Investors who owned stocks in the past seven months generally experienced some big gains. In fact, Since Sept. 30, 2020, the SPDR S&P 500 SPY total return is 25.5%.
On that day, Palantir Technologies Inc PLTR made its public debut, and IPO investors have significantly outperformed the market in the seven-plus months that have followed.
Palantir’s Big Debut: Data analysis software pioneer Palantir was founded in 2003 and made the move to go public 17 years later. It priced its direct listing at $7.25 per share, but the stock opened its first day of trading at $10. While an initial market cap of $16.5 billion was impressive, it was still significantly lower than the $20.4 billion valuation the company had during a 2015 private fundraising round.
On its first day of trading, Palantir shares traded as high as $11.42 before closing the day at $9.50. The stock spent much of its first month under its $10 opening price. In late October, Palantir shares took off like a rocket. Palantir hit $20 in late November and $30 just days later.
Much of the momentum came after Palantir reported impressive 52% revenue growth in its first ever quarterly earnings report as a public company on Nov. 12.
Palantir hit its 2020 high of $33.50 in November before cooling off to close out the year. By the end of December, the stock was back below $25.
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Recent News: The turn of the calendar marked the beginning of a rally to new highs for Palantir. In fact, the stock made is as high as $45 in late January after becoming a darling of Reddit’s WallStreetBets community.
Unfortunately, the company’s fourth-quarter earnings report, which included an 80-cent EPS loss, wasn’t as bullish as its previous report.
The stock dropped back below $30 per share following the earnings report and has continued drifting lower to around $22.50 today.
2021 And Beyond: Still, at the stock’s current level, $1,000 worth of Palantir IPO stock at the $7.25 direct listing price would be worth about $3,108 today.
Looking ahead, analysts see limited additional gains ahead in the next 12 months. The average price target among the seven analysts covering the stock is $23 suggesting 1.8% upside from current levels.
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