Palo Alto Networks (NASDAQ:PANW) Shares Rise 1.1% – Is It a Good Buy?

Palo Alto Networks, Inc. (NASDAQ:PANW) saw its stock price increase by 1.1% on Friday, closing at $182.70. The stock reached a high of $183.53 during the day. In total, 755,407 shares were traded, which is a significant drop of 71% compared to the average trading volume of 2,577,069 shares. Previously, the stock had closed at $180.74.

Analyst Insights on Palo Alto Networks

Palo Alto Networks has been a popular subject in recent research notes from various analysts. Cantor Fitzgerald recently reaffirmed an “overweight” rating, setting a price target of $222.50. Jefferies Financial Group raised their price target from $225.00 to $240.00, maintaining a “buy” recommendation. Similarly, BMO Capital Markets increased their target from $195.00 to $212.50, rating it as “outperform.” In contrast, Scotiabank lowered their price target from $400.00 to $200.00 but still has a “sector outperform” rating. Susquehanna also adjusted their target upward from $210.00 to $217.50, offering a “positive” outlook. Out of analysts who have evaluated the stock, two rated it as a sell, ten suggested holding it, thirty-one recommended buying, and one indicated a strong buy. Overall, Palo Alto Networks has a consensus rating of “Moderate Buy” and an average price target of $201.46.

Palo Alto Networks' Recent Performance

The company holds a market cap of $120.25 billion, with a price-to-earnings ratio of 23.86 and a price-to-earnings-growth ratio of 5.75. Its fifty-day moving average stands at $191.81, while the two-hundred-day moving average is $177.89. The latest financial report, released on November 20th, showed earnings per share (EPS) of $0.78, surpassing analyst expectations of $0.74 by $0.04. Palo Alto Networks reported quarterly revenue of $2.14 billion, exceeding the projected $2.12 billion, and reflecting a year-over-year increase of 13.9%. Analysts estimate that the company will post an EPS of 3.49 for the current year.

Insider Activity at Palo Alto Networks

In recent insider transactions, EVP Nir Zuk sold 336,000 shares of the company's stock on November 25th for an average price of $193.70, totaling approximately $65 million. Following this transaction, Zuk now holds 3,643,516 shares valued around $705 million, marking an 8.44% decrease in ownership. Additionally, CEO Nikesh Arora sold 163,172 shares on October 10th at an average price of $184.00, resulting in around $30 million in sales. This sale decreased Arora's holdings by 11.65%, leaving him with 1,237,430 shares valued at about $228 million. Currently, corporate insiders own 2.50% of the company's stock.

Institutional Investments in Palo Alto Networks

Recently, various institutional investors have adjusted their stakes in Palo Alto Networks. Mainstream Capital Management LLC acquired a new position valued at approximately $1.16 million. Alpha Cubed Investments LLC increased its stake by 16.4%, now owning 231,566 shares valued at $79 million after buying an additional 32,626 shares. Harvest Portfolios Group Inc. also purchased a new position worth around $24 million. Handelsbanken Fonder AB raised its stake by 3.8%, owning 196,700 shares valued at over $67 million after acquiring an additional 7,291 shares. Jennison Associates LLC significantly increased its holdings by 50.1%, now owning 3,147,215 shares valued at about $1.08 billion. Overall, institutional investors now hold 79.82% of Palo Alto Networks' stock.

About Palo Alto Networks

Palo Alto Networks, Inc. offers a range of cybersecurity solutions globally. These include firewall appliances and software, as well as Panorama, a security management solution that controls network security. The company also provides various subscription services focused on threats prevention, malware protection, mobile device security, URL filtering, and more.

PaloAlto, Stocks, Earnings