Investors Buy Large Volume of Call Options on Palo Alto Networks (NASDAQ:PANW)

Key Points

• On Wednesday, a significant volume of 72,234 call options on Palo Alto Networks was traded, representing an increase of approximately 38% compared to typical daily volumes.
• Multiple analysts have set price targets for Palo Alto Networks, with Jefferies Financial Group leading at $235.00 and a consensus average target of $211.52, reflecting a generally positive outlook from 28 analysts.
• In recent insider transactions, EVP Lee Klarich sold 120,774 shares for over $20 million, resulting in a significant decrease in his holdings, while institutional investors currently own 79.82% of the company's stock.

Palo Alto Networks, Inc. (NASDAQ:PANW - Get Free Report) was the recipient of some unusual options trading on Wednesday. Stock traders bought 72,234 call options on the company. Thisrepresentsanincreaseofapproximately38% compared to the typical daily volume of 52,227 call options.

Analysts Set New Price Targets

Several research analysts have issued reports on the company. Jefferies Financial Group set a $235.00 price target on Palo Alto Networks in a report on Tuesday, July 29th. Roth Capital assumed coverage on Palo Alto Networks in a report on Thursday, May 15th. They issued a "neutral" rating and a $210.00 price target on the stock. Northland Securities cut their price target on Palo Alto Networks from $210.00 to $177.00 and set a "market perform" rating on the stock in a report on Wednesday, May 21st. Cantor Fitzgerald reiterated an "overweight" rating and issued a $223.00 price target on shares of Palo Alto Networks in a report on Friday, August 15th. Finally, Truist Financial set a $220.00 price target on Palo Alto Networks and gave the stock a "buy" rating in a report on Tuesday. Twenty-eight investment analysts have rated the stock with a Buy rating, eleven have given a Hold rating and two have assigned a Sell rating to the company. According to data from MarketBeat, Palo Alto Networks presently has an average rating of "Moderate Buy" and an average target price of $211.52.

Insider Transactions at Palo Alto Networks

In related news, EVP Lee Klarich sold 120,774 shares of the company's stock in a transaction dated Monday, August 4th. The stock was sold at an average price of $171.58, for a total transaction of $20,722,402.92. Following the sale, the executive vice president owned 206,718 shares in the company, valued at $35,468,674.44. This represents a 36.88% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, CAO Josh D. Paul sold 600 shares of the company's stock in a transaction dated Tuesday, July 1st. The shares were sold at an average price of $204.00, for a total value of $122,400.00. Following the sale, the chief accounting officer owned 41,433 shares in the company, valued at approximately $8,452,332. The trade was a 1.43% decrease in their position. The disclosure for this sale can be found here. In the last three months, insiders have sold 669,248 shares of company stock worth $126,423,337. 2.50% of the stock is currently owned by insiders.

Institutional Trading of Palo Alto Networks

Institutional investors and hedge funds have recently modified their holdings of the business. Darwin Wealth Management LLC purchased a new stake in shares of Palo Alto Networks during the second quarter valued at approximately $25,000. Whipplewood Advisors LLC grew its holdings in Palo Alto Networks by 6,400.0% during the second quarter. Whipplewood Advisors LLC now owns 130 shares of the network technology company's stock valued at $27,000 after purchasing an additional 128 shares during the period. Transce3nd LLC bought a new position in Palo Alto Networks during the fourth quarter valued at $25,000. Briaud Financial Planning Inc bought a new position in Palo Alto Networks during the second quarter valued at $28,000. Finally, Howard Hughes Medical Institute bought a new position in Palo Alto Networks during the second quarter valued at $29,000. 79.82% of the stock is owned by hedge funds and other institutional investors.

Palo Alto Networks Stock Performance

Shares of Palo Alto Networks stock traded up $2.87 on Wednesday, hitting $184.43. The company had a trading volume of 13,459,192 shares, compared to its average volume of 6,451,787. The stock has a market capitalization of $122.98 billion, a price-to-earnings ratio of 114.91, a P/E/G ratio of 4.33 and a beta of 0.94. Palo Alto Networks has a 1 year low of $144.15 and a 1 year high of $210.39. The stock has a 50 day moving average of $191.31 and a 200-day moving average of $186.32.

Palo Alto Networks (NASDAQ:PANW - Get Free Report) last issued its quarterly earnings data on Monday, August 18th. The network technology company reported $0.95 EPS for the quarter, topping the consensus estimate of $0.89 by $0.06. The firm had revenue of $2.54 billion during the quarter, compared to the consensus estimate of $2.50 billion. Palo Alto Networks had a return on equity of 18.55% and a net margin of 12.30%.The company's quarterly revenue was up 15.8% compared to the same quarter last year. During the same period in the prior year, the business posted $0.75 earnings per share. Palo Alto Networks has set its FY 2026 guidance at 3.750-3.850 EPS. Q1 2026 guidance at 0.880-0.900 EPS. Equities analysts anticipate that Palo Alto Networks will post 1.76 earnings per share for the current year.

About Palo Alto Networks

Palo Alto Networks, Inc provides cybersecurity solutions worldwide. The company offers firewall appliances and software; and Panorama, a security management solution for the global control of network security platform as a virtual or a physical appliance. It also provides subscription services covering the areas of threat prevention, malware and persistent threat, URL filtering, laptop and mobile device protection, DNS security, Internet of Things security, SaaS security API, and SaaS security inline, as well as threat intelligence, and data loss prevention.

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