That said, if you bought in at $39 and again PLTR is trading at $40, then a 3% price decline would equal out to $38.80, and by conservative estimates a 15-20% decline would equal out to $32-$34. I won’t go into detail on the differences here, but just know that we all benefitted by PLTR going DPO instead of IPO. A large share lockup expiration will be around the time of earnings, creating two large catalysts happening around the same time. NYSE:PLTR fell by 3.45% on Monday as the broader markets continued to fall. Price action alone won't exactly tell us what's going on. When a company goes public through a traditional IPO, it usually sets a lock-up period of 90 to 180 days during which insiders can't sell their shares. Full Diligence Post on Palantir (PLTR) – Earnings Next Monday (2/16) & Lockup Expiration (2/19) ... & Lockup Expiration (2/19) February 13, 2021 by IWB. Leo is a tech and consumer goods specialist who has covered the crossroads of Wall Street and Silicon Valley since 2012. Noam Galai/Getty Images. Hello! Palantir Technologies (PLTR) has been on a rampage since it went public on September 30th. If you have long-term positions (shares and/or calls), I think you’re better off just holding them through the lock-up expiration if you are bullish on the stock and its future potential. Even after their recent declines, Snowflake and JFrog remain pricey relative to their revenue growth at 74 and 28 times next year's sales, respectively. Please note that I'm talking here about short-term trades. Edit 2: included lock-up expiration date, which is third trading day from q4 2020 ER (estimated 2/11) so probably 2/14? Positions: 200 shares of PLTR, 84 LEAPS of Jan 2022 $40 calls. Palantir’s lockup period expired on … Zelnick noted the upcoming expiration of Palantir's lockup period following its initial public offering. That’s pretty impressive, and I’m betting that the stock continues to run up more over the coming years! I hope all of you had an amazing Thanksgiving with your friends, family, and/or loved ones. Gobble! Posted by 1 month ago. XSW +2.59%. PLTR went public via a direct public offering (DPO) versus an initial public offering (IPO). If you were a PLTR employee and you wanted cash instead of your PLTR shares, you could have sold out 20% of your position before the direct listing. On the other hand, the stock price could run up so high that no dip big enough will ever manifest as investors and traders want to stay in the stock if they believe it will continue running up. The early ones have already seen their lockup periods expire. For short-term bullish positions, you should sell before the earnings call (remember, this is a standard trading rule … sell before earnings) and then wait to see what happens once the lock-up period expires three trading days after the earnings call before initiating another short-term position. The IPO lockup period expires Feb. 18, with 80% of shares outstanding becoming free to trade. Contrary to other direct listings, PLTR decided to use a lock-up period, which makes it just like an IPO in this respect. Palantir’s stock sank on Thursday as a lockup expiration allowed 80% of the company’s shares to trade on the open market. If PLTR has skyrocketed since the DPO, insiders might want to sell some portion of their shares to capture profit. Lock-Up Expiration Floods Market With Palantir Shares: Data analytics company Palantir went public Sept. 30 through a direct listing, a relatively inexpensive method of going public. However, keep in mind that just because the lock-up period ends and more shares are available to the public does not necessarily mean that insiders will sell. Most of the time, a stock is going to dip a few days in advance before the lockup expiration. Or you could sell to capture profit and then buy back in once the price settles down after the lockup period expires. Facebook Twitter Telegram Email. Palantir Technologies (NYSE:PLTR) Earnings Information. The stock was down as … JFrog (NASDAQ:FROG) went public on the same day as Snowflake at $44 per share. The IPO lockup period expires Feb. 18, with 80% of shares outstanding becoming free to trade. Questioning an investing thesis -- even one of our own -- helps us all think critically about investing and make decisions that help us become smarter, happier, and richer. Also consider that many insiders have free or very low-cost shares they've been holding for years. According to some estimates, the number of shares that exist, including those covered by vesting options, … Current buyers might