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Wall Street Zen Downgrades Palladyne AI to Sell Amid Market Adjustments

Palladyne AI (NASDAQ: PDYN) received a downgrade from analysts at Wall Street Zen, shifting its rating from “hold” to “sell.” This decision, announced in a report on August 21, 2023, reflects growing concerns about the company’s stock performance amid fluctuating market conditions. Meanwhile, Jefferies Financial Group initiated coverage of Palladyne AI with a “hold” rating and set a price target of $8.00.

Despite the downgrade, the stock has seen fluctuating activity. As of Friday, Palladyne AI shares opened at $7.37, marking a 2.9% increase from previous trading sessions. The company’s stock has experienced significant volatility over the past year, with a 12-month low of $1.49 and a 12-month high of $14.95. The average rating for the stock stands at “Moderate Buy,” with a price target of $11.50, according to MarketBeat data.

Insider Trading Activity Raises Eyebrows

In related news, significant insider trading has been reported at Palladyne AI. Chief Technology Officer Denis Garagic sold 14,809 shares on August 21, 2023, at an average price of $7.42, totaling $109,882.78. Following this transaction, Garagic retains 584,859 shares valued at approximately $4.34 million, representing a 2.47% decrease in his stock ownership.

Another insider, Kristi Martindale, also sold shares on the same day. Martindale disposed of 6,406 shares for a total of $47,532.52, which reduced her ownership by 2.01%. In total, insiders sold 26,963 shares in the last three months, valued at $200,065, indicating that insiders own approximately 13.40% of the company’s stock.

Institutional Investors Adjust Holdings

Recent activity among institutional investors further illustrates the shifting landscape for Palladyne AI. PNC Financial Services Group Inc. acquired a new position in the company during the first quarter, valued at $35,000. Additionally, Osaic Holdings Inc. increased its stake by 94.3% in the second quarter, now holding 5,098 shares valued at $44,000.

The Police & Firemen’s Retirement System of New Jersey also entered a new position in Palladyne AI during the second quarter, worth $51,000, while Covestor Ltd raised its stake by an impressive 5,657.0%, now owning 14,047 shares valued at $83,000. Notably, the New York State Common Retirement Fund invested $92,000 in the company during the second quarter. Currently, institutional investors hold 26.02% of Palladyne AI stock.

Palladyne AI Corp. specializes in developing software that enhances the functionality of robotic systems in both stationary and mobile applications. The company’s advanced Artificial Intelligence (AI) and Machine Learning (ML) platform enables robots to observe, learn, and act in various environments, showcasing its potential in the rapidly evolving tech landscape.

As analysts and investors reassess Palladyne AI’s market position, the coming weeks will likely reveal more about the firm’s trajectory and the impact of recent trading activities on its overall performance.

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