Palantir Technologies (NASDAQ:PLTR) Shares Down 11.6% Following Analyst Downgrade

Palantir Technologies Inc. (NASDAQ:PLTR)’s share price dropped 11.6% during trading on Wednesday after DA Davidson lowered their price target on the stock from $215.00 to $180.00. DA Davidson currently has a neutral rating on the stock. Palantir Technologies traded as low as $135.68 and last traded at $139.54. Approximately 111,918,500 shares were traded during trading, an increase of 137% from the average daily volume of 47,318,438 shares. The stock had previously closed at $157.88.

Several other research analysts also recently commented on PLTR. Raymond James Financial reissued a “market perform” rating on shares of Palantir Technologies in a research note on Tuesday, November 4th. HSBC lifted their price target on shares of Palantir Technologies from $181.00 to $197.00 and gave the company a “hold” rating in a report on Wednesday, November 5th. CICC Research increased their price objective on shares of Palantir Technologies from $128.00 to $150.00 and gave the company a “neutral” rating in a research note on Wednesday, November 12th. Citigroup boosted their target price on shares of Palantir Technologies from $235.00 to $260.00 and gave the stock a “buy” rating in a research note on Tuesday. Finally, Truist Financial started coverage on shares of Palantir Technologies in a report on Tuesday, January 6th. They set a “buy” rating and a $223.00 price target for the company. One investment analyst has rated the stock with a Strong Buy rating, eleven have assigned a Buy rating, twelve have assigned a Hold rating and two have assigned a Sell rating to the company. Based on data from MarketBeat, the stock has an average rating of “Hold” and a consensus price target of $191.95.

Insider Activity at Palantir Technologies

In other news, insider Shyam Sankar sold 149,872 shares of the stock in a transaction dated Thursday, November 20th. The stock was sold at an average price of $163.99, for a total value of $24,577,509.28. Following the completion of the sale, the insider owned 642,786 shares of the company’s stock, valued at approximately $105,410,476.14. This represents a 18.91% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is accessible through the SEC website. Also, insider David A. Glazer sold 15,557 shares of Palantir Technologies stock in a transaction that occurred on Thursday, November 20th. The stock was sold at an average price of $163.99, for a total value of $2,551,192.43. Following the completion of the transaction, the insider directly owned 415,612 shares in the company, valued at approximately $68,156,211.88. This represents a 3.61% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 1,023,844 shares of company stock valued at $167,455,085 in the last quarter. Insiders own 9.23% of the company’s stock.

Key Headlines Impacting Palantir Technologies

Here are the key news stories impacting Palantir Technologies this week:

• Positive Sentiment: Blowout Q4 results and lifted guidance — Palantir reported ~ $1.4B revenue (+70% YoY), beat EPS estimates and issued 2026 guidance above Street expectations, which underpinned recent buy‑side momentum. Earnings coverage
• Positive Sentiment: Analyst upgrades and higher targets — Multiple firms (HSBC, William Blair, Northland, Deutsche Bank and others) raised ratings or price targets after the quarter, giving near‑term buy signals and institutional support. Analyst coverage
• Positive Sentiment: Commercial momentum and partnerships — Management highlighted accelerating U.S. commercial revenue and record large‑deal closings; Palantir also announced a partnership with Cognizant to deploy Foundry/AIP into healthcare and enterprise workflows. Cognizant partnership
• Neutral Sentiment: Research estimate updates — Firms like Northland published updated multi‑quarter EPS/target models (Outperform/$190), useful for modeling but not universally decisive. Northland note
• Neutral Sentiment: Minor insider selling disclosed — A director sold 400 shares (additional past small sales exist); the sizes disclosed are modest but worth monitoring for trend changes in insider activity. SEC filing
• Negative Sentiment: Valuation friction — Commentators and some analysts warn Palantir’s multiples remain very high (forward and trailing P/Es), creating vulnerability to mean reversion despite rapid growth. Contrarian view
• Negative Sentiment: AI sector pullback and profit‑taking — A broader rotation away from high‑beta AI winners and short‑term profit taking trimmed gains; that dynamic amplified selling after the post‑earnings run. Sector weakness
• Negative Sentiment: Some sell‑side caution — A few firms (e.g., DA Davidson) trimmed near‑term expectations or flagged the need for sustained execution versus lofty consensus, adding pressure amid volatile volume. DA Davidson note

Institutional Investors Weigh In On Palantir Technologies

Institutional investors have recently modified their holdings of the company. Norges Bank acquired a new stake in Palantir Technologies during the 2nd quarter worth about $3,307,457,000. Vanguard Group Inc. boosted its position in shares of Palantir Technologies by 4.0% during the 3rd quarter. Vanguard Group Inc. now owns 213,886,270 shares of the company’s stock valued at $39,017,133,000 after purchasing an additional 8,168,604 shares in the last quarter. State Street Corp grew its stake in Palantir Technologies by 7.2% during the third quarter. State Street Corp now owns 101,258,899 shares of the company’s stock worth $18,471,648,000 after purchasing an additional 6,777,771 shares during the period. Amundi increased its holdings in Palantir Technologies by 38.7% in the third quarter. Amundi now owns 15,679,158 shares of the company’s stock worth $2,814,879,000 after purchasing an additional 4,373,201 shares in the last quarter. Finally, Wellington Management Group LLP lifted its stake in Palantir Technologies by 228.0% in the third quarter. Wellington Management Group LLP now owns 5,182,560 shares of the company’s stock valued at $945,403,000 after buying an additional 3,602,471 shares during the period. 45.65% of the stock is owned by institutional investors.

Palantir Technologies Stock Performance

The stock has a market capitalization of $309.87 billion, a P/E ratio of 206.37, a PEG ratio of 3.35 and a beta of 1.64. The business has a fifty day simple moving average of $174.49 and a 200-day simple moving average of $173.19.

Palantir Technologies (NASDAQ:PLTR) last released its earnings results on Monday, February 2nd. The company reported $0.25 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.23 by $0.02. The company had revenue of $1.41 billion for the quarter, compared to the consensus estimate of $1.34 billion. Palantir Technologies had a net margin of 36.31% and a return on equity of 23.81%. Palantir Technologies’s quarterly revenue was up 70.0% compared to the same quarter last year. During the same quarter in the previous year, the company earned $0.14 EPS. On average, sell-side analysts anticipate that Palantir Technologies Inc. will post 0.31 earnings per share for the current year.

About Palantir Technologies

Palantir Technologies is a software company that develops data integration, analytics and operational decision-making platforms for government and commercial customers. Founded in 2003 by a team that included Alex Karp and Peter Thiel, Palantir has grown into a provider of enterprise-scale software designed to help organizations integrate disparate data sources, build analytic models and drive operational workflows. The company went public in 2020 and continues to position its products around large, complex data projects where security, provenance and real-time collaboration are important.

Palantir’s product portfolio centers on a small number of core platforms.