Palantir Technologies (NASDAQ: PLTR) is a data-analytics company best known for selling powerful software to governments and large enterprises.
Its reputation has grown alongside the hype around defense contracts and artificial intelligence. In 2023 and 2024, the stock soared on news of government deals and AI-powered growth, making it a retail investor favorite. But beneath the rally, another pattern emerged.
Palantir went public on September 30, 2020, through a direct listing rather than a traditional IPO. This meant that existing shareholders, not the company, sold their shares directly to the market.
Almost immediately, co-founders and executives began selling large blocks of stock, triggering widespread debate among retail investors.
While no illegal insider trading charges have been filed, the timing and scale of these sales have raised eyebrows.
Observers often cite Rule 10b5-1 plans and lock-up expirations as legitimate explanations, but not everyone’s convinced.
This article breaks down the most notable insider sales, from the IPO-day liquidations to recent high-dollar dumps, and tracks how markets and social media have responded.
Palantir Insider Trading Concerns
Direct Listing Sell-Off (October 2020)
Palantir’s direct listing wasn’t just a public debut, it was also a major payday for insiders.
On day one, co-founders Alex Karp and Peter Thiel sold massive amounts of stock. According to Forbes , they offloaded a combined 41.45 million shares, worth more than $400 million.
Because this was a direct listing, no money went to Palantir itself. Instead, existing shareholders, including Thiel, liquidated parts of their holdings.
The legality of these sales wasn’t questioned, these shares were part of the tradable float, but the optics were rough.
Retail traders on WallStreetBets zeroed in.
One popular post, bluntly titled “$PLTR IPO raised zero money for the company, just bailed out Thiel,” summed up the sentiment.
The frustration was clear.
Another joked that retail investors were forced to “jump in” under those conditions. On the plus side, the stock did pop 31% on day one.
But investors were quick to note that had little to do with new funding or insider confidence.
Post-Listing Lockup Sell-Off (February 2021)
Just a few months later, another wave of selling reignited retail frustration.
In February 2021, Palantir’s custom lockup period ended, freeing up more insiders to trade. SEC filings showed that co-founder Stephen Cohen and two other executives sold approximately 2.7 million shares between February 18 and 22, when the stock was hovering between $25 and $30.
These sales followed shortly after Palantir’s earnings report, amplifying market reaction. Business Insider reported the stock slid 13% once the filings went public. On Reddit, users warned of the lockup expiration’s impact. One user pointed out that before the lockup ended, only around 20% of shares were freely tradable. Others predicted the end would put selling pressure on the stock.
The market proved them right. As Cohen and others sold, the price dropped, and with it came renewed talk of a “rug pull.” As one Redditor put it, “OG investors probably want some profit,” and this was their window to take it.
2024 Election-Timed Insider Sell-Offs
By late 2023 and into 2024, Palantir shares surged again, this time fueled by record-breaking government contracts and AI hype. But as the stock rallied, climbing more than 6x, executives took the opportunity to sell into strength.
CEO Alex Karp led the charge. According to Fortune, Karp sold about 38 million shares in 2024, netting roughly $1.88 billion. Much of this selling occurred near the U.S. presidential election. In one standout week in late October 2024, he sold 25 million shares for $1.4 billion.
A month earlier, he had unloaded another 9 million shares for $325 million. While these trades were executed under Rule 10b5-1 pre-arranged plans, retail reaction was sharp.
Peter Thiel wasn’t far behind. SEC filings revealed he sold about 41.5 million shares between May and October 2024, worth over $1.3 billion. Together, Karp and Thiel significantly reduced their stakes.
Early 2025 Executive Sell-Offs
Insider selling didn’t stop after the election. In January 2025, CFO David Glazer sold 96,273 shares, worth $7.2 million, under a 10b5-1 plan.
The timing raised eyebrows: his trade came just days after Palantir reported 40% year-over-year revenue growth and after its stock had more than tripled.
Though the stock only dipped 1–2%, retail forums lit up with speculation.
Then came the big move from Stephen Cohen. On March 17, 2025, a Form 4 filing revealed that Cohen had sold 310,000 shares (converted from options) at prices between $85 and $88, totaling nearly $27 million.
After this sale, he was left holding just 592 shares. The plan, as later confirmed, had been adopted back in December 2024, prior to the stock’s run-up.
Other board members followed suit. Director Alexander Moore sold $1.74 million in March 2025, also under a 10b5-1 plan. By May, with shares trading near all-time highs around $130, Karp executed another scheduled sale, offloading about $50 million worth of shares at $126–$127.
In total, Palantir insiders and directors have sold over $2.5 billion in stock across 2024 and 2025, most of it through scheduled plans.
While explanations varied, some cited tax obligations, others diversification, retail sentiment was consistent. Many warned that “whenever Karp, Cohen or Glazer finds a lawyer, they tap their exit button.”
Final Verdict
Across multiple years and market cycles, a clear pattern has emerged: Palantir insiders have repeatedly sold large amounts of stock following rallies or near pivotal events.
Most of these sales fall within the legal boundaries of Rule 10b5-1 plans or were linked to lock-up expirations.
No formal allegations of insider trading have been filed, and analysts often note that such stock sales are standard practice for executives seeking liquidity or portfolio diversification.
Yet perception matters. The consistent timing, selling at peaks, often during surges driven by AI hype or major contracts, has fueled ongoing suspicion.
In the end, the numbers tell the story. Billions in stock sold, zero criminal charges, and one lingering sentiment: even when it’s legal, insider selling at the top can spook investors.
Palantir’s saga has become a cautionary tale for the retail crowd, proof that the line between optics and intent can be thin, even in full view of the SEC.