Palantir insider sells tens of millions in shares after month-long pause

A Palantir Technologies insider sold shares valued in the tens of millions of dollars on July 2, ending a month-long pause in insider transactions at the data analytics company.

The transaction was disclosed in a regulatory filing with the Securities and Exchange Commission, according to a person familiar with the matter. The filing did not identify the specific insider or the exact dollar amount, though the trade was classified as a sale in the tens of millions.

Palantir shares closed at $132.54 on July 2, up from a June low of $106.37 but still down 27% year to date from a December peak of $207.52. The stock trades at a trailing price-to-earnings multiple of 145, one of the highest in the software sector, according to exchange data.

The July 2 sale follows a wave of insider disposals in May. Chief Executive Officer Alex Karp sold 397,744 Class A shares on May 20 at prices between $132 and $136, according to prior filings. President Shyam Sankar and Director Stephen Cohen also sold large blocks the same day. The company has characterized those sales as part of planned 10b5-1 trading plans executed after scheduled restricted stock unit vesting.

Palantir reported first-quarter revenue of $1.63 billion, up 85% from a year earlier, and raised its full-year revenue guidance to $7.65 billion to $7.66 billion. The company's Rule of 40 score reached 145%, a level Karp said was matched only by Nvidia Corp., Micron Technology Inc. and SK Hynix Inc.

The insider sale adds to the bearish narrative around Palantir's valuation. Short seller Michael Burry in June called the stock "a sand castle supported only by AI applications narrative," according to a Reddit post that circulated widely. The stock has rebounded 20% from its June low but remains well below its 52-week high.

For holders, the July 2 transaction extends a pattern of insider selling that may weigh on sentiment as the company heads into second-quarter earnings, expected in early August. The Q2 revenue guidance range of $1.797 billion to $1.801 billion implies a deceleration from the first quarter's 85% growth rate, a key metric investors will watch.

This article is for informational purposes only and does not constitute investment advice.