Palo Alto Networks (NASDAQ:PANW) Stock Price Up 1.2% - Here's Why

Key Points

• Palo Alto Networks' stock rose by 1.2% to $189.83, although trading volume was significantly lower than average, indicating potential investor hesitance.
• A number of research firms issued positive ratings, with target prices ranging from $215 to $235, consensus indicating a "Moderate Buy" with an average target of $211.52.
• The company reported quarterly earnings of $0.95 EPS, surpassing estimates, while revenue showed an impressive year-over-year growth of 15.8% to $2.54 billion.

Palo Alto Networks, Inc. (NASDAQ:PANW - Get Free Report)'s share price rose 1.2% during mid-day trading on Thursday . The stock traded as high as $189.79 and last traded at $189.83. Approximately 1,297,348 shares traded hands during trading, a decline of 80% from the average daily volume of 6,451,011 shares. The stock had previously closed at $187.61.

Analyst Ratings Changes

PANW has been the subject of several research reports. UBS Group set a $185.00 price target on Palo Alto Networks and gave the company a "neutral" rating in a report on Tuesday, August 12th. Scotiabank lifted their price target on Palo Alto Networks from $225.00 to $228.00 and gave the company a "sector outperform" rating in a report on Tuesday, August 19th. Bank of America upgraded Palo Alto Networks from a "neutral" rating to a "buy" rating and set a $215.00 price target for the company in a research note on Tuesday, August 19th. Truist Financial set a $220.00 price target on Palo Alto Networks and gave the stock a "buy" rating in a research note on Tuesday, August 19th. Finally, Northland Securities decreased their price target on Palo Alto Networks from $210.00 to $177.00 and set a "market perform" rating for the company in a research note on Wednesday, May 21st. Twenty-eight equities research analysts have rated the stock with a Buy rating, eleven have given a Hold rating and two have given a Sell rating to the stock. According to data from MarketBeat.com, Palo Alto Networks presently has an average rating of "Moderate Buy" and a consensus price target of $211.52.

Palo Alto Networks Price Performance

The stock has a market capitalization of $127.04 billion, a P/E ratio of 118.70, a PEG ratio of 4.55 and a beta of 0.94. The business's 50 day simple moving average is $189.39 and its 200-day simple moving average is $186.10.

Palo Alto Networks (NASDAQ:PANW - Get Free Report) last posted its earnings results on Monday, August 18th. The network technology company reported $0.95 earnings per share for the quarter, topping the consensus estimate of $0.89 by $0.06. The company had revenue of $2.54 billion for the quarter, compared to analyst estimates of $2.50 billion. Palo Alto Networks had a net margin of 12.30% and a return on equity of 17.66%. The business's revenue for the quarter was up 15.8% compared to the same quarter last year. During the same period last 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. Research analysts anticipate that Palo Alto Networks, Inc. will post 1.76 earnings per share for the current fiscal year.

Insider Buying and Selling at Palo Alto Networks

In related news, EVP Lee Klarich sold 120,774 shares of the stock in a transaction on Wednesday, June 4th. The shares were sold at an average price of $195.14, for a total transaction of $23,567,838.36. Following the completion of the transaction, the executive vice president owned 264,246 shares in the company, valued at approximately $51,564,964.44. This represents a 31.37% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, CAO Josh D. Paul sold 800 shares of the company's stock in a transaction on Friday, June 20th. The stock was sold at an average price of $201.05, for a total transaction of $160,840.00. Following the sale, the chief accounting officer directly owned 42,033 shares in the company, valued at $8,450,734.65. This trade represents a 1.87% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last ninety days, insiders have sold 669,422 shares of company stock worth $126,452,337. Company insiders own 2.50% of the company's stock.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently bought and sold shares of the stock. Connor Clark & Lunn Investment Management Ltd. bought a new position in Palo Alto Networks in the first quarter valued at about $261,000. Rehmann Capital Advisory Group grew its position in Palo Alto Networks by 106.4% in the fourth quarter. Rehmann Capital Advisory Group now owns 2,378 shares of the network technology company's stock valued at $433,000 after acquiring an additional 1,226 shares during the last quarter. GAMMA Investing LLC grew its position in Palo Alto Networks by 10.8% in the first quarter. GAMMA Investing LLC now owns 14,125 shares of the network technology company's stock valued at $2,410,000 after acquiring an additional 1,374 shares during the last quarter. Diligent Investors LLC grew its position in Palo Alto Networks by 100.0% in the fourth quarter. Diligent Investors LLC now owns 3,430 shares of the network technology company's stock valued at $624,000 after acquiring an additional 1,715 shares during the last quarter. Finally, Nisa Investment Advisors LLC grew its position in Palo Alto Networks by 8.0% in the first quarter. Nisa Investment Advisors LLC now owns 137,663 shares of the network technology company's stock valued at $23,491,000 after acquiring an additional 10,180 shares during the last quarter. Institutional investors and hedge funds own 79.82% of the company's stock.

Palo Alto Networks Company Profile

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.