Bank of America Corp DE Has $7.73 Billion Stock Holdings in Palo Alto Networks, Inc. $PANW

Key Points

• Bank of America increased its Palo Alto Networks stake by 0.9% in the second quarter to 22.68 million shares valued at approximately $7.73 billion, representing about 2.78% of PANW’s outstanding stock.
• Palo Alto Networks reported quarterly revenue of $3.41 billion, up 34.5% year over year, and earnings of $1.02 per share, exceeding analyst expectations. Next-Generation Security annual recurring revenue rose 63% to $9.10 billion.
• Despite strong growth and a “Moderate Buy” consensus rating with a $387.60 target, PANW trades at a highly elevated valuation, while recent insider sales and a reported GAAP net loss highlight profitability and execution risks.

Bank of America Corp DE increased its holdings in shares of Palo Alto Networks, Inc. (NASDAQ:PANW - Free Report) by 0.9% in the second quarter, according to the company in its most recent filing with the SEC. The institutional investor owned 22,681,876 shares of the network technology company's stock after purchasing an additional 205,123 shares during the quarter. Palo Alto Networks accounts for 0.5% of Bank of America Corp DE's holdings, making the stock its 27th biggest position. Bank of America Corp DE owned approximately 2.78% of Palo Alto Networks worth $7,734,973,000 as of its most recent SEC filing.

A number of other institutional investors have also recently bought and sold shares of the stock. Magnolia Capital Advisors LLC acquired a new position in shares of Palo Alto Networks in the second quarter valued at approximately $2,207,000. Port Capital LLC acquired a new stake in shares of Palo Alto Networks during the second quarter worth $203,000. American Capital Management Inc. bought a new stake in Palo Alto Networks in the 2nd quarter valued at $195,382,000. Freestone Grove Partners LP bought a new stake in Palo Alto Networks in the 2nd quarter valued at $4,717,000. Finally, Caisse de depot et placement du Quebec acquired a new position in Palo Alto Networks in the 2nd quarter worth $12,454,000. Institutional investors own 79.82% of the company's stock.

Palo Alto Networks Stock Performance

Shares of NASDAQ PANW opened at $330.65 on Monday. 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 stock has a 50 day moving average price of $349.25 and a 200 day moving average price of $261.88. The stock has a market capitalization of $270.47 billion, a PE ratio of 648.35, a price-to-earnings-growth ratio of 9.58 and a beta of 0.91. Palo Alto Networks, Inc. has a 52 week low of $139.57 and a 52 week high of $398.88.

Palo Alto Networks (NASDAQ:PANW - Get Free Report) last posted its quarterly earnings results on Tuesday, September 1st. The network technology company reported $1.02 EPS for the quarter, topping analysts' consensus estimates of $0.98 by $0.04. Palo Alto Networks had a return on equity of 8.50% and a net margin of 2.67%.The business had revenue of $3.41 billion during the quarter, compared to analysts' expectations of $3.35 billion. During the same quarter last year, the company posted $0.95 earnings per share. Palo Alto Networks's quarterly revenue was up 34.5% on a year-over-year basis. 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. Analysts predict that Palo Alto Networks, Inc. will post 2.29 earnings per share for the current fiscal year.

Key Palo Alto Networks News

Here are the key news stories impacting Palo Alto Networks this week:

• Positive Sentiment: CEO Nikesh Arora said artificial intelligence is creating an estimated $1 trillion cybersecurity modernization opportunity, because legacy systems are not designed to defend against machine-speed attacks. The comments support the long-term demand outlook for Palo Alto Networks’ security platform. Palo Alto CEO discusses the AI security gap
• Positive Sentiment: Wedbush initiated coverage with an “outperform” rating and a $400 price target, implying approximately 21% upside from the referenced trading level. The call reflects confidence in PANW’s platform expansion and cybersecurity growth prospects.
• Positive Sentiment: Recent quarterly results showed revenue of $3.41 billion, up 34% year over year, while Next-Generation Security annual recurring revenue climbed 63% to $9.10 billion. Remaining performance obligations also increased 34% to $21.2 billion, indicating substantial contracted demand. Palo Alto Networks reports NGS ARR growth
• Neutral Sentiment: The Goldman Sachs Communacopia presentation provided additional management commentary, but no new material financial guidance or catalyst was identified in the supplied information. Palo Alto Networks conference transcript
• Negative Sentiment: Investors remain concerned that the quarter included a $282 million GAAP net loss, with acquisition costs potentially limiting near-term earnings conversion despite strong ARR growth. The stock also trades at a very elevated earnings multiple, increasing sensitivity to execution and profitability concerns. Why Palo Alto Networks shares are trading lower

Insider Activity at Palo Alto Networks

In other news, Director Aparna Bawa sold 632 shares of the firm's stock in a transaction dated Monday, June 29th. The shares were sold at an average price of $318.67, for a total transaction of $201,399.44. Following the completion of the sale, the director owned 6,727 shares in the company, valued at approximately $2,143,693.09. This trade represents a 8.59% decrease in their position. The transaction was disclosed in a filing with the SEC, which can be accessed through this link. Also, CAO Josh D. Paul sold 900 shares of Palo Alto Networks stock in a transaction dated Wednesday, July 1st. The stock was sold at an average price of $345.00, for a total transaction of $310,500.00. Following the sale, the chief accounting officer directly owned 79,644 shares of the company's stock, valued at $27,477,180. The trade was a 1.12% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last three months, insiders sold 9,667 shares of company stock valued at $3,058,443. 1.40% of the stock is owned by company insiders.

Analysts Set New Price Targets

Several analysts have issued reports on PANW shares. Citigroup downgraded Palo Alto Networks from a "buy" rating to a "neutral" rating in a research note on Monday, September 7th. Piper Sandler reiterated an "overweight" rating and set a $410.00 price objective (up from $345.00) on shares of Palo Alto Networks in a report on Wednesday, September 2nd. Citizens Jmp lifted their target price on Palo Alto Networks from $320.00 to $415.00 and gave the company a "market outperform" rating in a research report on Wednesday, August 12th. BTIG Research boosted their target price on Palo Alto Networks from $380.00 to $404.00 and gave the company a "buy" rating in a research note on Wednesday, September 2nd. Finally, UBS Group restated a "neutral" rating and issued a $390.00 target price (up from $300.00) on shares of Palo Alto Networks in a research note on Wednesday, August 19th. Thirty-nine investment analysts have rated the stock with a Buy rating and eleven have assigned a Hold rating to the company's stock. Based on data from MarketBeat, Palo Alto Networks presently has an average rating of "Moderate Buy" and a consensus price target of $387.60.

Palo Alto Networks Company Profile

Palo Alto Networks, Inc is a cybersecurity company that provides security products and services to businesses, governments and other organizations worldwide. The company helps customers protect networks, cloud environments, endpoints, applications and connected devices from cyber threats.

Its portfolio includes next-generation firewalls and network security technologies, as well as cloud-delivered security solutions such as Prisma Access and Prisma Cloud. Palo Alto Networks also offers Cortex products for endpoint protection, security operations, threat detection and response, and automation.

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