3 Tech Stocks Insiders Are Buying: Speculative Plays for June

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Identifying suitable stocks can be challenging in the rapidly changing technology sector. As an investor, you tend to seek opportunities to invest in companies that show growth potential and have some level of insider confidence. We’re focusing on Palantir Technologies Inc. (PLTR), Cloudflare Inc. (NET), and UiPath Inc. (PATH), where insider information could help you make better investment choices.

Identifying the Best Tech Stocks to Watch This June

Palantir Technologies Inc. (PLTR)

Institutional investors, such as AGH Wealth Advisors LLC and Arthur M. Cohen & Associates LLC, have recently increased their holdings in Palantir, indicating confidence in the company’s upcoming product launches and financial performance.

Cloudflare Inc. (NET)

While there have been insider sales, including those by CEO Matthew Prince and President Michelle Zatlyn, these transactions were conducted under prearranged trading plans. The company’s innovative services continue to attract investor attention.

UiPath Inc. (PATH)

Despite recent insider sales by CEO Daniel Dines, the company’s advancements in AI technology and strategic partnerships suggest potential undervaluation, making it a stock worth monitoring.

Palantir Technologies Inc. (PLTR)

Recent Performance and Market Sentiment: As of June 6, 2025, PLTR experienced a significant price drop of approximately 7.8% from its recent high, trading around $119.91. This pullback, following a year-to-date surge of around +74%, is attributed to several factors:

• Profit-taking: After a strong run, traders are booking profits, which is common after sharp price increases.
• Valuation Concerns: Trivariate Research described Palantir as “one of the most expensive U.S. large caps ever,” with a trailing P/E of 565x and high price-to-sales multiples. Such elevated valuations make the stock vulnerable to pullbacks if earnings or guidance don’t keep pace with expectations.
• Muted Guidance: While Q1 2025 earnings (reported May 5, 2025) beat expectations for both EPS ($0.13 vs. $0.12857) and revenue ($883.86 million vs. $862.13 million), the company’s forward guidance was perceived as conservative by some analysts, leading to a post-earnings sell-off.
• Increasing Scrutiny Over Government Ties: Palantir’s heavy involvement with U.S. federal agencies (ICE, DoD, HHS) has sparked privacy and political backlash, which could present reputational and regulatory risks.
• Broader Tech Market Weakness: The general tech market was also experiencing a downturn, contributing to PLTR’s decline.

Growth Drivers and Strategic Direction

• AI Adoption: Palantir’s core strength lies in its AI-driven platforms, Foundry and Gotham, which enable organizations to integrate and analyze vast datasets for actionable insights. The company is actively pursuing opportunities in AI adoption across both government and commercial sectors.
• Commercial Expansion: While historically strong in government contracts, Palantir is aggressively expanding its commercial business. Recent partnerships, such as with Bolt (AI-enabled checkout) and TeleTracking Technologies (healthcare operations), illustrate this diversification. The company’s U.S. commercial revenue grew 64% year-over-year in Q1 2025 and is expected to exceed $1 billion in FY2025, signifying a strong shift.
• Federal Tech Budgets: Continued federal tech budget allocations are expected to drive further expansion in Palantir’s government segment.
• Strong Financials (excluding valuation): Palantir boasts strong profitability metrics with an 18.3% net income margin and a 42.8% operating cash flow margin. It also maintains a strong balance sheet with significantly more cash than debt.

Risks and Opportunities

• Risks:
  • High Valuation: The current valuation makes PLTR highly sensitive to any growth misses or market downturns.
  • Government Contract Dependencies: While a strength, over-reliance on government contracts can expose the company to political shifts, budget cuts, and public scrutiny.
  • Competitive Landscape: Increased competition in the AI and data analytics space could impact market share.
  • Insider Selling: Consistent insider selling activity can be a concern for some investors.
• Opportunities:
  • AI Monetization: Successful commercialization of its AI capabilities, especially with the Palantir AI Platform (AIP), could unlock significant new revenue streams.
  • Expansion into New Verticals: Broadening its customer base beyond government and into diverse commercial sectors.
  • Long-term Government Contracts: Securing long-term, high-value government contracts provides a stable revenue base.

