Palantir is down 10% in the last five days, and the blame falls squarely on insiders who appear to be dumping shares like the Hawk Tuah girl dumped $HAWK on her fans right after launching.

First up is Ryan D. Taylor, Palantir’s Chief Legal and Business Affairs Officer… the guy in charge of keeping the company’s legal ducks in a row and preventing anyone from dragging Palantir into court (too often). Apparently, his busy schedule didn’t stop him from carving out time to cash in while the cashing was good. Taylor unloaded 483,987 shares ($36 million). After this little fire sale, his stake in the company crashed by 74%, leaving him with only 170,273 shares worth about $12.68 million. Sure, that’s still enough to keep the lights on in his mansion, but let’s not kid ourselves… this move doesn’t exactly scream "I’m confident in the stock."

Joining Taylor in the “thanks, but I’m out” camp is Lauren Elaina Friedman Stat, a Palantir board member since 2019. Stat sold 800 shares for $61,032. Compared to Taylor’s epic sell-off, this is like allowance money for taking out the trash. Still, every little sale adds fuel to the growing fire of suspicion that insiders might know something the rest of us don’t. Cathie Wood, everyone’s favorite stock market momager, also threw in the towel on some Palantir shares. ARK Innovation ETF, ARK Next Generation Internet ETF, and ARK Fintech Innovation ETF (yes, all three) combined to sell nearly 197,000 shares this week. Wood’s funds have historically been Palantir cheerleaders (facepaint and all), but it seems even she’s feeling a little sick about those valuations.

Analysts in Manhattan aren’t exactly helping the situation either. Sanjit Singh, Morgan Stanley’s go-to guy for software and AI stocks, downgraded Palantir to “underweight” with a $60 price target. It’s really not hard to see why. The stock’s trading at an absurd 160 times forward earnings… Basically, investors are paying for a fairy tale ending. Except Singh’s verdict is that this happy-ever-after is already baked into the price (and might burn in the oven). Let’s not forget Palantir was the Cinderella story in 2024. The stock skyrocketed 340%, and was easily the S&P 500’s best performer. It seemed like every other day their CEO with the weird hair was locking down a new government contract. But 2025 has been a different story. Palantir’s shares fell 12% in just two days this week, marking their worst stretch since May 2024.

Not everyone is hitting the sell button, though.Wedbush analyst Dan Ives is sticking to his guns with an “outperform” rating and a $75 price target. He’s convinced AI spending will keep flowing and Palantir’s business pipeline will puff up like a balloon. But when insiders sell and the stock’s momentum falters, it’s hard not to wonder if the easy gains are behind us. If you own Palantir stock, you might want to keep an eye on key support levels around $66 and $59. If the stock breaks below those, it could get ugly fast.

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Stock.News does not have positions in companies mentioned.