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Palantir Technologies (PLTR) Stock Price and Forecast: ARK Invest boosts again

  • Palantir Technologies shares up 4% on Thursday.
  • PLTR shares boosted by another Cathie Wood ARK Invest purchase.
  • Palantir shares are a retail favourite with a heavy social media following. 

Update March 4, 1630GMT: Shares in Palantir bounced strongly on Thursday as Cathie Woods ARK Invest buys yet more shares in the security technology firm. ARK Invest bought another 2.6 million shares in PLTR on Wednesday. It is unclear if any of these shares are sales by executives on the expiry of the lock up period. Palantir founders and senior executives had been prevented from selling shares in the company until after Q4 2020 results.


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Shares in Palantir are in focus again on Monday after Benzinga reports that Cathie Wood's ARK Invest once again added more shares to earlier purchases. ARK Invest reportedly added a further 3.3 million shares in Palantir. 

PLTR Stock news

Palantir shares have been under pressure of late as the general sell-off in tech spreads to all sectors and not just isolated to big tech. Stellar gains from the March 2020 lows, a switch to reopening consumer cyclical stocks, and fears over inflation have all hit technology stocks.

Palantir reported results on Thursday, February 16 which had disappointed investors. Palantir reported an unexpected loss but generated strong revenue growth with a strong outlook for the years ahead.

Palantir's results showed a loss from operations of $156.6 million. Palantir did beat revenue estimates with $322 million versus an estimated $300 million. 

Palantir shares slipped after the results release closing February 16 down nearly 13% at $27.84. However, the shares quickly received a number of catalysts. Firstly Goldman Sachs issued a strong upgrade to PLTR shares on February 17. Goldman upgraded the stock from neutral to buy and increased their price target from $13 to $34.  "With improving visibility into near- and long-term growth, we believe PLTR should trade more in line with 30%+ growth businesses, which are trading at 44x CY21 sales, our new target multiple for PLTR on SNTM sales," Goldman said. 

Secondly Cathie Wood of ARK Invest on Thursday, February 18 posted that they had purchased 5.2 million shares in Palantir (PLTR). This was in addition to a purchase of 1.5 million shares posted on Tuesday, February 16. Palantir shares rallied 15% on February 19 to close at $29.

Now a third purchase, this time for 3.3 million shares has been attributed to ARK Invest.

PLTR Stock forecast

It is not clear if this purchase of 3.3 million shares included any lock-up sales. Senior executives and founders of Palantir had been prevented from selling any of their holdings until 3 days after the release of Q4 202 results. 

SEC filings do show insider selling as reported by various news services. Barrons reports that last week Palantir's leaders sold up to $112 million worth of PLTR stock.

PLTR Technical analysis

During Monday's pre-market PLTR shares are just testing resistance at $25.87. Shares are trading at $25.60 at the time of writing. Shares would also need to break above $28 to end the series of lower highs. 

PLTR

Previous updates

Update March 4: After a 32% drop witnessed in February, Palantir Technologies Inc (NYSE: PLTR) shares extended the rout for the third straight trading day of March, closing Wednesday 3.64% lower at $23.59. The shares of the data analytics specialist tracked the broader market sell-off, as Treasury yields rebounded on expectations of strengthening US economic recovery. Although in the post-market trading, the PLTR stocks jumped 5.30% to settle just below the $25 threshold. ARK Investment’s Cathie Wood failed to offer any insights on her recent addition of 3.4 million PLTR shares, in her Q&A session with Behzinga in the US last session.

Update March 3: Palantir Technologies Inc (NYSE: PLTR) shares are trading at around $24.50 on Wednesday, marginally higher. Stocks of the somewhat secretive data analytics firm are outperforming broader stock markets, but fail to impress enthusiastic investors who were used to stronger moves. Earlier in the week, PLTR received a boost from considerable investment by ARK Investment. The star company led by Cathie Woods seemed to have a "golden touch" after jumping onto Tesla and Bitcoin at near-perfect timings and scoring big wins for investors. Cathie Wood is to have a Q&A session with Benzinga at 1400 EST. 

Update March 2: Sometimes the hype comes from a frenzy on Reddit's WallStreetBets forum and at others, it comes from institutional investors instead. ARK Investment, run by media and tech-savvy Cathie Woods, has positively impacted Planatir Technologies Inc (NYSE: PLTR) shares. The star manager bought over 3.3 million shares, causing a ripple effect that is set to continue into Tuesday's trading. The firm founded by Peter Thiel among others is set for an increase of 1% according to premarket trading – on top of Monday's 3.8% gain. 

Update March 1: Palantir Technologies Inc (NYSE: PLTR) has been rising as a new month begins with news that Cathie Woods' Ark Investment has scooped up additional shares of the data analytics firm. Woods has been gaining a reputation of having a golden touch after successful ventures into Tesla and Bitcoin. At the time of writing, PLTR shares are changing hands above $25, an increase of over 5%. Its advance exceeds that of broader markets, which are recovering as yields calm down. 

The author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

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Author

Ivan Brian

Ivan Brian

FXStreet

Ivan Brian started his career with AIB Bank in corporate finance and then worked for seven years at Baxter. He started as a macro analyst before becoming Head of Research and then CFO.

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