![]() ![]() However, the long-term thesis for the company remains bullish. In the short term, there are some headwinds that PLTR stock will have to contend with. If you invested a large amount of money, now is the right time to book your profits by selling a small stake from your holdings. ![]() Palantir’s lock-up period is set to expire after the release of Q4 earnings. If other investors (not subject to the lock-up period) begin to sell in the days before the lock-up expires, it is a typical sign of shareholders taking short term profits before the stock price loses steam. It is not surprising to see a stock’s share price fall on the first day that the lock-up shares can be traded. Typically, if there is a sharp increase in the number of available shares, the stock price is pushed down. However, it’s a self-imposed practice to ensure that big investors do not flood the market with shares. The Securities and Exchange Commission (SEC) does not mandate this. Thus, it results in a permanent shift in the number of available shares in the marketplace. Upon completion of this period, these shareholders are then free to sell their existing shares. As part of the initial public offering (IPO) process, the remaining 80%-85% is almost always subject to a lock-up period, usually of 90 to 180 days, in which they have agreed not to sell any of their shares. When a firm goes public, the owners tend to sell roughly 15%-20% of the company. Lockup Expiration and What It Means for PLTR Stock If you purchased a nice amount of PLTR stock, it might be the right time to cash in before the lock-up date expires. Nonetheless, wait for shares to dip a bit before buying in. That makes it a must-have for your portfolio. The bottom line is the government and businesses will use the company’s tools to improve results. Its recent Demo Day was also a success, impressing analysts and industry experts alike. However, a company in the intersection of defense, policing, surveillance, big data, and AI, with large government contracts, is not your average overpriced tech stock.įurthermore, Palantir has won a plethora of important contracts recently, adding to its already impressive resume. Its average 12-month price target stands at $17.83 per share, implying a 44.4% downside to the current price. Out of six analysts at TipRanks covering the stock, only one has a bullish view. The latest data also reveals that short interest in the stock sits at about about 6% of the float. ![]()
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