Palantir Q3 Revenue Climbs 62.8%, EPS Tops Estimates and BoA Lifts Target to $255
Palantir Technologies reported Q3 revenue of $1.18 billion, up 62.8% year-over-year, and EPS of $0.21, $0.04 above consensus on November 3. Bank of America raised its price target from $215 to $255 and Robert W. Baird lifted its target to $200 while insiders sold over 1 million shares worth $164.6 million.
1. Apricus Wealth LLC Halves Palantir Stake
In its latest 13F filing, Apricus Wealth LLC disclosed a sale of 5,000 Palantir Technologies shares during the third quarter, reducing its holding by 50%. Following the divestiture, the firm now holds 5,000 shares, representing a position valued at approximately $912,000 as of quarter end. This strategic reduction marks Apricus Wealth’s most significant Palantir trade in recent history and may signal a cautious stance on the company’s mid-term growth prospects.
2. Broader Institutional Ownership Movements
Alongside Apricus’s sell-off, a diverse set of institutional investors adjusted their Palantir allocations in Q3. Tradewinds Capital Management increased its stake by 35.7%, adding 84 shares for a total of 319. Simon Quick Advisors more than doubled its exposure, purchasing 2,389 shares to bring its total to 4,016. Bell Bank modestly increased its position by 1.0% (+77 shares), while Unique Wealth LLC and PDS Planning added 89 and 312 shares respectively. Collectively, institutional and hedge fund ownership now stands at 45.65% of outstanding shares.
3. Analyst Rating Revisions and Consensus Targets
During the first week of November, five major brokerages raised and reaffirmed their guidance on Palantir. Bank of America elevated its target by 18.6% to $255 and assigned a Buy rating, while Robert W. Baird lifted its objective to $200 with a Neutral stance. Weiss Ratings maintained its Buy (B-) endorsement, and Raymond James reiterated a Market Perform rating. Jefferies, however, upheld an Underperform view. Across the street, aggregate data shows five Buy endorsements, sixteen Holds and two Sells, culminating in a consensus target of $172.28.
4. Recent Operating and Profitability Highlights
In its November quarter report, Palantir delivered $1.18 billion in revenue, outpacing the $1.09 billion consensus by 8.3% and driving 62.8% year-over-year growth. Adjusted earnings per share reached $0.21, topping estimates by $0.04. Gross margin expanded to 80.8%, and net margin improved to 28.1%. Return on equity climbed to 15.5%, underscoring operational leverage in both government and commercial segments. Management reiterated its full-year EPS guidance of $0.31, positioning the company for continued high-growth execution.