Shares of Palantir Technologies fell to $16.11 during today's evening trading session -- a decrease of -5.6% that still sees the stock 13.05% above its average analyst target price of $14.25. So there may be further downside for the Information Technology stock, which analysts rate as hold on average. Current target prices range from $5.0 to 25.0 dollars per share.
Palantir Technologies's short interest can give us an idea of what future price movements the market expects from the stock. The short interest is the percentage of shares that are tied up in short positions, which will provide gains to the investor only if the stock price falls. The stock's short interest is 8.9% which seems to indicate a mixed sentiment on PALANTIR TECHNOLOGIES
Short selling involves borrowing shares and then selling them at current market prices. In the successful version of the strategy, the shares are purchased at a lower price at some time in the future. The investor then returns the shares to the lender, and keeps the profit made on the sell/buy transaction.
We can make inferences about the market sentiment surrounding Palantir Technologies by analyzing its rate of institutional ownership. If institutions such as hedge funds and pension funds are the primary shareholders of a corporation, it most likely means that its shares are a good investment according to those institutions' analysts.
At 35.3%, the rate of institutional ownership is average, indicating that a sufficient number of institutions have concluded that it is a stable investment. Beware, however, that the rate of institutional ownership could also indicate an ongoing proxy battle or takeover attempt -- so you should also periodically check the news about a stock whose institutional ownership you are tracking.
To sum up, Palantir Technologies is probably the subject of mixed market sentiment because of an analyst belief that shares are overpriced, a hold rating, an above average percentage of its shares sold short, and only a small number of institutional investors. At Market Inference, we believe that any investment decision should be preceded by an in-depth analysis of the company's fundamental values and a comparison with similar stocks.
Here's a snapshot of some important facts to keep in mind about PLTR:
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The stock has trailing 12 month earnings per share (EPS) of $-0.02
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Palantir Technologies has a trailing 12 month Price to Earnings (P/E) ratio of -805.5 compared to the S&P 500 average of 15.97
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The company has a Price to Book (P/B) ratio of 11.72 in contrast to the S&P 500's average ratio of 2.95
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Palantir Technologies is a Technology company, and the sector average P/E and P/B ratios are 27.16 and 6.23 respectively
