Few individuals command as much attention in the investment world as Stanley Druckenmiller, a name often hailed as one of the foremost hedge fund managers in existence. When a person of his calibre makes a purchase, market watchers take note.
Now that we’ve passed the May 15 deadline for Q1 13F filings, the veil has been lifted on the equity and options holdings of institutional investors as of the end of March.
Druckenmiller’s firm, Duquesne Family Office, recently revealed that it has returned to investing in Palantir (NYSE:PLTR), following a complete sell-off of the 700,707 shares it held in the second quarter of 2023. The renewed investment totaled 769,965 shares, which equates to 0.40% of his firm’s total 13F portfolio.
After the purchase was made, the tech stock became Duquesne’s 35th-largest 13F holding out of 73 total positions.
Druckenmiller initially purchased shares of Palantir, the heavyweight in big data analytics, back in Q1 2021, shortly after its initial public offering (IPO). The original stake was a hefty 5.98 million shares, dwarfing his current position.
Druckenmiller’s modus operandi tends towards short- to medium-term investments. His average 13F holding period is a streamlined 2.29 quarters, as he tends towards swiftly realizing profits before moving on to the next opportunity.
While Druckenmiller’s most recent 13F allocation to PLTR is relatively modest, some other investors have shown greater enthusiasm. Keywise Capital leads the field in Palantir allocation at 20.02% (excluding associated parties), followed by Cypress Point Wealth Management at 18.18% and Primavera Capital Management, who invested 16.76% of their portfolio in the stock.
Palantir has performed well this year, with its stock value increasing by over 30% YTD. Upon reporting its Q1 earnings, the tech firm pushed its 2024 revenue predictions from a range of $2.65 billion – $2.67 billion to a slightly higher range of $2.68 billion – $2.69 billion. The Q1 revenue growth of 21% year-over-year (YOY) to $634.3 million exceeded analyst projections of $615.3 million. With adjusted EPS matching analyst estimates at 8 cents.
Despite these strong earnings figures, Wall Street has expressed concern over Palantir’s valuation. The average price target among analysts with coverage currently stands at $20.54, suggesting a downside of approximately 6%. The highest price target is set at $35, while at the other end of the spectrum, a more conservative $9 per share is projected.
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