Palo Alto Networks (NASDAQ:PANW) Trading Down 0.1% - Here's Why

Palo Alto Networks, Inc. (NASDAQ:PANW) experienced a slight decline of 0.1% on Monday. The stock reached a low of $188.04 and was last seen trading at $190.19. During midday trading, 1,096,917 shares were exchanged, marking an 82% drop from the average session volume of 6,150,662 shares. The stock had closed the previous day at $190.43.

Recent analyses from equities research experts have provided updated price targets for Palo Alto Networks. KeyCorp increased their price target from $217.00 to $240.00, maintaining an "overweight" rating on February 11th. Similarly, BMO Capital Markets raised their target from $195.00 to $212.50 on November 21st, giving the company an "outperform" rating. In contrast, Barclays lowered their price target considerably from $425.00 to $213.00 and continued to rate the stock as "overweight" on December 17th. StockNews.com changed their rating from "buy" to "hold" on December 24th. Cantor Fitzgerald reaffirmed an "overweight" rating with a target price of $223.00 on February 12th. Overall, three analysts have rated the stock as a sell, eleven have issued hold ratings, twenty-eight assigned buy ratings, and one gave it a strong buy rating. The consensus rating for Palo Alto Networks is currently classified as a "Moderate Buy," with an average target price of $205.06 according to MarketBeat.com.

Palo Alto Networks Stock Performance

The company’s stock has a 50-day moving average of $186.64 and a 200-day moving average of $184.54. Palo Alto Networks holds a market capitalization of $121.61 billion, with a price-to-earnings (P/E) ratio of 103.48 and a price-to-earnings growth (PEG) ratio of 5.64. The stock has a beta of 1.14, indicating its volatility in relation to the market.

Palo Alto Networks last released its quarterly earnings report on February 13th, revealing earnings per share (EPS) of $0.81, exceeding analysts' estimates of $0.75 by $0.06. The company's revenue for the quarter was $2.26 billion, slightly surpassing the anticipated $2.24 billion. The firm reported a return on equity of 21.93% along with a net margin of 14.64%. Analysts predict that Palo Alto Networks will post an EPS of 1.76 for the current fiscal year.

Insider Activity

In recent developments, EVP Lee Klarich sold 120,000 shares of Palo Alto Networks on January 6th, at an average price of $179.70, totaling $21,564,000. Following this transaction, Klarich holds 365,856 shares worth approximately $65,744,323.20, which represents a 24.70% reduction in his stake. This sale was recorded in an SEC filing. In another transaction, CEO Nikesh Arora sold 490,723 shares on February 3rd at an average price of $182.45, leading to a total value of $89,532,411.35. Post-sale, Arora owns 1,086,404 shares valued at around $198,214,409.80, marking a 31.11% decline in his ownership. Over the past 90 days, insiders have sold 1,122,864 shares of stock valued at $204,315,811. Currently, insiders hold 2.50% of the company’s stocks.

Institutional Investors Weigh In On Palo Alto Networks

Recently, several hedge funds have bought and sold shares of Palo Alto Networks. Menard Financial Group LLC increased its holdings by 132.7% in the fourth quarter, owning 9,282 shares valued at $1,689,000 after adding 5,294 shares. The Employees Retirement System of Texas also doubled its stake by acquiring an additional 211,850 shares, bringing its total to 423,700 shares worth $77,096,000. Omnia Family Wealth LLC lifted its position by 101.1%, now holding 1,798 shares valued at $327,000. Bernard Wealth Management Corp acquired a new stake in the company worth $2,584,000. Finally, Pinnacle Wealth Planning Services Inc enhanced its holdings by 41.2%, owning 2,385 shares worth $434,000 after purchasing another 696 shares. In total, institutional investors control 79.82% of the company’s stock.

About Palo Alto Networks

Palo Alto Networks, Inc. specializes in providing cybersecurity solutions globally. Their offerings include firewall components, software, and Panorama, a security management solution for network security. They also provide various subscription services addressing threat prevention, malware protection, URL filtering, device security, DNS security, Internet of Things security, and more.

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