Palantir Technologies Inc . (NYSE:PLTR) director Peter Thiel has recently sold a significant portion of his holdings in the company, according to the latest filings. Thiel, a renowned entrepreneur and investor, disposed of shares amounting to approximately $273.5 million in a series of transactions.
The sales took place over three days, with prices per share ranging from $20.784 to $21.3303. On May 8, Thiel sold 6,285,833 shares at an average price of $21.3303. The following day, he sold an additional 1,669,411 shares at an average of $21.2601. The final sale occurred on May 10, where 5,000,000 shares were sold at an average price of $20.784.
These transactions were carried out under a preexisting trading plan that Thiel had set up, which allows company insiders to sell their stock at predetermined times to avoid any accusations of insider trading based on material non-public information. The plan, known as a Rule 10b5-1 trading plan, was adopted by Thiel on December 12, 2023.
The shares sold by Thiel were held by entities in which he has beneficial ownership. Specifically, Rivendell 7 LLC and STS Holdings II LLC were named in the footnotes of the filing as holding the shares sold on May 8 and May 10, respectively.
Despite the large sale, Thiel still holds a substantial amount of Palantir stock. Following the transactions, the remaining shares owned by entities associated with Thiel were not disclosed in the filing as being part of any sale during the covered dates. The footnotes also indicated that Thiel is the sole beneficial owner of PLTR Holdings LLC and Rivendell 25 LLC, which continue to hold Palantir shares.
Investors often monitor insider transactions for insights into the perspectives of company executives and directors regarding their firm's stock. Thiel's recent sales are part of the public record and are required to be disclosed by Securities and Exchange Commission rules, providing transparency into the trading activities of corporate insiders.
InvestingPro Insights
As Palantir Technologies Inc. (NYSE:PLTR) faces the spotlight with Peter Thiel's notable share disposal, the company's financial health and market performance present a mixed picture. According to InvestingPro data, Palantir holds a market capitalization of $45.92 billion, reflecting its significant presence in the tech sector. The company's P/E ratio stands at a high 149.78, suggesting investors have high expectations for future earnings growth. In line with this, the PEG ratio, which indicates the stock's value while accounting for earnings growth, is at 0.81—potentially pointing to undervaluation if Palantir can sustain its growth trajectory.
InvestingPro Tips highlight that Palantir is expected to see net income growth this year and analysts have revised their earnings estimates upwards for the upcoming period, which could justify the current earnings multiple to some extent. Additionally, the company's gross profit margins remain impressive at 81.16%, indicating strong operational efficiency. These insights could provide investors with a degree of confidence amidst the recent insider selling activity.
For those considering an investment in Palantir, using the coupon code PRONEWS24 will grant an additional 10% off a yearly or biyearly Pro and Pro+ subscription at InvestingPro. This offers access to further insights, including 6 additional InvestingPro Tips that could help investors make more informed decisions. For example, Palantir's ability to hold more cash than debt on its balance sheet is an important consideration for assessing the company's financial stability. Moreover, the company's liquid assets exceed its short-term obligations, which is another positive indicator of its financial health.
While the stock has experienced significant volatility recently, with a one-week price total return of -11.7%, it's worth noting that Palantir's year-to-date price total return stands at 19.98%, and an impressive one-year price total return of 108.5%, showcasing its strong market performance over a longer period. This context is crucial for investors weighing the impact of Thiel's share sales against the company's overall financial performance and market valuation.
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