Hedge funds are known for beating the average market returns, making it crucial to keep a tab on their stock transactions. Using TipRanks’ Hedge Fund Trading Activity tool (which analyzes data from Form 13-Fs to offer hedge fund signals), Palantir Technologies (NYSE:PLTR) emerges as an artificial intelligence (AI) stock these experts favor.
Palantir provides software platforms with applications in the commercial and government sectors.
Hedge Funds Accumulate PLTR Stock
It’s worth noting that the rapid deployment of AI across industries and Palantir’s launch of its AI platform (AIP) have led the company to win large deals and boost its margins. This, in turn, has driven its share price higher. For instance, PLTR stock is up about 31% year-to-date. Moreover, it has gained more than 189% in one year.
Despite this significant appreciation in value, the Hedge Fund Confidence Signal is Positive for PLTR stock based on the activity of 18 hedge funds. Hedge funds increased their PLTR holdings by 3.6M shares in the last quarter. Gotham Asset Management’s Joel Greenblatt and Philippe Laffont of Coatue Management significantly increased their holdings in PLTR stock.
Is PLTR a Buy, Sell, or Hold?
While hedge funds are optimistic about PLTR stock, Wall Street maintains a bearish outlook. Palantir stock sports a Moderate Sell consensus rating based on two Buys, five Holds, and six Sell recommendations.
Given the recent rally, the analysts’ average PLTR stock price target of $19.67 implies 12.66% downside potential from current levels.
Bottom Line
Palantir is well-positioned to capitalize on the AI demand. The launch of AIP has accelerated the rate of new customer acquisition. Moreover, during the Q4 conference call, the company reported that the number of US commercial deals with a contract value of $1 million or more doubled year-over-year. However, the stock has gained quite a lot, implying that positives are already priced in.
While PLTR stock has a Very Positive signal from hedge funds, Wall Street is bearish. This indicates that investors should not rely on a few metrics for investment decisions. Investors can leverage TipRanks’ Experts Center tools to gather comprehensive insights and make informed investment choices.