Palantir Stock Drops As Insiders Cash In: Can The Bulls Hold The Line?

Zinger Key Points

Palantir stock plunged 16% in five days as insiders offloaded millions of shares, raising investor concerns.
Despite short-term bearish signals, technicals hint at long-term bullish potential if key levels hold.
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Palantir Technologies Inc. PLTR has been on a rollercoaster, surging over 268% in the past year and still up 20% year to date.

But the stock has taken a sharp turn, down more than 16% in the past five days, as a wave of insider selling raises eyebrows.

Insider Selling Raises Red Flags

Since Feb. 18, multiple top executives, including CEO Alexander Karp and President Stephen Cohen, have offloaded significant shares, according to Yahoo Finance data. Karp alone sold over $44 million worth of stock at prices ranging from $96.43 to $108.28 per share, while Cohen's sales totaled more than $69 million.

Chief Technology Officer Shyam Sankar also cashed out nearly $38.4 million in shares.

With insiders collectively unloading hundreds of millions of dollars worth of stock, investors are left wondering: Do they know something the market doesn't?

Palantir Stock Technicals Show A Tug-Of-War

Chart created using Benzinga Pro

From a technical perspective, Palantir stock trend is showing cracks. The stock, at $90.37 is well below its eight-day and 20-day simple moving averages of $100.31 and $103.05, respectively, signaling short-term bearish momentum.

A glimmer of optimism remains as the stock is still trading above its 50-day moving average of $86.21 and its 200-day moving average of $49.23, which suggests a longer-term bullish trend.

The Moving Average Convergence Divergence (MACD) indicator at 2.71 leans bullish, while the Relative Strength Index (RSI) of 44.87 indicates the stock is approaching oversold territory but not quite there yet.