Palantir Insiders Are Selling 9 Shares for Every 1 They Buy. Here Is the Defense Stock Smart Money Is Buying Instead

"Palantir trades at a trailing P/E of 153, a forward P/E of 97, and a price-to-sales ratio of 63. The stock has already given back 22.99% year to date, sliding from $177.75 to $136.89 even after blowout earnings. The market is starting to choke on the multiple."

"Insiders are voting with their wallets. The selling-to-buying ratio over the last three months sits at 9.3 to 1, with director Peter Thiel offloading more than 2 million shares on a single day in March at prices between $140.97 and $146.80. Karp and director Stephen Cohen joined the parade in February. Add $684 million in fiscal 2025 stock-based compensation and the dilution math gets uglier every quarter."

"To justify today's price, Palantir has to deliver on its 61% revenue growth guide for 2026 with U.S. commercial growth above 115%. Any wobble, and the multiple compresses violently. Reddit sentiment has already cooled from a peak of 65.65 on April 22 to 52.16. The crowded trade is unwinding in slow motion."

"AeroVironment ( NASDAQ:AVAV) is the asymmetric setup retirement investors should be studying while the crowd argues over Palantir. The maker of Switchblade loitering munitions and autonomous systems carries an $8.42 billion market cap, a forward P/E of 45, and a price-to-sales ratio of just 5. Three reasons it deserves your attention: Faster growth at a fraction of the multiple."

Palantir’s valuation metrics are extremely high, with a trailing P/E of 153, a forward P/E of 97, and a price-to-sales ratio of 63. Despite strong Q4 2025 revenue growth, the stock has declined year to date, and the market appears to be reacting to the size of the multiple. Insider selling has been notable, with a high selling-to-buying ratio over the last three months and additional stock-based compensation contributing to dilution concerns. To justify the current price, Palantir must meet aggressive 2026 revenue growth targets, including strong U.S. commercial growth. AeroVironment is presented as an alternative, with a lower price-to-sales ratio and a forward P/E of 45, alongside much higher recent revenue growth.

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