Hodges Capital Management Inc. Buys Shares of 3,784 Palo Alto Networks, Inc. $PANW

Key Points

• Hodges Capital Management opened a new position in Palo Alto Networks, buying 3,784 shares valued at about $607,000 in the first quarter.
• Institutional ownership remains very high, with hedge funds and other investors holding 79.82% of Palo Alto Networks’ shares. Several large firms, including Norges Bank and Vanguard, also increased or initiated positions.
• Analyst sentiment is bullish: multiple firms raised price targets, and the stock recently hit a record high amid strong demand for AI-driven cybersecurity products. Palo Alto Networks also reported better-than-expected quarterly earnings and revenue, with revenue up 31.1% year over year.

Hodges Capital Management Inc. purchased a new position in shares of Palo Alto Networks, Inc. (NASDAQ:PANW - Free Report) during the 1st quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The institutional investor purchased 3,784 shares of the network technology company's stock, valued at approximately $607,000.

Other hedge funds have also made changes to their positions in the company. Norges Bank purchased a new stake in shares of Palo Alto Networks in the 4th quarter valued at about $1,415,364,000. Vanguard Group Inc. lifted its position in Palo Alto Networks by 4.1% in the fourth quarter. Vanguard Group Inc. now owns 67,929,063 shares of the network technology company's stock valued at $12,512,533,000 after purchasing an additional 2,659,100 shares during the period. Bank of America Corp DE grew its holdings in Palo Alto Networks by 11.9% during the fourth quarter. Bank of America Corp DE now owns 19,375,486 shares of the network technology company's stock worth $3,568,964,000 after acquiring an additional 2,065,776 shares during the period. Employees Provident Fund Board acquired a new stake in shares of Palo Alto Networks in the fourth quarter valued at about $281,542,000. Finally, Eurizon Capital SGR S.p.A. acquired a new stake in shares of Palo Alto Networks in the 4th quarter worth approximately $164,968,000. Hedge funds and other institutional investors own 79.82% of the company's stock.

Insider Transactions at Palo Alto Networks

In other news, Director John P. Key sold 7,500 shares of the business's stock in a transaction that occurred on Friday, June 12th. The stock was sold at an average price of $279.24, for a total value of $2,094,300.00. Following the completion of the sale, the director directly owned 12,500 shares in the company, valued at approximately $3,490,500. The trade was a 37.50% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, CAO Josh D. Paul sold 900 shares of the company's stock in a transaction that occurred on Wednesday, July 1st. The shares were sold at an average price of $345.00, for a total value of $310,500.00. Following the sale, the chief accounting officer directly owned 79,644 shares in the company, valued at approximately $27,477,180. This represents a 1.12% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold 102,111 shares of company stock valued at $27,204,024 over the last 90 days. Corporate insiders own 1.40% of the company's stock.

Key Headlines Impacting Palo Alto Networks

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

• Positive Sentiment: Needham & Company raised its price target on Palo Alto Networks (PANW) to $425 from $350 and reiterated a Buy rating, implying further upside versus the current share price. Benzinga
• Positive Sentiment: BTIG and Wells Fargo both lifted price targets on Palo Alto Networks, citing stronger operating momentum and continued demand for AI-driven security solutions, helping push the stock to a record high. Palo Alto Networks stock hits record high as analysts raise price targets
• Positive Sentiment: Additional coverage highlighted PANW as one of the high-growth cybersecurity stocks to own, reinforcing the bullish sentiment around the name. Here’s Why Palo Alto (PANW) is Among the 8 High Growth Cybersecurity Stocks to Buy Now
• Neutral Sentiment: One recent article noted that while Palo Alto Networks remains a strong company, valuation may be stretched at current levels, which could temper enthusiasm for some investors. Palo Alto Networks: Great Company, But Don't Buy At Nosebleed Prices

Palo Alto Networks Trading Up 2.7%

PANW opened at $357.53 on Tuesday. Palo Alto Networks, Inc. has a 12-month low of $139.57 and a 12-month high of $368.17. The company has a debt-to-equity ratio of 0.04, a current ratio of 0.86 and a quick ratio of 0.86. The stock has a market capitalization of $291.39 billion, a PE ratio of 293.06, a P/E/G ratio of 12.92 and a beta of 0.91. The firm's fifty day moving average price is $258.43 and its 200 day moving average price is $201.50.

Palo Alto Networks (NASDAQ:PANW - Get Free Report) last released its earnings results on Tuesday, June 2nd. The network technology company reported $0.85 earnings per share for the quarter, topping the consensus estimate of $0.79 by $0.06. The company had revenue of $3 billion during the quarter, compared to the consensus estimate of $2.94 billion. Palo Alto Networks had a net margin of 7.95% and a return on equity of 10.53%. The company's revenue was up 31.1% on a year-over-year basis. During the same quarter in the previous year, the firm earned $0.37 EPS. 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. As a group, research analysts expect that Palo Alto Networks, Inc. will post 2.03 EPS for the current fiscal year.

Analyst Upgrades and Downgrades

A number of research firms recently commented on PANW. Morgan Stanley increased their price objective on Palo Alto Networks from $253.00 to $320.00 and gave the company an "overweight" rating in a research note on Wednesday, June 3rd. Arete Research upped their price target on shares of Palo Alto Networks from $185.00 to $433.00 and gave the stock a "buy" rating in a research report on Monday, June 29th. BTIG Research upped their target price on Palo Alto Networks from $333.00 to $380.00 and gave the stock a "buy" rating in a research report on Tuesday, June 30th. Berenberg Bank increased their target price on Palo Alto Networks from $290.00 to $360.00 and gave the company a "buy" rating in a research note on Wednesday, June 3rd. Finally, Truist Financial raised their target price on Palo Alto Networks from $275.00 to $375.00 and gave the company a "buy" rating in a report on Wednesday, June 3rd. One analyst has rated the stock with a Strong Buy rating, thirty-nine have assigned a Buy rating, eight have assigned a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat.com, Palo Alto Networks currently has a consensus rating of "Moderate Buy" and a consensus target price of $317.78.

About Palo Alto Networks

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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