Analyst Sentiment & Price Targets: Analyst consensus for PLTR is currently “Hold,” with a wide range of price targets ($40 to $160), reflecting deep uncertainty. The average target is around $100, implying potential downside from current levels. This mixed sentiment highlights the polarizing views on Palantir’s valuation versus its growth prospects.

Cloudflare Inc. (NET)

Recent Performance and Strategic Direction: Cloudflare started 2025 with strong Q1 results (reported May 8, 2025), exceeding revenue expectations ($479.1 million vs. $469.74 million) with a 27% year-over-year increase. Key highlights from their earnings call:

• Record Contracts: Cloudflare secured its largest-ever contract (> $100 million) driven by its Workers developer platform, and its longest-term SASE (Secure Access Service Edge) contract to date. This indicates increasing customer confidence and commitment to Cloudflare’s platform.
• Strong Customer Growth: The number of paying customers increased by 27% year-over-year to 251,000, with large customers (>$100k annual revenue) growing 23% to 3,527. Revenue contribution from large customers also grew 32% year-over-year, now comprising 69% of total revenue.
• Improving Profitability: While still reporting a GAAP net loss ($38.5 million), Cloudflare achieved positive non-GAAP income from operations ($56 million) and strong free cash flow ($52.9 million).
• Strategic Focus: Cloudflare is prioritizing digital modernization, AI infrastructure (building and delivering secure AI applications), data compliance, and post-quantum cryptography. Their Workers, Workers KV, and R2 offerings are central to their developer platform strategy.
• Global Privacy and Security: The company’s recent Global Cross-Border Privacy Rules (Global CBPR) and Global Privacy Recognition for Processors (Global PRP) certifications underscore its commitment to trust and secure cross-border data transfers, crucial for its global customer base.

Growth Drivers and Opportunities

• Massive Addressable Market: Cloudflare operates in a vast and growing market, including cybersecurity, web performance, and developer platforms. The increasing demand for secure and fast internet infrastructure, especially for AI applications, plays directly into its strengths.
• Zero Trust and SASE Adoption: As organizations move away from traditional VPNs due to security and performance issues, Cloudflare’s Zero Trust and SASE solutions are gaining significant traction.
• Developer Platform (Workers): The success of the Workers platform, evidenced by the large contract win, positions Cloudflare as a key player in the serverless computing and edge AI space.
• Strategic Partnerships: Expansion of partnerships, like with TD SYNNEX for managed security services in Latin America, will extend Cloudflare’s reach and market penetration.

Risks and Challenges

• Competition: Cloudflare faces intense competition from larger hyperscalers (e.g., AWS, Microsoft Azure, Google Cloud) and other cybersecurity vendors.
• Macroeconomic Headwinds: Potential economic pressures could impact customer spending on IT infrastructure and security.
• Network Capital Expenditures: Continued investment in its global network to support growth may impact margins.
• GAAP Profitability: While non-GAAP operating income is positive, achieving consistent GAAP profitability remains a challenge.

Analyst Sentiment & Price Targets: Analyst consensus for NET is “Hold,” with a median price target of $107.71. Despite the strong Q1 results and positive outlook from management, analysts seem to be taking a cautious approach, possibly due to the stock’s recent surge and valuation.

UiPath Inc. (PATH)

Recent Performance and Strategic Direction: UiPath delivered solid Q1 FY2026 results (reported May 29, 2025), beating EPS ($0.11 vs. $0.10263) and revenue ($356.62 million vs. $332.17 million) expectations.

