Palantir Technologies Inc. (NASDAQ:PLTR) CEO Alex Karp executed a massive $62.7 million stock sale over two days, according to Securities and Exchange Commission Form 4 filings. The transaction comes as the data analytics company faces mounting valuation pressure and increased short interest.

Check out the current price of PLTR stock here.

Major Executive Liquidation

Karp sold 409,072 shares between August 20-21, at prices ranging from $142.46 to $157.56 per share. The sales were executed through automatic transactions to cover tax withholding obligations following restricted stock unit vesting.

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Karp has now sold approximately $2 billion worth of PLTR stock over the past two years, representing significant executive liquidation.

Valuation Under Fire

Citigroup analyst Tyler Radke warned that PLTR’s 70x forward revenue multiple remains “too rich” despite recent declines. The stock trades at $158.74, up 397% year-over-year, giving it a $376 billion market capitalization with a staggering 527 price-to-earnings ratio. Average daily volume stands at 69.37 million shares.

Citron Research initiated a short position, targeting a $40 fair value--74% below current levels. The firm compared PLTR unfavorably to competitor Databricks, noting the private company’s superior metrics: 15,000 customers versus PLTR’s 849, and 50% revenue growth versus PLTR’s 45%.

Market Context and Outlook

Despite insider selling pressure, PLTR on Friday surged on the Federal Reserve’s dovishness. Lower interest rates support high-growth valuations by reducing discount rates on future earnings.

Wedbush analyst Dan Ives maintains his bullish stance, calling PLTR "the poster child of the AI revolution" and viewing current weakness as a buying opportunity.

Price Action: According to Benzinga Pro data, PLTR stock closed Friday at $158.74, up 1.64%, and climbed another 0.59% in after-hours trading to $159.68, marking a 111.12% gain year-to-date.

With a strong Momentum in the 98th percentile, Benzinga’s Edge Stock Rankings indicate that PLTR has a positive price trend across all time frames. Know how its momentum lines up with other well-known names.

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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.