Big data analytics specialist Palantir (NYSE:PLTR) disclosed an exciting announcement, though it failed to excite investors during Thursday’s morning session. Nevertheless, the partnership with the University of Colorado Anschutz Medical Campus provides a major credibility boost for the company. Currently, PLTR stock is trading within a horizontal range, with investors hoping for an eventual breakout.
According to the official press release, the deal establishes the Center for Linkage and Acquisition of Data (CLAD). This initiative represents a component of the National Institutes of Health’s (NIH) “All of Us” research program. Per the release: “All of Us is a historic research effort to drive new scientific discoveries and advance precision medicine and research.”
For its part, CLAD will connect new types of information to All of Us participant data to help researchers better understand the drivers of health and disease. Contrary to other research programs that focus on a single disease or people group, All of Us encompasses studies on a variety of health conditions. Given the tremendous amount of data involved, the initiative requires a big data expert.
That’s a substantial lift for the fundamental reputation undergirding PLTR stock. Essentially, by expanding the utility of the All of Us dataset without pressing participants for more contributions, Palantir brings tremendous value-add to the table.
PLTR Stock Optimists Hope for a Breakout
Thursday’s announcement should, in theory, move the needle for PLTR stock. Per the announcement, Palantir’s software will “serve as the interoperable, digital backbone of the CLAD platform, securely connecting these new types of information to All of Us participant data to provide researchers more information to better understand the factors that influence health.”
Unsurprisingly, Hirsh Jain, head of Public Health, Federal at Palantir, expressed that the company was “honored to partner with peers across government, industry, and academia to support” the All of Us initiative. “This program has the potential to dramatically improve health outcomes and we are excited to be a part of the team,” Jain added.
Still, PLTR stock suffers from a conspicuous distraction. True, it gained 134% in the past 52 weeks. However, the security has been trading relatively flatly since approximately mid-June last year. Indeed, the trailing six-month performance shows that PLTR currently runs a bit below parity.
Nevertheless, options traders appear bullish on Palantir. Looking at Fintel’s options flow screener, which exclusively screens for big block transactions likely made by institutions, the predominant high-profile activity is centered on the acquisition of call options at various expiration dates.
Why It Matters
While the derivatives market activity appeared to lean bullishly, analysts remain unconvinced about PLTR stock. Overall, the consensus view for Palantir is a hold rating. This assessment breaks down as four buys, four holds and six sells. Further, the average price target sits at $13.36, implying more than 18% downside risk.
On the date of publication, Josh Enomoto did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