• Agentic Automation Focus: UiPath is heavily investing in and promoting “agentic automation,” which involves AI agents autonomously executing and optimizing complex business processes. This is a key differentiator as the RPA market evolves.
• IDC MarketScape Leader: UiPath was recently named a Leader in the IDC MarketScape: Worldwide Business Automation Platforms 2025 Vendor Assessment, recognizing its vision and capabilities in agentic automation and end-to-end orchestration.
• Platform Capabilities: The UiPath Platform offers:
  • UiPath Maestro™: A new orchestration layer for end-to-end business process automation, with built-in process intelligence.
  • Controlled Agency: Ensures AI agents operate within defined guardrails for security, predictability, and performance.
  • UiPath Agent Builder: Low-code tools for business technologists and advanced coding environments for developers.
  • Open, Multi-Agent Framework: Integrates with third-party agent frameworks, supporting sophisticated multi-agent systems.
• Partnerships: The partnership with HCLTech to accelerate agentic automation deployment for global enterprises, including an AI Lab in India, is a strategic move to broaden its reach and adoption.

Growth Drivers and Opportunities

• Evolution of Automation: The shift from traditional RPA to intelligent automation and now “agentic automation” creates new market opportunities for UiPath.
• Increased Enterprise Adoption: As businesses increasingly seek to improve efficiency, productivity, and compliance, the demand for automation solutions like UiPath’s will continue to grow.
• AI Integration: UiPath’s deep integration of AI into its platform allows for more sophisticated and intelligent automation, addressing more complex business challenges.
• Strategic Partnerships: Collaborations with global system integrators and technology partners can significantly expand UiPath’s market penetration.

Risks and Challenges

• Competition: The automation market is competitive, with established players and new entrants vying for market share.
• GAAP Profitability: Similar to Cloudflare, UiPath is not yet GAAP profitable. Investors will be watching for continued progress on this front.
• Net Retention Rate (NRR) and Customer Count: The slight decrease in total customer count and a drop in net retention rate (NRR) to 110% indicates potential challenges in retaining existing customers and expanding their spend.
• Macroeconomic Impact: Economic slowdowns could lead to reduced enterprise spending on automation projects.
• Sales Execution: The company needs to demonstrate strong sales execution to capitalize on the growing demand for automation.

Analyst Sentiment & Price Targets: Analyst consensus for PATH is “Hold,” with a median price target of $18.92 (ranging from $10 to $30). While Zacks has a “Buy” rating, indicating an improving earnings outlook, the overall “Hold” consensus suggests a degree of caution among analysts, likely due to profitability concerns and the competitive landscape.

Overall Considerations for Investors:

• Valuation is Key: All three companies trade at high valuations, especially Palantir. Investors need to carefully assess if the growth prospects justify these valuations. A high P/E ratio for Palantir (554.78x) and negative EPS for Cloudflare and UiPath indicate that a significant portion of their value is tied to future growth expectations.
• AI as a Differentiator: AI is a common thread for all three, but their approaches differ. Palantir focuses on large-scale data analysis and operational AI, Cloudflare on secure AI application delivery at the edge, and UiPath on AI-driven autonomous automation. Understanding these nuances is crucial.
• Path to Profitability: While Cloudflare and UiPath are showing progress towards non-GAAP profitability and positive free cash flow, their GAAP net losses indicate ongoing investments and operating expenses. Investors should monitor their trajectory towards sustained GAAP profitability.
• Market Volatility: The tech sector, particularly high-growth stocks, can experience significant volatility. Recent movements in PLTR demonstrate this. Investors should be prepared for price fluctuations.
• Competitive Landscape: Each company operates in highly competitive environments. Their ability to innovate, secure large contracts, and expand their customer base will be critical for sustained growth.

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Insider Buying Trends and What They Mean for You

A rise in insider buying can mean that people really believe in the company’s future. Insiders are people who work for the company and know a lot about how it works and how it makes money. Their trading activities are useful indicators. In the tech sector, where new ideas contribute to growth, monitoring insider trades can provide insights into potential market changes.

When analyzing insider activity, consider:

• Volume of Shares Traded: Significant increases may reflect confidence in the company’s trajectory.

• Historical Stock Performance: Assess how past insider activities align with stock price movements.

• Sector Trends: Understand broader market conditions and how technological advancements support the company’s business model.

