Investing.com -- Palantir Technologies continues to receive strong customer praise for its AI Platform (AIP), but insider selling remains a concern, according to Jefferies analysts on Tuesday. 

The firm notes that co-founder and President Stephen Cohen has sold $310 million worth of shares in recent days, representing roughly 23% of his overall stake in the company.

While Palantir (NASDAQ:PLTR)'s fundamentals remain strong, the firm says valuation is a key issue, with the stock trading at 45 times estimated 2026 earnings—the most expensive in Jefferies’ software coverage. 

The resumption of insider selling through Rule 10b5-1 trading plans in 2025 is said to add to investor concerns about the stock’s elevated multiple.

The firm noted that at its sixth AI Platform customer event, Palantir showcased several case studies highlighting how its technology is transforming businesses. 

Walgreens detailed how it used Palantir Foundry and AIP to optimize labor allocation, improving operational efficiencies by 30% and increasing patient engagement by 32%.

Heineken (AS:HEIN) credited Palantir’s AI with helping scale its supply chain operations, making faster decisions across 33,000 containers and 450 distributors. 

Parexel reported that AIP reduced the time needed for regulatory submission materials by over 50%, speeding up clinical trial processes. R1, a healthcare revenue cycle management company, highlighted how AI-driven automation has improved medical coding and financial outcomes for providers.

While the “fundamentals have been strong, valuation remains the biggest concern and insiders continue to sell,” argues Jefferies.

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