Palo Alto Networks (NASDAQ:PANW) Shares Down 1.6% on Insider Selling

Key Points

• Palo Alto Networks shares fell 1.6% after insider selling, with the stock trading between $275.06 and $279.90 on volume below average.
• Multiple directors sold shares, including James J. Goetz, John P. Key, and Aparna Bawa, totaling notable reductions in their positions.
• Despite the selling, analysts remain generally positive: the stock carries a Moderate Buy consensus with an average price target of $306.59, and the company recently beat quarterly EPS and revenue estimates.

Palo Alto Networks, Inc. (NASDAQ:PANW - Get Free Report)'s share price was down 1.6% during trading on Tuesday following insider selling activity. The stock traded as low as $275.06 and last traded at $279.90. Approximately 4,972,843 shares traded hands during mid-day trading, a decline of 48% from the average daily volume of 9,502,720 shares. The stock had previously closed at $284.54.

Specifically, Director James J. Goetz sold 20,000 shares of the firm's stock in a transaction that occurred on Friday, June 12th. The stock was sold at an average price of $279.90, for a total transaction of $5,598,000.00. Following the completion of the transaction, the director owned 20,000 shares in the company, valued at $5,598,000. This trade represents a 50.00% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available through this link. Also, Director John P. Key sold 7,500 shares of the firm's stock in a transaction that occurred on Friday, June 12th. The shares were sold at an average price of $279.24, for a total value of $2,094,300.00. Following the transaction, the director owned 12,500 shares of the company's stock, valued at $3,490,500. This represents a 37.50% decrease in their position. The SEC filing for this sale provides additional information. In other Palo Alto Networks news, Director Aparna Bawa sold 536 shares of the firm's stock in a transaction that occurred on Friday, June 12th. The stock was sold at an average price of $280.00, for a total transaction of $150,080.00. Following the completion of the transaction, the director owned 7,704 shares in the company, valued at $2,157,120. This trade represents a 6.50% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available through this link.

Analysts Set New Price Targets

Several equities analysts have weighed in on PANW shares. Robert W. Baird set a $320.00 price target on Palo Alto Networks in a report on Wednesday, June 3rd. FBN Securities restated an "outperform" rating and set a $330.00 price target on shares of Palo Alto Networks in a report on Wednesday, June 3rd. Barclays reiterated an "overweight" rating and issued a $315.00 target price (up from $220.00) on shares of Palo Alto Networks in a report on Wednesday, June 3rd. Northland Securities lifted their target price on Palo Alto Networks from $190.00 to $302.00 and gave the stock a "market perform" rating in a report on Wednesday, June 3rd. Finally, The Goldman Sachs Group reiterated a "buy" rating and issued a $330.00 target price on shares of Palo Alto Networks in a report on Wednesday, June 3rd. Two equities research analysts have rated the stock with a Strong Buy rating, thirty-seven have given a Buy rating, eight have issued a Hold rating and one has given a Sell rating to the stock. According to MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and an average target price of $306.59.

Palo Alto Networks Price Performance

The company has a current ratio of 0.86, a quick ratio of 0.86 and a debt-to-equity ratio of 0.04. The stock has a market capitalization of $227.96 billion, a P/E ratio of 229.26, a price-to-earnings-growth ratio of 10.38 and a beta of 0.94. The stock has a 50 day moving average of $218.86 and a 200-day moving average of $189.95.

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

Institutional Investors Weigh In On Palo Alto Networks

A number of institutional investors and hedge funds have recently modified their holdings of the business. Lombard Odier Asset Management Europe Ltd lifted its stake in shares of Palo Alto Networks by 5.6% during the 1st quarter. Lombard Odier Asset Management Europe Ltd now owns 76,315 shares of the network technology company's stock worth $12,235,000 after acquiring an additional 4,024 shares during the last quarter. Rathbones Group PLC raised its position in Palo Alto Networks by 9.9% during the 1st quarter. Rathbones Group PLC now owns 942,520 shares of the network technology company's stock valued at $151,105,000 after purchasing an additional 84,915 shares in the last quarter. First Nebraska Trust Co bought a new stake in Palo Alto Networks during the 1st quarter valued at $534,000. Foguth Wealth Management LLC. bought a new stake in Palo Alto Networks during the 1st quarter valued at $168,000. Finally, Financial Solutions Advisory Group Inc. bought a new stake in Palo Alto Networks during the 1st quarter valued at $296,000. 79.82% of the stock is owned by institutional investors.

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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