Palo Alto Networks (NASDAQ:PANW) Shares Down 2% - Time to Sell?

Key Points

• Palo Alto Networks shares fell 2% to about $317.32 in Monday trading, with volume 43% below the average daily level.
• Analyst sentiment remains positive, with a consensus “Moderate Buy” rating and average price target of $331.48; several firms recently raised their targets to between $305 and $350.
• The company exceeded quarterly estimates, reporting $0.85 in EPS and $3 billion in revenue, up 31.1% year over year. However, its valuation is elevated at a P/E ratio of 260.10, while insiders have sold more than $27 million of stock over the past 90 days.

Palo Alto Networks, Inc. (NASDAQ:PANW - Get Free Report) shares traded down 2% during trading on Monday . The stock traded as low as $316.70 and last traded at $317.32. 5,126,081 shares traded hands during mid-day trading, a decline of 43% from the average daily volume of 9,056,118 shares. The stock had previously closed at $323.79.

Analyst Upgrades and Downgrades

A number of research analysts have weighed in on PANW shares. Scotiabank reissued a "sector outperform" rating and issued a $320.00 target price (up from $180.00) on shares of Palo Alto Networks in a report on Wednesday, June 3rd. Susquehanna restated a "positive" rating and set a $350.00 price target (up from $200.00) on shares of Palo Alto Networks in a research note on Wednesday, June 3rd. The Goldman Sachs Group reaffirmed a "buy" rating and set a $330.00 price target on shares of Palo Alto Networks in a research report on Wednesday, June 3rd. Mizuho increased their price objective on shares of Palo Alto Networks from $265.00 to $305.00 and gave the stock an "outperform" rating in a research note on Wednesday, June 3rd. Finally, TD Cowen reissued a "buy" rating and issued a $330.00 price objective (up from $255.00) on shares of Palo Alto Networks in a report on Wednesday, June 3rd. One equities research analyst has rated the stock with a Strong Buy rating, forty have given a Buy rating, seven have given a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and an average target price of $331.48.

Palo Alto Networks Stock Down 2.0%

The company has a 50-day moving average of $300.79 and a two-hundred day moving average of $217.83. 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 company has a market capitalization of $258.62 billion, a PE ratio of 260.10, a P/E/G ratio of 12.02 and a beta of 0.91.

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 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 business had revenue of $3 billion during the quarter, compared to analysts' expectations of $2.94 billion. During the same quarter in the prior year, the business posted $0.37 earnings per share. The business's quarterly revenue was up 31.1% on a year-over-year basis. 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. Sell-side analysts anticipate that Palo Alto Networks, Inc. will post 2.03 earnings per share for the current fiscal year.

Insider Buying and Selling

In other Palo Alto Networks news, CAO Josh D. Paul sold 900 shares of the firm'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 transaction of $310,500.00. Following the sale, the chief accounting officer owned 79,644 shares in the company, valued at approximately $27,477,180. This trade represents a 1.12% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, EVP Dipak Golechha sold 5,000 shares of Palo Alto Networks stock in a transaction that occurred on Tuesday, June 23rd. The shares were sold at an average price of $289.56, for a total transaction of $1,447,800.00. Following the transaction, the executive vice president directly owned 145,250 shares in the company, valued at $42,058,590. This represents a 3.33% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold a total of 101,239 shares of company stock worth $27,174,360 in the last ninety days. Corporate insiders own 1.40% of the company's stock.

Institutional Inflows and Outflows

Several hedge funds have recently bought and sold shares of PANW. Allied Private Wealth LLC purchased a new position in shares of Palo Alto Networks in the second quarter valued at about $38,000. Darwin Wealth Management LLC purchased a new stake in shares of Palo Alto Networks during the second quarter worth about $25,000. Knuff & Co LLC purchased a new stake in shares of Palo Alto Networks during the fourth quarter worth about $26,000. Steph & Co. raised its stake in Palo Alto Networks by 88.2% during the 4th quarter. Steph & Co. now owns 143 shares of the network technology company's stock valued at $26,000 after purchasing an additional 67 shares during the period. Finally, Sittner & Nelson LLC raised its stake in Palo Alto Networks by 73.8% during the 4th quarter. Sittner & Nelson LLC now owns 146 shares of the network technology company's stock valued at $27,000 after purchasing an additional 62 shares during the period. Institutional investors own 79.82% of the company's stock.

Palo Alto Networks Company Profile

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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