PLTR Crashes as Investors Bail Out

Palantir Technologies has moved -3.4% so far today on a volume of 24,331,939, compared to its average of 34,445,833. In contrast, the S&P 500 index moved -1.7%. Over the last 52 weeks, the stock moved -65.7%, with a high of $19.25 and a low of $6.04. During this time, the stock lagged the S&P 500 index by -47.7%. Palantir Technologies Inc. builds and deploys software platforms for the intelligence community in the United States to assist in counterterrorism investigations and operations. The large-cap Technology company has 3,712 full time employees and is based in Denver, CO. Palantir Technologies has not offered any dividends in the last year.

Snapshot of the Company's Financials:

2018-12-31 2019-12-31 2020-12-31 2021-12-31
Revenue (MM) $595 $743 $1,093 $1,542
Revenue Growth n/a 24.7% 47.2% 41.1%
Gross Margins 72.22% 67.36% 67.74% 77.99%
Gross Margins Growth n/a -6.73% 0.56% 15.13%
Operating Margins -104.71% -77.63% -107.41% -26.66%
Operating Margins Growth n/a 25.86% -38.36% 75.18%
Earnings Per Share $-1.17 $-1.02 $-1.2 $-0.27
EPS Growth n/a 12.82% -17.65% 77.5%
Free Cash Flow (MM) $-52 $-178 $-309 $321
FCF Growth n/a -242.8% -73.21% 204.01%
Net Debt / EBITDA 1.86 1.24 1.55 4.79

Basic Valuation Metrics Show Palantir technologies Is Overvalued:

Compared to the Technology sector's average of 26.5, Palantir Technologies has a trailing twelve month price to earnings (P/E) ratio of -24.9 and, based on its Eps guidance of 0.16, an expected P/E ratio of 39.3. The firm's price to earnings growth (PEG) is 5.93, which indicates that it is overvalued in terms of its expected rate of earnings growth. . Palantir Technologies's price to book (P/B) ratio is 5.5 compared to its sector average of 5.57.

There is Mixed market sentiment About Palantir Technologies:

13 analysts are following Palantir Technologies and have set target prices ranging from $4.5 to $15 per share. On average, they have given the company a rating of hold. At today's prices, PLTR is trading -31.12% away from its average analyst target price of $9.12 per share, implying an analyst consensus of strong upside potential for the stock. The company has an average amount of shares sold short since 7.0% of the company's shares are tied to short positions. Institutions own 35.0% of Palantir Technologies's shares, while the insider ownership rate stands at 11.33%. The biggest shareholder is the Vanguard Group, Inc. with a 7.96% stake in the company worth approximately $989,465,801.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.