What's Going On With Palantir's Stock?

Palantir Technologies Inc. PLTR shares are trading higher Monday after Argus Research analyst Joseph Bonner initiated coverage on the stock with a Buy rating and a price target of $29.

The Details:

Bonner noted that Palantir has expanded into the commercial sector with data management and analytics platforms and expects the commercial segment to continue to be its future growth driver. The analyst also highlighted growth in Palantir's government business segment, including its $178.4 million contract covering the development of prototypes of its battlefield Tactical Intelligence Targeting Access Node (TITAN) program.

Argus noted that while the stock is priced at a premium, the firm sees Palantir as a highly differentiated software company with significantly improving profitability in recent quarters. Bonner gave a five-year average earnings growth rate forecast of 19%.

According to data from Benzinga Pro, Palantir shares are trading above the stock’s 50-day moving average of $22.08 and are approaching its 52-week high of $27.50. 

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Should I Sell My PLTR Stock?

When deciding to hold on to or sell a stock, investors should consider their time horizon, unrealized gains and total return.

Shares of Palantir Technologies have increased by 54.97% in the past year. An investor who bought shares of Palantir Technologies at the beginning of the year would make a profit of $7.89 per share if they sold it today. The stock has risen 13.18% over the past month, meaning an investor who bought shares on May 1 would see a capital gain of $1.92.

Palantir Technologies shares have an all-time high of $28.77, representing 17.57% upside from current levels.

Investors may also consider market dynamics. The Relative Strength Index can be used to indicate whether a stock is overbought or oversold. Palantir Technologies stock currently has an RSI of 67.0, indicating neutral conditions.

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PLTR Price Action: According to Benzinga Pro, Palantir Technologies shares are up 5.79% at $24.94 at the time of publication Monday.

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