Peter Thiel cashes out $600 million in Palantir stock
- Peter Thiel sold approximately 16 million shares of Palantir, generating $600 million in gross proceeds.
- The sale occurred after Palantir joined the S&P 500, with its share price increasing significantly over the past year.
- Thiel's actions, along with those of other insiders, indicate a strategic move to capitalize on the company's rising stock value.
Peter Thiel, cofounder of Palantir, sold approximately 16 million shares of the company between Tuesday and Thursday, generating $600 million in gross proceeds. This sale occurred shortly after Palantir joined the S&P 500, with its share price reaching around $37, a significant increase of 150% from the previous year. Thiel's sales are part of a pre-established trading plan filed with the SEC, allowing him to sell up to 28.6 million shares by the end of 2025. Despite these sales, he retains about 110 million shares, representing roughly 5% of the company. Palantir, known for its data analysis capabilities and strong ties with the U.S. military, reported $2.5 billion in revenue for the year ending June 2024, with over 50% coming from government contracts. The company's recent success is attributed to its advancements in AI technology and the overall market enthusiasm surrounding AI developments. Thiel's previous significant sales occurred in 2021, coinciding with the company's all-time high share price. Additionally, Palantir's CEO, Alex Karp, has also been selling shares under a trading plan, offloading $230 million worth this month. Karp's sales reflect a broader trend among company insiders capitalizing on the rising stock price. The trading plans are designed to comply with insider trading regulations, allowing executives to sell shares while minimizing legal risks. Overall, Thiel's recent stock sales highlight the ongoing financial maneuvers of Palantir's leadership amid a favorable market environment, raising questions about the future trajectory of the company's stock and its strategic direction.