Katie Wood, General Director and Chief Investment Director of Ark Investment Management (Arkk), attracted attention after the first week of January 2025 unloaded Palantir (Nasdaq: PLTR).
Sale, in which 221 950 shares of Wood’s Ark Funds are unloaded from January 3 to 7, occurs as fears compared to a high appraisal of a steamer after its sharp rally in 2024.
Despite the pruning of this position, the steamer remains the main holding in Ark Innovation ETF, which is 5.7% of the fund’s portfolio, according to data from Stolk.
The shares, however, fought at the beginning of 2025. As of the closing of the market on January 10, Palantir shares are traded at 67.26 US dollars, which reflects a five -day loss of 10%. On January 13, Pramarket Trading continued to decrease, decreasing by 4.16%.
Consistent pruning of Katie Wood
The last sale of Wood follows the consistent pruning scheme in December 2024, when the ARK funds sold significant parts of the Palantir shares.
On December 6, the Wood Foundation sold 95,570 shares in the amount of $ 7.3 million. Later, December 19, 33 402 shares were sold for $ 2.5 million, and then from December 23 to 26 in the amount of 13.8 million dollars. USA in the amount of 13.8 million dollars. USA.
These sales, combined with aggressive insider sales of Palantir leaders, including CEO Alex Carp, caused concerns about an increased assessment of the action.
For example, only Karp sold shares worth more than 1.2 billion dollars at the end of 2024, while Chairman Peter Til unloaded more than $ 1 billion for the same period.
More recently, insider Ryan D. Taylor made a major deal, selling 483,987 shares and earnings of approximately 36.05 million dollars. The United States from the sale, according to Finbold.
Strong prospects for the growth of a steamer
Despite the recent rollback, the steamer was one of the best NASDAQ performers in 2024, and the shares were impressive 365% per year.
The rally was caused by reliable demand for its solutions for data analysis with AI and inclusion in the S&P 500 index, which increased the mood of investors.
Palantir’s Platform (AIP) played a decisive role in growth, and its commercial income in the US segment increased by 54% in annual calculus during the 3rd quarter of 2024. The government segment also showed reliable results, and income increased by 40% compared to the same period.
The success of the company is due to its ability to conclude significant contracts, including 104 transactions worth more than $ 1 million. The United States each in the 3rd quarter of 2024, which increased the total cost of the contract (TCV) to 1.1 billion dollars. USA.
The strong operating margin of the steamer, which improved to 38% in the third quarter with 29% a year earlier, further emphasizes its reliable financial health. Moreover, from 4.6 billion dollars. The United States in cash and without debt as of the 3rd quarter of 2024, the company has flexibility to invest in growth opportunities, engage in acquisitions and implement innovations.
Assessment of fears
Although the prospects for the growth of a steamer are convincing, his assessment caused fears. Promotions are currently traded with the price of the sale price (P/S) in 56.44x, and the estimated ratio of the price of profit (P/E) -146.15x, which significantly exceeds the average industry values, according to data from Stoganaliz.
Morgan Stanley (NYSE: MS) recently reduced the shares to “insufficient weight” with a target price of $ 60.
The analyst of Sandit Singh emphasized that the current market price of a steamer is already factors in an ambitious 10-year growth trajectory with a 30 percent annual growth rate (CAGR) and 41% and edges of free cash flow (FCF), which may be difficult to achieve.
While the long -term prospects for the growth of the steamer remain promising, his sharp rally made him vulnerable to increase volatility.
For investors, the potential for further growth should be carefully weighed with the risk of a significant rollback, especially if the company’s effectiveness does not live up to its ambitious growth expectations.
Shown image through Shutterstock
