Cathie Wood’s Ark Investment Management has loaded up on shares of data analytics software company Palantir Technologies after they slid following Tuesday’s earnings report.
Ark exchange-traded funds bought 1,483,975 shares Tuesday, worth about $36 million at Tuesday’s close. Then they bought 1,251,850 shares Wednesday, worth about $28 million at Wednesday’s close.
The whole kitty was worth about $62 million Thursday, with Palantir recently trading at $22.80, up 1%.
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The ETFs that bought shares are ARK Innovation ETF (ARKK) - Get ARK Innovation ETF Report, ARK Autonomous Technology & Robotics ETF (ARKQ) - Get ARK Industrial Innovation ETF Report, ARK Next Generation Internet ETF (ARKW) - Get ARK Next Generation Internet ETF Report and ARK Genomic Revolution ETF (ARKG) - Get ARK Genomic Revolution ETF Report.
After the earnings report, RBC Capital analyst Rishi Jaluria downgraded Palantir to underperform from sector perform with a price target of $19, down from $25.
The analyst cited the company's "mixed" third quarter results with deceleration in the government business, while noting that its commercial acceleration that is being fueled by SPAC investments is "unsustainable."
Jaluria added that his confidence in Palantir’s 30% growth is reduced, and he sees the stock as fully valued.
Citi analyst Tyler Radke reiterated his sell rating and $18 price target on the stock. Palantir's decelerating growth "came into center view" in the third quarter, with weakness in both commercial and government, he said according to the Fly.
Jefferies analyst Brent Thill was more upbeat, keeping his buy rating and $31 price target for the stock.
“PLTR delivered ahead of expectations on both top and bottom lines … and operating margin, although the magnitude of the top-line beat fell short compared to Q2,” he wrote in a commentary.