On Wednesday, Wedmont Private Capital disclosed a purchase of approximately $36.4 million in Palantir Technologies (PLTR 0.41%) shares, according to a recent SEC filing.
What happened
According to a Securities and Exchange Commission (SEC) filing released on Wednesday, Wedmont Private Capital bought 224,263 additional shares of Palantir Technologies during the third quarter. The estimated transaction value was $36.4 million, bringing the firm's total Palantir position to 267,535 shares valued at $48.7 million as of September 30.
What else to know
This buy increased Palantir’s weighting to 1.8% of Wedmont Private Capital’s $2.7 billion in 13F reportable assets, putting the stock outside the fund’s top five positions.
Top holdings after the filing:
- NYSEMKT:VEA: $238.9 million (8.9% of AUM)
- NYSEMKT:VWO: $154.2 million (5.7% of AUM)
- NYSEMKT:VTI: $130.8 million (4.9% of AUM)
- NYSEMKT:VOO: $105.2 million (3.9% of AUM)
- NYSEMKT:IEFA: $99.4 million (3.7% of AUM)
As of Wednesday morning, Palantir Technologies shares were priced at $181.46, up a staggering 338% over the past year and far outperforming the S&P 500's 17% gain in the same period.
Company overview
| Metric | Value |
|---|---|
| Price (as of Wednesday morning) | $181.46 |
| Market capitalization | $431 billion |
| Revenue (TTM) | $3.4 billion |
| Net income (TTM) | $763 million |
Company snapshot
- Palantir offers data analytics platforms including Gotham, Foundry, Apollo, and the Artificial Intelligence Platform (AIP)
- Develops and deploys software platforms for government agencies and commercial enterprises, enabling clients to integrate and analyze large-scale data
- Primary customers include U.S. and allied government agencies
Palantir Technologies operates at scale with over $3.44 billion in trailing 12 months revenue and a market capitalization exceeding $400 billion. It leverages proprietary platforms to deliver analytics and AI solutions to public sector and commercial clients.
Foolish take
Wedmont Private Capital’s $36.4 million purchase of Palantir underscores continued institutional conviction in the AI-driven software firm, which has been one of the market’s top performers this year. The stock has soared 338% over the past 12 months—an extraordinary climb fueled by record commercial growth and optimism around its AI software infrastructure.
As evidence of the growth, Palantir’s second-quarter results shattered expectations, with revenue climbing 48% year over year to $1 billion, and U.S. commercial revenue jumping 93%. Profitability followed suit: The company, which went public in September 2020, reported $327 million in GAAP net income, a 33% margin, while adjusted free cash flow reached $569 million, or 57% of revenue. CEO Alex Karp called it “a phenomenal quarter" and highlighted the company’s “astonishing impact of AI leverage.”
In his shareholder letter, Karp described this phase as “only the beginning of something much larger,” pointing to a Rule of 40 score (the sum of a firm's year-over-year revenue growth and profit margin) of 94%, far above the software industry benchmark of 40%. For long-term investors, Palantir’s combination of profitability, momentum, and mission-critical AI adoption continues to make for a compelling growth story to watch.
Glossary
13F reportable assets: Assets that institutional investment managers must disclose quarterly to the Securities and Exchange Commission (SEC), showing certain U.S. equity holdings.
AUM (Assets Under Management): The total market value of investments managed by a fund or firm on behalf of clients.
Weighting: The percentage of a portfolio or fund allocated to a specific asset, sector, or holding.
Top holdings: The largest investments in a fund or portfolio, typically ranked by value or percentage of AUM.
Outperforming: Achieving a higher return than a benchmark or comparable investment over a given period.
Quarter: A three-month period used by companies and investors for financial reporting and analysis.
Proprietary platforms: Software or technology developed and owned by a company, not available for public use or licensing.
Mission-critical: Essential systems or processes whose failure would seriously impact an organization’s operations.
Artificial Intelligence Platform (AIP): A software system designed to develop, deploy, and manage artificial intelligence applications.
Market close: The end of the regular trading session for a stock exchange on a given day.
TTM: The 12-month period ending with the most recent quarterly report.
Allied government agencies: Government organizations from countries that cooperate closely, often for defense or intelligence purposes.
