Planet Labs PBC (NYSE:PL) Shares Down 26.3% – Time to Sell?

Planet Labs PBC (NYSE:PL) dropped 26.3% during trading on Friday . The stock traded as low as $31.66 and last traded at $32.0770. Approximately 40,362,878 shares changed hands during trading, an increase of 205% from the average daily volume of 13,246,796 shares. The stock had previously closed at $43.53.

Key Stories Impacting Planet Labs PBC

Here are the key news stories impacting Planet Labs PBC this week:

• Positive Sentiment: Planet Labs posted record quarterly revenue of $94.2 million, above estimates, and said revenue rose 42% year over year, showing continued demand for its satellite imagery and data services. Planet Reports Financial Results for First Quarter of Fiscal Year 2027
• Positive Sentiment: The company also raised its full-year outlook, guiding FY2027 revenue to $425 million-$441 million, which was roughly in line to slightly above Wall Street expectations and reinforced confidence in growth momentum. Planet forecasts FY2027 revenue of $425M-$441M as it targets Rule of 40
• Positive Sentiment: Planet expanded its backlog and said defense and intelligence revenue grew more than 65% year over year, highlighting a healthy pipeline and stronger government demand. Planet Labs beats Q1 estimates as defense revenue surges, shares fall on outlook
• Positive Sentiment: Wedbush and Needham both reiterated constructive views, with price targets raised to $50 and $53 respectively, suggesting analysts still see meaningful upside from current levels. Why Is Planet Labs Stock Sinking Friday?
• Neutral Sentiment: Planet also extended its NGA partnership with an $22 million maritime surveillance contract, adding another government revenue stream and supporting longer-term visibility. Planet Labs Extends NGA Partnership With $22 Million Maritime Surveillance Contract
• Negative Sentiment: Shares are under pressure because investors are worried about dilution after Planet filed for a large at-the-market stock program, which could increase the share count over time. Planet Labs Launches $1.5 Billion ATM Stock Program
• Negative Sentiment: Some traders were also disappointed that full-year guidance and capital-allocation details did not appear aggressive enough, leading to a selloff despite the earnings beat. Wedbush makes a strong case for buying the dip in Planet Labs stock

Analyst Ratings Changes

PL has been the subject of several research analyst reports. Deutsche Bank Aktiengesellschaft set a $38.00 target price on Planet Labs PBC and gave the stock a “buy” rating in a research note on Friday, March 27th. Northland Securities set a $50.00 target price on Planet Labs PBC in a research note on Friday. New Street Research initiated coverage on Planet Labs PBC in a research note on Wednesday, May 13th. They set a “sell” rating and a $28.00 target price for the company. Wedbush reissued an “outperform” rating and set a $50.00 target price on shares of Planet Labs PBC in a research note on Friday. Finally, The Goldman Sachs Group boosted their target price on Planet Labs PBC from $18.00 to $20.00 and gave the stock a “neutral” rating in a research note on Monday, April 20th. Six investment analysts have rated the stock with a Buy rating, three have assigned a Hold rating and three have given a Sell rating to the company’s stock. According to MarketBeat, Planet Labs PBC has an average rating of “Hold” and an average price target of $35.11.

Planet Labs PBC Price Performance

The company has a 50 day moving average price of $38.85 and a 200-day moving average price of $27.60. The company has a quick ratio of 1.64, a current ratio of 1.65 and a debt-to-equity ratio of 2.37. The company has a market cap of $11.10 billion, a price-to-earnings ratio of -41.12 and a beta of 1.99.

Planet Labs PBC (NYSE:PL) last released its quarterly earnings data on Thursday, June 4th. The company reported ($0.03) earnings per share (EPS) for the quarter, meeting the consensus estimate of ($0.03). Planet Labs PBC had a negative return on equity of 69.61% and a negative net margin of 80.22%.The company had revenue of $94.15 million during the quarter, compared to the consensus estimate of $90.00 million. The company’s quarterly revenue was up 42.1% compared to the same quarter last year. As a group, equities research analysts predict that Planet Labs PBC will post -0.45 EPS for the current fiscal year.

Insider Activity at Planet Labs PBC

In related news, insider Robert H. Schingler sold 73,683 shares of the company’s stock in a transaction that occurred on Monday, April 6th. The stock was sold at an average price of $35.07, for a total value of $2,584,062.81. Following the sale, the insider directly owned 256,488 shares in the company, valued at $8,995,034.16. This represents a 22.32% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Ashley F. Johnson sold 200,000 shares of the company’s stock in a transaction that occurred on Thursday, April 2nd. The shares were sold at an average price of $35.10, for a total value of $7,020,000.00. Following the completion of the sale, the chief financial officer owned 1,895,162 shares in the company, valued at $66,520,186.20. The trade was a 9.55% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Corporate insiders own 16.42% of the company’s stock.

Institutional Trading of Planet Labs PBC

Institutional investors have recently added to or reduced their stakes in the stock. Vanguard Group Inc. boosted its holdings in Planet Labs PBC by 4.3% in the fourth quarter. Vanguard Group Inc. now owns 19,358,515 shares of the company’s stock valued at $381,750,000 after acquiring an additional 806,818 shares during the last quarter. Divisadero Street Capital Management LP bought a new stake in Planet Labs PBC in the third quarter valued at approximately $13,564,000. New York State Common Retirement Fund boosted its holdings in Planet Labs PBC by 45.3% in the third quarter. New York State Common Retirement Fund now owns 202,384 shares of the company’s stock valued at $2,627,000 after acquiring an additional 63,088 shares during the last quarter. Oppenheimer & Co. Inc. boosted its holdings in Planet Labs PBC by 74.1% in the third quarter. Oppenheimer & Co. Inc. now owns 2,002,184 shares of the company’s stock valued at $25,988,000 after acquiring an additional 851,937 shares during the last quarter. Finally, Ranger Investment Management L.P. bought a new stake in Planet Labs PBC in the third quarter valued at approximately $2,688,000. 41.71% of the stock is currently owned by institutional investors.

About Planet Labs PBC

Planet Labs PBC is a public benefit corporation that operates one of the largest fleets of Earth-imaging satellites, providing high-frequency, high-resolution imagery and data analytics to a broad range of industries. The company’s multi-spectral satellite constellation captures daily snapshots of the planet, enabling clients to monitor changes in agriculture, forestry, urban development, energy infrastructure and environmental conditions. Planet’s imagery platform is designed to support timely decision-making by transforming raw satellite data into actionable insights for business and government users.

Founded in 2010 by former NASA scientists Will Marshall, Robbie Schingler and Chris Boshuizen, Planet Labs grew from a small startup into a key provider in the satellite imaging sector.