Jefferies Financial Group Issues Pessimistic Forecast for Palo Alto Networks (NASDAQ:PANW) Stock Price

Key Points

• Jefferies cut its Palo Alto Networks price target from $450 to $400 but kept a Buy rating; the new target implies 23.74% upside from the prior close.
• PANW shares fell 3.4% to $323.26 in Thursday trading. The stock’s average analyst rating is “Moderate Buy,” with a consensus target of $397.49.
• The company beat quarterly estimates, reporting adjusted EPS of $1.02 versus $0.98 expected and revenue of $3.41 billion versus $3.35 billion expected; revenue rose 34.5% year over year.

Palo Alto Networks (NASDAQ:PANW - Get Free Report) had its target price dropped by equities researchers at Jefferies Financial Group from $450.00 to $400.00 in a research note issued to investors on Thursday, Benzinga reports. The brokerage currently has a "buy" rating on the network technology company's stock. Jefferies Financial Group's price target points to a potential upside of 23.74% from the stock's previous close.

PANW has been the subject of a number of other reports. Oppenheimer reiterated an "outperform" rating and set a $450.00 price target (up from $400.00) on shares of Palo Alto Networks in a report on Wednesday, September 2nd. Deutsche Bank restated a "buy" rating and issued a $430.00 price objective (up from $350.00) on shares of Palo Alto Networks in a report on Wednesday, September 2nd. Loop Capital upped their target price on shares of Palo Alto Networks from $290.00 to $350.00 and gave the company a "hold" rating in a research report on Friday, August 21st. Needham & Company LLC reaffirmed a "buy" rating and set a $425.00 target price on shares of Palo Alto Networks in a research note on Wednesday, September 2nd. Finally, Barclays reaffirmed an "overweight" rating and set a $375.00 target price (up from $370.00) on shares of Palo Alto Networks in a research note on Wednesday, September 2nd. Thirty-nine analysts have rated the stock with a Buy rating and eleven have given a Hold rating to the stock. According to data from MarketBeat, Palo Alto Networks has an average rating of "Moderate Buy" and an average price target of $397.49.

Palo Alto Networks Trading Down 3.4%

Shares of NASDAQ PANW traded down $11.21 during midday trading on Thursday, reaching $323.26. 2,994,785 shares of the stock were exchanged, compared to its average volume of 7,994,347. The stock has a market capitalization of $264.67 billion, a P/E ratio of 634.64, a PEG ratio of 9.36 and a beta of 0.96. The company has a debt-to-equity ratio of 0.06, a quick ratio of 0.87 and a current ratio of 0.87. The company has a 50 day simple moving average of $367.81 and a 200 day simple moving average of $275.82. Palo Alto Networks has a twelve month low of $139.57 and a twelve month high of $432.33.

Palo Alto Networks (NASDAQ:PANW - Get Free Report) last released its quarterly earnings data on Tuesday, September 1st. The network technology company reported $1.02 EPS for the quarter, beating analysts' consensus estimates of $0.98 by $0.04. The firm had revenue of $3.41 billion for the quarter, compared to analysts' expectations of $3.35 billion. Palo Alto Networks had a return on equity of 8.50% and a net margin of 2.67%. The firm's quarterly revenue was up 34.5% on a year-over-year basis. During the same period in the prior year, the firm posted $0.95 earnings per share. Palo Alto Networks has set its FY 2027 guidance at 4.160-4.190 EPS and its Q1 2027 guidance at 0.960-0.980 EPS. As a group, equities analysts expect that Palo Alto Networks will post 2.32 earnings per share for the current year.

Insider Buying and Selling at Palo Alto Networks

In related news, Director James J. Goetz sold 20,000 shares of the company's stock in a transaction that occurred on Thursday, September 17th. The shares were sold at an average price of $376.68, for a total transaction of $7,533,600.00. The sale was disclosed in a filing with the SEC, which can be accessed through this hyperlink. Also, Director Aparna Bawa sold 250 shares of the company's stock in a transaction that occurred on Friday, October 9th. The stock was sold at an average price of $412.28, for a total transaction of $103,070.00. Following the sale, the director directly owned 4,427 shares in the company, valued at approximately $1,825,163.56. The trade was a 5.35% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last three months, insiders have sold 54,210 shares of company stock valued at $20,823,029. Corporate insiders own 0.55% of the company's stock.

Hedge Funds Weigh In On Palo Alto Networks

Hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Meeder Advisory Services Inc. grew its stake in Palo Alto Networks by 16.8% during the 3rd quarter. Meeder Advisory Services Inc. now owns 25,588 shares of the network technology company's stock worth $10,167,000 after purchasing an additional 3,675 shares in the last quarter. NWK Group Inc. purchased a new position in shares of Palo Alto Networks in the 3rd quarter valued at about $1,514,000. Allianz SE boosted its stake in shares of Palo Alto Networks by 1,278.8% in the 3rd quarter. Allianz SE now owns 30,651 shares of the network technology company's stock valued at $12,178,000 after buying an additional 28,428 shares during the period. Ilmarinen Mutual Pension Insurance Co raised its holdings in Palo Alto Networks by 3.6% in the third quarter. Ilmarinen Mutual Pension Insurance Co now owns 112,428 shares of the network technology company's stock valued at $44,669,000 after acquiring an additional 3,858 shares in the last quarter. Finally, Intesa Sanpaolo Wealth Management raised its holdings in Palo Alto Networks by 2.4% in the third quarter. Intesa Sanpaolo Wealth Management now owns 16,479 shares of the network technology company's stock valued at $6,547,000 after acquiring an additional 385 shares in the last quarter. Hedge funds and other institutional investors own 79.82% of the company's stock.

About Palo Alto Networks

Palo Alto Networks, Inc. is a cybersecurity company that provides products and services to help organizations protect their networks, cloud environments, devices and applications. Its offerings include next-generation firewalls, cloud security tools, secure access services and platforms for detecting and responding to cyber threats. The company's product portfolio includes Prisma for cloud and network security and Cortex for security operations, including threat detection and response. It also provides cybersecurity consulting and incident-response services through Unit 42.

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