Clearbridge Investments LLC Sells 257,472 Shares of Palo Alto Networks, Inc. $PANW

Key Points

• Clearbridge Investments LLC reduced its Palo Alto Networks stake by 4.4% in the fourth quarter, selling 257,472 shares and leaving it with 5,601,625 shares valued at about $1.03 billion.
• Analyst sentiment remains mostly bullish, with several firms raising price targets after earnings and FBN Securities upgrading the stock to “strong-buy.” The consensus rating is “Moderate Buy” with an average target of $306.59.
• Palo Alto Networks reported strong quarterly results, beating EPS and revenue estimates and posting 31.1% year-over-year revenue growth. The company also raised guidance for fiscal 2026, even as some investors worry the stock has run up too far.

Clearbridge Investments LLC lessened its stake in shares of Palo Alto Networks, Inc. (NASDAQ:PANW - Free Report) by 4.4% in the 4th quarter, according to its most recent disclosure with the SEC. The institutional investor owned 5,601,625 shares of the network technology company's stock after selling 257,472 shares during the period. Palo Alto Networks comprises approximately 0.8% of Clearbridge Investments LLC's investment portfolio, making the stock its 22nd biggest holding. Clearbridge Investments LLC owned approximately 0.80% of Palo Alto Networks worth $1,031,819,000 at the end of the most recent reporting period.

Other institutional investors and hedge funds have also recently modified their holdings of the company. Darwin Wealth Management LLC bought a new stake in shares of Palo Alto Networks during the second quarter valued at approximately $25,000. Knuff & Co LLC bought a new stake in shares of Palo Alto Networks during the fourth quarter valued at approximately $26,000. Steph & Co. raised its stake in shares of Palo Alto Networks by 88.2% during the fourth quarter. Steph & Co. now owns 143 shares of the network technology company's stock valued at $26,000 after acquiring an additional 67 shares in the last quarter. Sittner & Nelson LLC raised its stake in shares of Palo Alto Networks by 73.8% during the fourth quarter. Sittner & Nelson LLC now owns 146 shares of the network technology company's stock valued at $27,000 after acquiring an additional 62 shares in the last quarter. Finally, Winch Advisory Services LLC raised its stake in shares of Palo Alto Networks by 96.1% during the third quarter. Winch Advisory Services LLC now owns 149 shares of the network technology company's stock valued at $30,000 after acquiring an additional 73 shares in the last quarter. Institutional investors own 79.82% of the company's stock.

Key Stories Impacting Palo Alto Networks

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

• Positive Sentiment: Analyst sentiment remains broadly constructive, with multiple firms raising price targets after earnings, including targets of $207 to $360 and several firms reiterating positive forecasts for PANW. HSBC adjusts price target on Palo Alto Networks
• Positive Sentiment: FBN Securities upgraded Palo Alto Networks from “outperform” to “strong-buy,” adding to the bullish analyst backdrop. FBN Securities upgrade
• Neutral Sentiment: Several articles note that PANW’s strong AI security narrative and recent earnings beat have kept the long-term story intact, even as the stock has cooled after its sharp rally. Barron's on Palo Alto Networks rally
• Negative Sentiment: Cybersecurity peers, especially CrowdStrike, sold off after earnings, and that weakness spilled over to PANW as investors demanded clearer proof of AI monetization and more room for upside after the rally. CrowdStrike sinks, weighing on Palo Alto Networks
• Negative Sentiment: Some commentary argues PANW’s stock has run too far too fast, suggesting valuation concerns and profit-taking are pressuring shares despite solid fundamentals. Seeking Alpha on Palo Alto Networks valuation

Analyst Ratings Changes

Several equities analysts recently issued reports on PANW shares. Berenberg Bank lifted their price objective on shares of Palo Alto Networks from $290.00 to $360.00 and gave the company a "buy" rating in a report on Wednesday. Deutsche Bank Aktiengesellschaft lifted their price objective on shares of Palo Alto Networks from $220.00 to $350.00 and gave the company a "buy" rating in a report on Wednesday. Barclays reissued an "overweight" rating and set a $315.00 price objective (up from $220.00) on shares of Palo Alto Networks in a report on Wednesday. BNP Paribas Exane lifted their price objective on shares of Palo Alto Networks from $220.00 to $330.00 and gave the company an "outperform" rating in a report on Wednesday. Finally, Argus lifted their price objective on shares of Palo Alto Networks from $222.00 to $320.00 in a report on Friday. Two research analysts have rated the stock with a Strong Buy rating, thirty-seven have given a Buy rating, eight have given a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat.com, the stock has an average rating of "Moderate Buy" and a consensus price target of $306.59.

Palo Alto Networks Stock Performance

Shares of PANW stock opened at $272.05 on Friday. The company's 50 day moving average is $205.03 and its 200 day moving average is $186.58. The company has a quick ratio of 1.04, a current ratio of 0.86 and a debt-to-equity ratio of 0.04. Palo Alto Networks, Inc. has a 52-week low of $139.57 and a 52-week high of $302.95. The firm has a market cap of $221.72 billion, a price-to-earnings ratio of 222.99, a PEG ratio of 10.01 and a beta of 0.94.

Palo Alto Networks (NASDAQ:PANW - Get Free Report) last released its quarterly earnings results on Tuesday, June 2nd. The network technology company reported $0.85 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.79 by $0.06. Palo Alto Networks had a net margin of 7.95% and a return on equity of 10.53%. The business had revenue of $3 billion for the quarter, compared to analyst estimates of $2.94 billion. During the same period in the previous year, the company earned $0.37 earnings per share. The business's revenue for the quarter was up 31.1% on a year-over-year basis. Palo Alto Networks has set its FY 2026 guidance at 3.770-3.790 EPS and its Q4 2026 guidance at 0.960-0.980 EPS. On average, sell-side analysts anticipate that Palo Alto Networks, Inc. will post 2.15 EPS for the current fiscal year.

Insiders Place Their Bets

In other Palo Alto Networks news, EVP Dipak Golechha sold 5,000 shares of Palo Alto Networks stock in a transaction on Wednesday, April 1st. The shares were sold at an average price of $160.42, for a total value of $802,100.00. Following the transaction, the executive vice president directly owned 150,250 shares of the company's stock, valued at approximately $24,103,105. The trade was a 3.22% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, CAO Josh D. Paul sold 1,100 shares of Palo Alto Networks stock in a transaction on Wednesday, April 1st. The stock was sold at an average price of $161.40, for a total transaction of $177,540.00. Following the completion of the transaction, the chief accounting officer directly owned 83,136 shares in the company, valued at $13,418,150.40. This represents a 1.31% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last ninety days, insiders sold 72,076 shares of company stock valued at $17,930,587. 1.40% of the stock is currently owned by company insiders.

Palo Alto Networks Profile

Palo Alto Networks NASDAQ: PANW is a cybersecurity company founded in 2005 and headquartered in Santa Clara, California. The firm develops a broad suite of security products and services designed to prevent successful cyberattacks and protect enterprise networks, clouds, and endpoints. Built around a platform strategy, its offerings target threat prevention, detection, response and governance across hybrid and multi-cloud environments.

The company's product portfolio includes next‑generation firewalls as a core on‑premises capability, alongside cloud‑delivered security services and software for securing public and private clouds.

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