Palo Alto Networks, Inc. $PANW Stake Decreased by Rhodes Investment Advisors Inc. ADV

Key Points

• Rhodes Investment Advisors cut its Palo Alto Networks stake by 44.9% in the third quarter, selling 2,575 shares and retaining 3,163 shares valued at approximately $1.26 million. Institutional investors overall still own about 79.8% of PANW.
• Palo Alto Networks reported quarterly revenue of $3.41 billion, up 34.5% year over year, and EPS of $1.02, beating analyst estimates. Management guided to fiscal 2027 EPS of $4.16–$4.19, while analysts maintain a “Moderate Buy” consensus.
• The stock traded near $405.57 after falling 3.4%, with a market capitalization of roughly $332 billion and a very elevated P/E ratio near 800. Recent insider selling and a consensus price target of $391.32 highlight potential valuation and profit-taking risks.

Rhodes Investment Advisors Inc. ADV trimmed its stake in shares of Palo Alto Networks, Inc. (NASDAQ:PANW - Free Report) by 44.9% in the third quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The firm owned 3,163 shares of the network technology company's stock after selling 2,575 shares during the period. Rhodes Investment Advisors Inc. ADV's holdings in Palo Alto Networks were worth $1,257,000 at the end of the most recent reporting period.

Several other hedge funds and other institutional investors have also made changes to their positions in PANW. BlackRock Inc. purchased a new position in Palo Alto Networks in the 2nd quarter valued at about $25,833,462,000. State Street Corp raised its holdings in Palo Alto Networks by 4.2% in the 2nd quarter. State Street Corp now owns 36,979,497 shares of the network technology company's stock valued at $12,610,748,000 after acquiring an additional 1,493,179 shares during the last quarter. Bank of America Corp DE lifted its stake in shares of Palo Alto Networks by 0.9% during the 2nd quarter. Bank of America Corp DE now owns 22,681,876 shares of the network technology company's stock worth $7,734,973,000 after purchasing an additional 205,123 shares during the period. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC lifted its stake in shares of Palo Alto Networks by 8.7% during the 2nd quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 8,778,963 shares of the network technology company's stock worth $2,993,802,000 after purchasing an additional 706,003 shares during the period. Finally, Legal & General Group Plc acquired a new stake in shares of Palo Alto Networks during the second quarter worth $1,968,304,000. Institutional investors and hedge funds own 79.82% of the company's stock.

Palo Alto Networks Stock Down 3.4%

Shares of PANW traded down $14.34 during midday trading on Wednesday, hitting $405.57. The company had a trading volume of 3,888,749 shares, compared to its average volume of 8,289,067. The stock has a market cap of $331.76 billion, a price-to-earnings ratio of 795.25, a PEG ratio of 11.71 and a beta of 0.93. The company's 50 day moving average price is $367.69 and its 200 day moving average price is $290.71. The company has a quick ratio of 0.87, a current ratio of 0.87 and a debt-to-equity ratio of 0.06. Palo Alto Networks, Inc. has a 52 week low of $139.57 and a 52 week high of $432.33.

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 the consensus estimate of $3.35 billion. During the same period last year, the firm earned $0.95 earnings per share. The company's revenue for the quarter was up 34.5% compared to the same quarter last year. 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. On average, equities research analysts predict that Palo Alto Networks, Inc. will post 2.31 EPS for the current year.

Wall Street Analysts Forecast Growth

Several equities analysts recently commented on the stock. DA Davidson upped their price target on shares of Palo Alto Networks from $345.00 to $420.00 and gave the stock a "buy" rating in a research report on Wednesday, September 2nd. FBN Securities reaffirmed an "outperform" rating on shares of Palo Alto Networks in a research report on Wednesday, July 1st. William Blair reissued an "outperform" rating on shares of Palo Alto Networks in a research report on Tuesday, June 16th. Susquehanna raised their price objective on Palo Alto Networks from $350.00 to $415.00 and gave the stock a "positive" rating in a report on Wednesday, September 2nd. Finally, Stephens set a $400.00 price objective on Palo Alto Networks and gave the company an "equal weight" rating in a research note on Wednesday, September 2nd. Thirty-eight analysts have rated the stock with a Buy rating and twelve have issued a Hold rating to the company. According to data from MarketBeat, Palo Alto Networks presently has a consensus rating of "Moderate Buy" and an average target price of $391.32.

Insiders Place Their Bets

In related news, CAO Josh Paul sold 400 shares of the company's stock in a transaction that occurred on Thursday, October 1st. The stock was sold at an average price of $395.70, for a total transaction of $158,280.00. Following the sale, the chief accounting officer directly owned 77,987 shares of the company's stock, valued at approximately $30,859,455.90. This represents a 0.51% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Also, Director John P. Key sold 2,500 shares of the firm's stock in a transaction on Monday, September 14th. The stock was sold at an average price of $376.03, for a total value of $940,075.00. Following the transaction, the director owned 10,000 shares in the company, valued at $3,760,300. This trade represents a 20.00% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last ninety days, insiders sold 53,960 shares of company stock worth $20,719,959. Corporate insiders own 1.40% of the company's stock.

More Palo Alto Networks News

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

• Positive Sentiment: AI and cybersecurity momentum: PANW benefited from a broad rally in cybersecurity stocks after Zscaler reaffirmed its fiscal 2027 earnings outlook. Investor interest is also increasing in security tools designed to protect AI agents, following CrowdStrike’s accelerator with Amazon Web Services and NVIDIA. Palo Alto Networks Stock Reaches New Highs: What's Happening?
• Positive Sentiment: Strong operating results and outlook: The company’s latest quarterly revenue increased 34.5% year over year to $3.41 billion, exceeding estimates, while earnings of $1.02 per share also topped expectations. Management’s fiscal 2027 EPS guidance of $4.16–$4.19 reinforces expectations for continued growth.
• Positive Sentiment: Favorable analyst positioning: Sell-side firms broadly maintain a constructive view, with 38 analysts issuing Buy ratings and 12 assigning Hold ratings. The overall consensus is “Moderate Buy,” although the average price target of $391.32 is below recent trading levels. Palo Alto Networks Rated Moderate Buy
• Neutral Sentiment: Long-term performance remains a selling point: A $1,000 investment held for ten years substantially outperformed the S&P 500, highlighting PANW’s successful expansion from firewall products into a broader cloud, endpoint and AI-security platform. However, past performance does not eliminate valuation risk. A $1,000 Bet on Palo Alto Networks Beat the S&P 500
• Negative Sentiment: Very elevated valuation: PANW’s market capitalization is approximately $332 billion, while its reported P/E ratio is near 800. The stock’s rally has pushed it above the consensus price target, increasing the risk of consolidation or profit-taking if growth expectations moderate.
• Negative Sentiment: Insider sale: Chief Accounting Officer Josh Paul sold 400 shares worth approximately $158,280. The transaction reduced his holdings by only 0.51%, so it is a limited signal, but it may add to short-term selling pressure. Palo Alto Networks Insider Selling

Palo Alto Networks Profile

Palo Alto Networks, Inc is a cybersecurity company that provides solutions designed to help organizations protect networks, endpoints, cloud environments, applications and users from cyber threats. Its offerings include next-generation firewalls, cloud-delivered security services, secure access service edge (SASE) solutions, endpoint protection and security operations tools.

The company also provides platforms and services for cloud security, threat intelligence, incident response, vulnerability management and the automation of security operations.

Want to see what other hedge funds are holding PANW? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Palo Alto Networks, Inc. (NASDAQ:PANW - Free Report).

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.