Palantir Technologies (PLTR) has experienced a significant surge in its stock price, following the announcement that the data-analytics company will join the S&P 500 index on September 23. Notably, one of the company’s largest shareholders, Peter Thiel, co-founder and chairman, may capitalize on this upward momentum through a pre-arranged Rule 10b5-1 plan. This plan could see the sale of nearly $1 billion worth of shares by December 2025. While Thiel has not sold shares recently under this plan, his prior sales earlier this year amounted to $273.5 million, sparking attention on future transactions.

Palantir’s Inclusion in the S&P 500 Fuels Stock Surge

Stock Gains in Anticipation of S&P 500 Listing
Palantir's stock has been on a sharp upward trajectory since it was revealed that the company will be added to the S&P 500 index, effective September 23. This development has driven a 14% increase in the stock price, pushing it to $34.17, a significant rise from its previous levels. Year-to-date, Palantir shares have more than doubled, underscoring growing investor confidence in the company’s potential as it garners more visibility from institutional investors.

Thiel's Planned Stock Sales and Rule 10b5-1 Framework

Regulatory Filing Indicates Potential Sales
In a regulatory filing from August, Palantir disclosed that Peter Thiel, via his investment vehicle Rivendell 7 LLC, had adopted a Rule 10b5-1 plan on May 15, allowing the sale of up to 28.59 million shares by December 31, 2025. Rule 10b5-1 plans enable corporate insiders like Thiel to schedule pre-determined stock sales, insulating them from accusations of trading on non-public information. The trades are automatically executed once conditions such as price, volume, and timing criteria are met.

No Sales Executed Yet Under New Plan

Timing of Sales Remains Uncertain
Though Thiel’s 10b5-1 plan has been in place for four months, no shares have yet been sold under this arrangement. The last stock sales occurred in May, under a different plan, when Thiel sold 13 million shares for $273.5 million at an average price of $21.11 per share. Of these, 8 million shares were sold through Rivendell 7, leaving it with 62.9 million shares in Palantir, while another Thiel entity, STS Holdings II LLC, sold 5 million shares, leaving it with 15.7 million shares.

Thiel’s Control Over Palantir’s Voting Structure

Thiel’s Influence Through Class B and F Shares
Peter Thiel’s ownership extends beyond regular shares, granting him considerable influence over Palantir’s corporate governance. His investment vehicles collectively own 32.5 million Class B shares, which carry 10 votes per share compared to the single vote associated with publicly traded shares. Additionally, as one of Palantir’s co-founders, Thiel holds 335,000 Class F shares within the Founder Voting Trust. This trust, comprising shares held equally by Thiel, CEO Alexander Karp, and co-founder Stephen Cohen, effectively grants the trio a 49.99% voting interest in Palantir, giving them significant decision-making power.

Future Sales Could Impact Palantir Stock

Potential $977 Million Worth of Stock to Be Sold
As of the current stock price of $34.17, the 28.59 million shares that Thiel’s plan allows him to sell are valued at approximately $977 million. With Palantir’s stock trading 62% above the average price of Thiel’s last sales in May, the timing of his future sales remains a critical point of interest for the market. Investors will be closely watching when the next round of transactions occurs, as it could influence Palantir’s stock price and overall market sentiment.