Evaluating these factors can enhance your investment decisions by providing a clearer picture of a company’s potential.

A Closer Look at Each Stock: Risks and Rewards

Before investing, it’s important to weigh the potential benefits against the inherent risks associated with each company:

• Palantir Technologies (PLTR): The company’s focus on emerging markets and innovative products presents strong growth potential. However, investors should be mindful of its high debt levels, which could pose risks if market conditions change.

• Cloudflare (NET): The company’s technological innovations position it well for market expansion. Yet, the competitive landscape in the tech industry remains intense, which could impact sustained profitability.

• UiPath (PATH): With momentum from strategic partnerships and a growing market share, UiPath shows promise. Nevertheless, its past stock volatility may lead to unpredictable price fluctuations, potentially affecting new investors.

Crafting Your Investment Strategy with These Insights

Insider activities can serve as valuable indicators when shaping your investment strategy, especially in the tech sector. Here’s how you can leverage these insights:

• Research Industry Trends: Stay informed about emerging technologies that could lead to promising investments.

• Diversify Your Holdings: Spreading investments across various sectors can mitigate risks while capitalizing on tech growth.

• Monitor Insider Activity: Regularly tracking insider purchases and sales can provide indicators of market sentiment and company health.

By integrating these strategies, you can build a more informed and resilient investment portfolio tailored to the evolving tech landscape.

Tips for Speculative Investing

A well-planned speculative investing strategy is important in markets that are changing quickly. When insiders buy stock, it usually means they think the company has a good chance of success, even when things are uncertain. To navigate this volatility:

• Conduct Thorough Research: Analyze company fundamentals, including financial statements and upcoming catalysts like product launches or earnings reports.

• Diversify Wisely: Avoid over-concentration in a single stock or sector to minimize risk.

• Set Clear Investment Goals: Define your objectives, whether seeking short-term gains or long-term growth, to guide your investment decisions.

Moving Forward in Tech Investing

Embarking on tech investments requires a strategic approach aligned with your financial goals. Here’s how to proceed:

• Research Company Fundamentals: Research into earnings reports, revenue growth, and market positioning beyond stock prices.

• Diversify Your Portfolio: While it’s tempting to invest heavily in a single tech stock, diversification helps mitigate risk.

• Set Clear Investment Goals: Determine whether you’re aiming for short-term profits or long-term stability to guide your decisions.

• Stay Informed: Keep abreast of market news, industry trends, and economic indicators that influence tech stocks.

Following Smart Money with Caution and Clarity

Insider activities give investors useful information about how to deal with the complicated tech sector. These kinds of actions can show that someone is confident in a company’s future, but they should be looked at along with thorough research and a clear investment plan. You can make better choices in the tech market, which is always changing, by staying up to date, spreading your investments around, and setting clear goals. This will help you weigh the risks and rewards of each investment.

Frequently Asked Questions

What are the three tech stocks that insiders are currently buying?

The three tech stocks are Palantir Technologies Inc. (PLTR), Cloudflare Inc. (NET), and UiPath Inc. (PATH), each showing notable insider activities.

Why should investors consider these stocks as speculative plays?

Due to their volatility and the dynamic nature of the tech sector, these stocks present high-risk, high-reward opportunities. Insider activities can signal confidence in their potential despite market uncertainties.

What factors should I analyze when looking at insider buying?

Consider the timing and volume of purchases, the insider’s role within the company, and the company’s overall financial health and market position.

How does insider buying impact stock prices?

Insider buying can boost investor confidence, potentially leading to increased demand and higher stock prices. However, it’s essential to consider other market factors as well.

What should I keep in mind when investing in speculative tech stocks?

Be prepared for inherent risks, ensure portfolio diversification, stay informed about market conditions, and set realistic expectations regarding potential gains and losses.

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Reviewed and edited by Albert Fang.

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Article Title: 3 Tech Stocks Insiders Are Buying: Speculative Plays for June

https://fangwallet.com/2025/10/20/3-tech-stocks-insiders-are-buying-speculative-plays-for-june/

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