E Fund Management Hong Kong Co. Ltd. has significantly increased its holdings in Palantir Technologies Inc. (NASDAQ: PLTR), raising its stake by 348.3% during the third quarter of 2023. This information comes from the company’s recent 13F filing with the U.S. Securities and Exchange Commission (SEC). Following this acquisition, E Fund Management now owns 4,725 shares of Palantir, after purchasing an additional 3,671 shares during the period. The total value of E Fund Management’s investment in Palantir stands at approximately $862,000, making it the 29th largest holding in their portfolio.
Several other institutional investors have also adjusted their investments in Palantir. Vanguard Group Inc. increased its holdings by 3.6% in the second quarter, bringing its total to 205,717,666 shares, valued at approximately $28 billion. Truist Financial Corp raised its stake by 4.2%, now holding 537,000 shares worth about $73.2 million after acquiring an additional 21,809 shares. Additionally, Prentice Wealth Management LLC bought a new stake worth approximately $550,000, while Watershed Private Wealth LLC increased its holdings by 75.3%, now owning 7,798 shares valued at around $1.42 million. The State of Michigan Retirement System also raised its position by 1.3%, now owning 938,400 shares valued at approximately $127.9 million. Collectively, institutional investors and hedge funds own 45.65% of Palantir’s stock.
Analyst Ratings and Market Response
Palantir Technologies has been the subject of various analyst reports recently. Robert W. Baird raised their price target from $170.00 to $200.00 while maintaining a “neutral” rating. CICC Research also increased its price target from $128.00 to $150.00, citing a neutral outlook. DA Davidson followed suit, adjusting their target from $170.00 to $215.00, with a similar neutral rating. Mizuho and Zacks Research have also provided positive outlooks, with Zacks upgrading Palantir from a “hold” to a “strong-buy” rating.
As of now, analysts have mixed views on the stock. One has given a “Strong Buy” rating, six analysts have assigned a “Buy” rating, while sixteen have rated it as a “Hold” and two as a “Sell.” According to data from MarketBeat, Palantir Technologies has an average rating of “Hold” and a consensus target price of $174.69.
Key Developments Affecting Palantir
Several factors are influencing Palantir’s stock performance. Speculation that the company’s tools may have played a role in recent U.S. actions in Venezuela has heightened interest from both retail and institutional investors. This scenario has boosted stock prices as traders anticipate increased government demand for Palantir’s services, particularly in national security.
Truist Financial’s initiation of coverage with a “Buy” rating has further added to the stock’s momentum, with analysts calling Palantir a “best-in-class” AI asset. Renewed attention to the company’s valuation stems from strong revenue performance and improving margins, which have bolstered investor confidence in its potential for monetization within government and enterprise applications.
On the downside, some analysts caution about elevated trading multiples, which may render the stock vulnerable to profit-taking. Insider selling has also raised concerns; David A. Glazer sold 9,000 shares at an average price of $185.91, totaling $1.67 million, while Jeffrey Buckley sold 1,252 shares for about $197,190. Insiders have sold a total of 1,023,444 shares, valued at approximately $167.4 million, over the last quarter.
Palantir’s Financial Performance
Shares of Palantir opened at $179.71 on Wednesday. The company has experienced a 52-week range, with a low of $63.40 and a high of $207.52. The stock has a market capitalization of $428.33 billion, with a price-to-earnings (P/E) ratio of 427.89 and a price-to-earnings-growth (PEG) ratio of 4.38. Palantir Technologies recently reported quarterly earnings on November 3, 2023, posting earnings per share (EPS) of $0.21, exceeding analysts’ expectations of $0.17. The company’s revenue for the quarter reached $1.18 billion, surpassing forecasts of $1.09 billion and reflecting a 62.8% increase compared to the same quarter last year.
Founded in 2003 by figures including Alex Karp and Peter Thiel, Palantir Technologies specializes in software for data integration and analytics, serving both government and commercial sectors. The firm has established itself as a leader in enterprise-scale software, focusing on complex data projects that require robust security and real-time collaboration. Since going public in 2020, it has continued to innovate and adapt in the fast-evolving tech landscape.
