Palantir CEO Plans $1.2 Billion Stock Sale Amid Soaring Prices

DENVER, Colo. — Palantir Technologies CEO Alex Karp has announced plans to sell $1.2 billion worth of the company’s stock as shares experience a significant rally. This stock sale will take place under a Rule 10b5-1 trading plan, which the U.S. Securities and Exchange Commission (SEC) approved, allowing Karp to sell up to 9,975,000 shares through September 12 of this year.

Currently trading at $123 per share, Karp’s planned sale would result in net proceeds of approximately $1.23 billion. However, an earlier version of the trading plan would have allowed him to sell nearly five times that amount — 48.9 million shares valued at $6.01 billion.

The use of a 10b5-1 plan seeks to mitigate any appearance of insider trading by ensuring transactions are conducted without the influence of nonpublic information. Karp’s decision to sell comes at a time when Palantir’s stock has gained roughly 63% this year, culminating in an impressive 12-month gain of 427%.

This dramatic rise in share price is driven by the company’s strong financial outcomes and its strategic focus on artificial intelligence (AI), which has resonated positively with investors. In contrast, the S&P 500 has only increased by about 4% over the same period.

In 2024 alone, Karp sold $1.95 billion in PLTR stock, partially to fulfill tax obligations related to the vesting of restricted stock units. While the latest performance results reflect substantial gains, current market evaluations indicate that analysts maintain a consensus Hold rating for Palantir stock. Out of 17 Wall Street analysts, only two rate it as a Buy, 10 as a Hold, and five as a Sell.

With a target price of $88.60, analysts suggest potential downside risk of approximately 28.43% from current trading levels, raising questions about the company’s future growth potential amid concerns over leadership changes and stagnant performance.

As the market responds to these developments, investors and analysts alike will closely monitor the outcomes of Karp’s stock sale and its implications for Palantir Technologies moving forward.