Palantir stock has been on a downward trend over the last two months. This week, shares of the software company focused on big data slid a total of about 9% on the heels of some analyst price target cuts.
RBC capital cut its price target to $15 from $19 per share, maintaining an Underperform rating.
Jeffries kept a Buy rating on the stock, but slashed its price target to $24, from $31.
Over the last two months the stock is down about 35% from its $26 closing price on November 5, 2021.
Software names have underperformed the broader markets amid an increasing possibility of Federal Reserve rate hikes this year. Rising U.S. treasury yields have also recently put pressure on high growth tech names.
While investors have been selling, Cathie Wood’s Ark Invest Fund has been buying. On Thursday her fund scooped up 430,339 shares at an estimated value of about $7.2 million.
The company, co-founded by billionaire Peter Thiel, went public through a direct listing in September of 2020. On its first day of trading shares closed at $9.50 each. The stock reached an all-time intraday high of $45 in January 2021.
Palantir garnered increased attention since going public, mainly because of the data sensitive services it provides to government agencies and other organizations and its corporate governance structure which it has clarified through amendments in its S-1 filing.
Last year Palantir joined the ‘meme’ group of speculative stocks which some retail traders follow. It has at times been volatile.
The stock has 3 Buy, 3 Hold and 4 Sell analyst ratings, with an average price target of $22.38.
Ines is a markets reporter covering stocks from the floor of the New York Stock Exchange. Follow her on Twitter at @ines_ferre
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