Pilbara Minerals Ltd (ASX: PLS) shares have been on a tear since early June.
What kind of tear am I talking about?
Well, on 3 June, you could have picked up shares in the S&P/ASX 200 Index (ASX: XJO) lithium stock for $1.14 each, which marked a 52-week closing low.
In afternoon trade today, shares are down 4.9% amid broader weakness in the materials sector, trading for $2.93 apiece. But that still sees the Pilbara Minerals share price up a whopping 157.0% in just five months.
It should come as no surprise then that Pilbara was the second-best-performing ASX 200 stock in October, posting a one-month gain of 31.0%.
(In case you're wondering, Domino's Pizza Enterprises Ltd (ASX: DMP) led the charge on the ASX 200 last month, gaining a whopping 35.9%.)
But a significant number of investors believe the rally is overdone. Indeed, Pilbara Minerals holds the ignominious honour of being the second most shorted stock on the ASX this week with a short interest of 15.8%.
So, what's an investor to do?
Pilbara Minerals shares: buy, hold or sell?
Alto Capital's Tony Locantro recently ran his slide rule over the ASX 200 lithium stock (courtesy of The Bul).
"PLS is a global producer of lithium minerals. It has a diversified portfolio of assets and strategic partnerships in the growing battery materials sector," said Locantro, who has a sell recommendation on Pilbara Minerals shares.
As for the miner's performance, he noted:
PLS reported an outstanding September 2025 quarter with revenue of $251 million increasing 30% on the June quarter, reflecting higher prices. Unit operating costs (free on board) of $540 a tonne fell 13%, reflecting the realisation of operational efficiencies.
But Locantro pointed to the meteoric share price rise as a reason for investors to consider taking some profits off the table.
"The shares have risen from $1.98 on September 12 to trade at $3.325 on October 30. The rapid and strong share price performance provides an opportunity to lock in some profits," he said.
What's ahead for the ASX 200 lithium miner?
Pilbara Minerals shares closed up 9.1% on 24 October following the release of the miner's September quarter update.
As Locantro mentioned above, revenue surged over the three months while costs came down.
Looking ahead, however, Pilbara Minerals expects costs to increase in the December quarter.
On the day of the results release, management noted:
While the September quarter delivered strong cost performance, unit costs are expected to face upward pressure over the remainder of the financial year due to seasonal operational challenges typically associated with the wet season, and the continued implementation of end-to-end optimisation initiatives, including increased processing of contact ore.
Management still maintained Pilbara's full year cost guidance.
