on shares of Planet Labs PBC from $20.00 to $40.00 and gave the company an "overweight" rating in a research note on Friday, March 20th. The Goldman Sachs Group raised their target price on shares of Planet Labs PBC from $18.00 to $20.00 and gave the company a "neutral" rating in a research note on Monday, April 20th. Morgan Stanley increased their price target on shares of Planet Labs PBC from $26.00 to $35.00 and gave the company an "equal weight" rating in a report on Wednesday, March 25th. Finally, Wedbush reissued an "outperform" rating and issued a $50.00 price target on shares of Planet Labs PBC in a report on Friday. Six equities research analysts have rated the stock with a Buy rating, three have given a Hold rating and three have given a Sell rating to the company. According to MarketBeat.com, the company currently has an average rating of "Hold" and a consensus price target of $33.53.

Planet Labs PBC Stock Down 22.9%

The company has a current ratio of 1.65, a quick ratio of 1.64 and a debt-to-equity ratio of 2.37. The stock has a market cap of $11.62 billion, a P/E ratio of -42.62 and a beta of 1.99. The firm has a 50-day simple moving average of $38.85 and a two-hundred day simple moving average of $27.60.

Planet Labs PBC (NYSE:PL - Get Free Report) last announced its earnings results on Thursday, June 4th. The company reported ($0.03) earnings per share (EPS) for the quarter, meeting analysts' consensus estimates of ($0.03). The company had revenue of $94.15 million during the quarter, compared to analysts' expectations of $90.00 million. Planet Labs PBC had a negative net margin of 80.22% and a negative return on equity of 69.61%. The business's revenue was up 42.1% on a year-over-year basis. Equities research analysts expect that Planet Labs PBC will post -0.45 earnings per share for the current fiscal year.

Insider Transactions at Planet Labs PBC

In other news, CFO Ashley F. Johnson sold 200,000 shares of the firm's stock in a transaction that occurred on Thursday, April 2nd. The shares were sold at an average price of $35.10, for a total transaction of $7,020,000.00. Following the transaction, the chief financial officer directly owned 1,895,162 shares of the company's stock, valued at approximately $66,520,186.20. This trade represents a 9.55% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, insider Robert H. Schingler sold 73,683 shares of the firm's stock in a transaction that occurred on Monday, April 6th. The stock was sold at an average price of $35.07, for a total transaction 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 SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders own 16.42% of the company's stock.

Hedge Funds Weigh In On Planet Labs PBC

A number of hedge funds have recently added to or reduced their stakes in the stock. Western Wealth Management LLC acquired a new stake in shares of Planet Labs PBC during the 1st quarter worth $28,000. Oddo BHF Asset Management Sas acquired a new stake in shares of Planet Labs PBC during the 1st quarter worth $5,472,000. Amundi lifted its position in Planet Labs PBC by 30.7% during the first quarter. Amundi now owns 20,280 shares of the company's stock worth $567,000 after purchasing an additional 4,765 shares during the period. EverSource Wealth Advisors LLC lifted its position in Planet Labs PBC by 243.6% during the first quarter. EverSource Wealth Advisors LLC now owns 2,965 shares of the company's stock worth $83,000 after purchasing an additional 2,102 shares during the period. Finally, California State Teachers Retirement System lifted its position in Planet Labs PBC by 22.6% during the first quarter. California State Teachers Retirement System now owns 285,952 shares of the company's stock worth $7,992,000 after purchasing an additional 52,806 shares during the period. Institutional investors own 41.71% of the company's stock.

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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