sell out of fear, or greed. Found this post that describes how it's not actually 80% of outstanding shares but a lot lower number unloading on PLTR lock-up expiration day. In effect, a long investor might be forced to pay way more in an effort to hedge a drop in price caused by the lock-up expiration. Or, traders could use short-term options - especially puts - to play the downside opportunity. It's unclear if there's enough downside potential to make this work. Wanted to share my thoughts on Palantir ahead of its earnings next TUESDAY (Edit: sorry I got the day wrong in the title but the date 2/16 is correct). So, it is quite possible that not a lot of selling will occur once the lock-up period expires if PLTR insiders have already sold off what they wanted to sell off. Palantir had actually seen its share cost more than triple given that going public prior to a surprise profits loss on Tuesday injured momentum. When a firm goes public, the owners tend to sell roughly 15%-20% of the company. Palantir slumps as a lockup expiration opens 80% of its shares for trading (PLTR) Summary List PlacementPalantir's stock sank on Thursday after a lockup expiration freed some 80% of the company's shares to trade on the open market. To predict the impact of Palantir's upcoming lock-up expiration, we can look back at some recent lock-up expirations for other high-flying tech stocks. Palantir Technologies - Get Report stumbled Thursday as shares that were subject to lockup after the data analytics company’s Sept. 30 initial public offering were released. Palantir Technologies last released its quarterly earnings data on February 16th, 2021. Palantir Technologies Inc (NYSE:PLTR) shares came under pressure Thursday, extending the stock's losses for a sixth straight session.. Lock-Up Expiration Floods Market With Palantir Shares: Data analytics company Palantir went public Sept. 30 through a direct listing, a relatively inexpensive method of going public. Then again, a lot of selling could occur if PLTR employees want to cash out. When a company goes public through a traditional IPO, it usually sets a lock-up period of 90 to 180 days during which insiders can't sell their shares. In theory, investors could short PLTR perhaps 7-10 days before the lock-up expiration. Facebook Twitter Telegram Email. @themotleyfool #stocks $PLTR $PCG $SNOW $FROG, Why Wait for a Crash to Buy? The stock was down as much as nearly 7% shortly after the opening bell. But the biggest ones still await their lockup fate. Follow him on Twitter for more updates! That suggests a significant slowdown from last year. Another one looming and is already creating far too much headline fodder is Palantir Technologies Inc. (NYSE: PLTR). Since Palantir went public via a direct listing, the shares that became available were not newly-created. So, if you bought in lower than the $32 threshold, then you’re probably less inclined to fear the sell-off than you would be if you had bought in at $39. These 3 Hot Tech IPOs Are Already Down More Than 40%, Robinhood Investors Are Quietly Buying More of These Stocks, Here's Why Palantir Is a Must-Have Stock for Long Term Investors, Copyright, Trademark and Patent Information. After going public in September 2020, PLTR stock has seen a 140% rise and has made early investors richer. Palantir Technologies’ (NYSE:PLTR) lock-up period is set to expire on Monday, March 29th. Palantir logo design on the New York Stock Exchange. No big selling and no big downward pressure on the stock price. Palantir stock slid 13% on Tuesday as insiders take advantage of a lockup expiration to offload shares of the big data company. Gobble! They were allowed to sell up to 20% of their holdings. Indeed, the price could run up so high that no dip big enough will … If the employees and early investors in PLTR decide to sell their shares upon lock-up expiration, then that would create a sharp increase in the number of available shares to the public, thus pushing the price of the stock down. Palantir’s stock sank on Thursday after a lockup expiration freed some 80% of the company’s shares to trade on the open market. Palantir went public through a direct listing on September 30, 2020, during which up to 20% of shares were available to trade (edit, thx for pointing this out!) The stock was down as much as nearly 7% shortly after the opening bell. NYSE:PLTR fell by 3.45% on Monday as the broader markets continued to fall. Let's see if Palantir's lockup expiration could end the stock's rally. 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