StockNews.com Upgrades Palo Alto Networks (NASDAQ:PANW) to Buy

On December 18, 2024, research analysts at StockNews.com upgraded Palo Alto Networks (NASDAQ:PANW) from a previously assigned "hold" rating to a "buy" rating in a recent report.

Several other research firms have also weighed in on PANW. Bank of America increased its price target for shares of Palo Alto Networks from $200.00 to $215.00 and rated the company as "neutral" in a research report released on November 21st. Similarly, the Royal Bank of Canada reaffirmed an "outperform" rating while setting a target price of $225.00 for the shares on the same date. Jefferies Financial Group also raised its price objective for Palo Alto Networks from $200.00 to $225.00, designating the company with a "buy" rating in a report issued on November 19th. Additionally, Oppenheimer reissued an "outperform" rating with a target price of $225.00 in their report published on November 21st. Barclays, on the other hand, set a price target of $212.50, up from a previous $205.00, while giving the company an "overweight" rating in a report dated November 11th.

An analysis of analysts' ratings shows a varied approach: two analysts have issued a "sell" rating, ten have given a "hold" rating, thirty-two provided a "buy" rating, and one issued a "strong buy" rating. According to MarketBeat data, the consensus rating currently stands at "Moderate Buy" with an average price target of $201.03.

Palo Alto Networks Stock Update

The market performance for NASDAQ: PANW on Monday saw it open at $201.24. Over the past year, Palo Alto Networks has experienced a twelve-month low of $130.04 and a twelve-month high of $207.24. The company has a market capitalization of $66.03 billion, a price-to-earnings ratio of 26.20, a PEG ratio of 5.75, and a beta of 1.12. Its fifty-day simple moving average rests at $191.65, while the two-hundred day simple moving average is at $175.11.

Palo Alto Networks announced its quarterly earnings results on November 20th. The cybersecurity firm reported earnings per share (EPS) of $0.78, which exceeded analysts' expectations of $0.74 by $0.04. Revenue for the quarter was recorded at $2.14 billion, surpassing predictions of $2.12 billion. The company reported a return on equity of 23.36% and a net margin of 32.99%, with revenue increasing by 13.9% compared to the same quarter last year. This year's EPS forecast stands at 3.49, according to research analysts.

Insider Transactions

In related news, CEO Nikesh Arora sold 163,172 shares of the company's stock on October 10th at an average price of $184.00, totaling approximately $30,022,832.14. Following this sale, he maintains ownership of 1,237,430 shares, valued at around $227,680,932.85, reflecting an 11.65% decrease in his ownership stake. This transaction was officially disclosed in a filing with the SEC. Moreover, Executive Vice President Nir Zuk sold 336,000 shares on November 25th, with an average price of $193.70 for a total value of approximately $65,081,520.00. Zuk now holds 3,643,516 shares, amounting to roughly $705,730,831.62, which indicates an 8.44% reduction in his position. Over the preceding three months, company insiders have sold a total of 571,172 shares of company stock valued at $107,074,352. Company insiders currently own approximately 2.50% of the stock.

Institutional Investor Activity

Recently, various institutional investors have adjusted their holdings in Palo Alto Networks. Capital Advisors Ltd. LLC increased its stake by 113.9% during the third quarter, owning 77 shares worth $26,000 after acquiring 41 additional shares. Sound Income Strategies LLC raised its position by 352.6%, now holding 86 shares valued at $29,000 after an increase of 67 shares. Strategic Investment Solutions Inc. IL also boosted its stake by 177.4%, owning 86 shares worth the same amount after purchasing 55 more shares. Itau Unibanco Holding S.A. made a new acquisition in shares valued at around $29,000 during this period. True Wealth Design LLC grew its stake significantly, owning 91 shares worth $31,000 after acquiring an additional 88 shares. Currently, institutional investors and hedge funds hold 79.82% of the stock.

Company Overview

Palo Alto Networks, Inc. is a global provider of cybersecurity solutions. The company offers firewall appliances and software, along with Panorama, a security management solution that oversees network security either as a physical or virtual appliance. Their suite of subscription services encompasses threat prevention, malware protection, URL filtering, and more, aimed at safeguarding mobile devices, IoT, and SaaS applications, as well as preventing data loss and providing threat intelligence.

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