© Reuters Bank of America comments on insider trading at Palantir Technologies (PLTR)
By Michael Elkins
Bank of America reiterated a Buy rating on Palantir Technologies (NYSE:) after the technology company published its 10K annual filing.
Analysts wrote in a note, “Some investors negatively reacted to the post-earnings insider selling actions by CFO David Glazer and the Chief Revenue Officer. However, we found the volumes of those open market transactions to be in line with the relatively normal levels of the selling actions over the last year. We think this is relatively normal as fully diluted insider ownership is still 12.7% of PLTR shares outstanding (according to FactSet), which implies these actions could be higher than for any other company with lower level of insider ownership. “
The company is also dealing with several shareholder class action complaints filed in the September 2022-January 2023 timeframe. The complaints accuse PLTR and executives (current & former) of painting an excessively rosy picture of future revenue growth, failing to disclose a slowdown in the company’s growth, downplaying challenges in acquiring and retaining business, and failing to disclose the impact from investments in marketable securities. The 10K states that these class actions could result in substantial costs and a diversion of management’s attention and resources.
However, PLTR has not been able to estimate the reasonably possible loss or range of losses, if any, that may result from these matters because the litigation is in early stages.
Shares of PLTR are down 0.19% in early trading on Tuesday.