Palo Alto Networks, Inc. (NASDAQ:PANW) Sees Large Increase in Short Interest

Key Points

• Palo Alto Networks experienced a substantial 29.0% increase in short interest in July, totaling approximately 34.38 million shares shorted as of July 31st, indicating a potential bearish sentiment among investors.
• The company reported quarterly earnings of $0.95 EPS, exceeding estimates, and a revenue of $2.54 billion, which is a 15.8% increase year-over-year.
• Institutional investors hold 79.82% of Palo Alto Networks' stock, with notable recent purchases including a new stake worth $810 million by Nuveen LLC.

Palo Alto Networks, Inc. (NASDAQ:PANW - Get Free Report) was the recipient of a large increase in short interest in July. As of July 31st, there was short interest totaling 34,380,000 shares, anincreaseof29.0% from the July 15th total of 26,660,000 shares. Based on an average daily trading volume, of 6,690,000 shares, the days-to-cover ratio is presently 5.1 days. Approximately5.3% of the company's shares are short sold. Approximately5.3% of the company's shares are short sold. Based on an average daily trading volume, of 6,690,000 shares, the days-to-cover ratio is presently 5.1 days.

Palo Alto Networks Stock Performance

PANW stock traded down $1.11 during midday trading on Thursday, hitting $183.32. 8,173,137 shares of the company's stock were exchanged, compared to its average volume of 13,798,669. Palo Alto Networks has a one year low of $144.15 and a one year high of $210.39. The company has a market cap of $122.24 billion, a PE ratio of 114.22, a price-to-earnings-growth ratio of 4.50 and a beta of 0.94. The stock's fifty day moving average price is $190.82 and its 200-day moving average price is $186.31.

Palo Alto Networks (NASDAQ:PANW - Get Free Report) last released its quarterly earnings results on Monday, August 18th. The network technology company reported $0.95 EPS for the quarter, topping analysts' consensus estimates of $0.89 by $0.06. Palo Alto Networks had a return on equity of 17.66% and a net margin of 12.30%.The company had revenue of $2.54 billion for the quarter, compared to analyst estimates of $2.50 billion. During the same quarter last year, the firm posted $0.75 earnings per share. Palo Alto Networks's revenue was up 15.8% compared to the same quarter last year. Palo Alto Networks has set its FY 2026 guidance at 3.750-3.850 EPS. Q1 2026 guidance at 0.880-0.900 EPS. On average, analysts expect that Palo Alto Networks will post 1.76 EPS for the current year.

Insider Activity

In other news, EVP Dipak Golechha sold 5,000 shares of Palo Alto Networks stock in a transaction on Monday, June 23rd. The stock was sold at an average price of $201.85, for a total value of $1,009,250.00. Following the completion of the sale, the executive vice president directly owned 101,135 shares of the company's stock, valued at approximately $20,414,099.75. This trade represents a 4.71% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, CAO Josh D. Paul sold 800 shares of the business's stock in a transaction on Friday, June 20th. The stock was sold at an average price of $201.05, for a total value of $160,840.00. Following the sale, the chief accounting officer owned 42,033 shares of the company's stock, valued at approximately $8,450,734.65. The trade was a 1.87% decrease in their position. The disclosure for this sale can be found here. In the last 90 days, insiders have sold 669,248 shares of company stock worth $126,423,337. 2.50% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently made changes to their positions in PANW. Nuveen LLC bought a new stake in shares of Palo Alto Networks in the first quarter worth $810,047,000. Northern Trust Corp lifted its position in Palo Alto Networks by 133.7% during the 4th quarter. Northern Trust Corp now owns 7,842,647 shares of the network technology company's stock worth $1,427,048,000 after buying an additional 4,486,654 shares in the last quarter. Norges Bank acquired a new position in shares of Palo Alto Networks during the 2nd quarter worth about $675,865,000. Kingstone Capital Partners Texas LLC acquired a new position in shares of Palo Alto Networks during the 2nd quarter worth about $633,068,000. Finally, Nuveen Asset Management LLC grew its holdings in shares of Palo Alto Networks by 98.0% in the 4th quarter. Nuveen Asset Management LLC now owns 6,158,580 shares of the network technology company's stock valued at $1,120,615,000 after acquiring an additional 3,047,625 shares in the last quarter. Institutional investors and hedge funds own 79.82% of the company's stock.

Wall Street Analysts Forecast Growth

Several equities analysts recently weighed in on PANW shares. Westpark Capital restated a "hold" rating on shares of Palo Alto Networks in a report on Tuesday. Barclays reiterated an "overweight" rating and set a $215.00 target price (up previously from $210.00) on shares of Palo Alto Networks in a research report on Tuesday. Morgan Stanley raised their price target on Palo Alto Networks from $205.00 to $210.00 and gave the stock an "overweight" rating in a research report on Wednesday. TD Securities reaffirmed a "buy" rating and set a $230.00 price objective on shares of Palo Alto Networks in a research note on Wednesday, May 21st. Finally, DA Davidson reissued a "buy" rating and issued a $215.00 target price on shares of Palo Alto Networks in a research note on Tuesday. Twenty-eight equities research analysts have rated the stock with a Buy rating, eleven have issued a Hold rating and two have issued a Sell rating to the stock. Based on data from MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and an average price target of $211.52.

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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