Three Reasons Why Jeffries Told Investors to Stay Away from Palantir

ast few months, at the same time the share price continues to soar. For example, Alex Karp, the CEO of Palantir, has sold about 40 million shares in the past three months, translating to over $1.9 billion. This includes the recent selling of 18 million shares worth more than $1 billion in the past 14 days. He has lost around 20% of his overall stake, but still has authorization to sell an additional ~9 million shares up to May 2025. This could potentially lead to further pressure on the shares, as noted by Thill.

Another reason Thill suggests caution when it comes to Palantir is the change in ownership. After being included in the S&P 500, retail ownership declined by 7 points to 42%, while index ownership increased by 4 points to 25% and institutional ownership rose by 3 points to 27%. If more institutional investors buy the stock, it could lead to a more stable and less volatile price. While this may be good for long-term stability, less volatility is not always favored by retail traders and could potentially lead to lower stock prices in the future.

While Thill’s price target for Palantir is $28 per share, it’s worth noting that other analysts have differing opinions. Sixteen analysts give Palantir one-year price targets with an average price of $38.88, a high estimate of $75.00, and a low estimate of $11.00. The average target implies a downside of -39.58% from the current price of $64.35. By considering these various perspectives, investors can make more informed decisions about their investments in Palantir.