Palo Alto Networks (NASDAQ:PANW) Stock Price Up 1.6% - Still a Buy?

Key Points

• Palo Alto Networks shares rose 1.6% to $164.11 on Wednesday with trading volume down about 29% versus the average, and analysts hold a consensus "Moderate Buy" with an average price target of $209.95 (2 Strong Buy, 35 Buy, 9 Hold).
• PANW beat the quarter with EPS of $1.03 versus $0.94 expected and revenue of $2.59B (vs. $2.58B), with revenue up 14.9% year-over-year and a net margin of 12.96%.
• Insiders have sold roughly 30,356 shares (~$4.98M) in the last 90 days while owning 1.4% of the company, institutional investors own 79.82%, and the stock trades at a relatively high valuation (market cap $133.9B; P/E ~90.7).

Palo Alto Networks, Inc. (NASDAQ:PANW - Get Free Report) traded up 1.6% during trading on Wednesday . The stock traded as high as $165.23 and last traded at $164.11. 7,262,280 shares traded hands during mid-day trading, a decline of 29% from the average session volume of 10,292,151 shares. The stock had previously closed at $161.59.

Analyst Ratings Changes

PANW has been the subject of several research reports. Citizens Jmp reaffirmed a "market outperform" rating and set a $250.00 price target on shares of Palo Alto Networks in a research note on Wednesday, February 18th. Rosenblatt Securities reissued a "buy" rating and issued a $225.00 price objective on shares of Palo Alto Networks in a research report on Wednesday, February 18th. UBS Group set a $183.00 target price on shares of Palo Alto Networks in a research report on Thursday, February 19th. Jefferies Financial Group reiterated a "buy" rating on shares of Palo Alto Networks in a research note on Wednesday, February 4th. Finally, Weiss Ratings reissued a "hold (c)" rating on shares of Palo Alto Networks in a research report on Monday, December 29th. Two analysts have rated the stock with a Strong Buy rating, thirty-five have issued a Buy rating and nine have given a Hold rating to the stock. Based on data from MarketBeat.com, Palo Alto Networks currently has a consensus rating of "Moderate Buy" and an average price target of $209.95.

Palo Alto Networks Stock Performance

The firm has a fifty day moving average price of $160.26 and a 200 day moving average price of $183.93. The company has a market cap of $133.91 billion, a price-to-earnings ratio of 90.67, a P/E/G ratio of 5.86 and a beta of 0.77.

Palo Alto Networks (NASDAQ:PANW - Get Free Report) last issued its earnings results on Wednesday, February 18th. The network technology company reported $1.03 earnings per share for the quarter, topping analysts' consensus estimates of $0.94 by $0.09. Palo Alto Networks had a net margin of 12.96% and a return on equity of 17.60%. The business had revenue of $2.59 billion for the quarter, compared to the consensus estimate of $2.58 billion. During the same period in the previous year, the company earned $0.81 earnings per share. The firm's revenue for the quarter was up 14.9% on a year-over-year basis. On average, analysts expect that Palo Alto Networks, Inc. will post 1.76 EPS for the current fiscal year.

Insider Activity at Palo Alto Networks

In related news, CAO Josh D. Paul sold 1,100 shares of Palo Alto Networks stock in a transaction dated Wednesday, April 1st. The stock was sold at an average price of $161.40, for a total transaction of $177,540.00. Following the completion of the transaction, the chief accounting officer owned 83,136 shares in the company, valued at approximately $13,418,150.40. This trade represents a 1.31% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, EVP Dipak Golechha sold 5,000 shares of Palo Alto Networks stock in a transaction dated Wednesday, April 1st. The stock was sold at an average price of $160.42, for a total value of $802,100.00. Following the transaction, the executive vice president owned 150,250 shares of the company's stock, valued at $24,103,105. The trade was a 3.22% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders sold 30,356 shares of company stock worth $4,981,575 over the last ninety days. Company insiders own 1.40% of the company's stock.

Institutional Investors Weigh In On Palo Alto Networks

A number of institutional investors have recently made changes to their positions in PANW. Weatherly Asset Management L. P. lifted its holdings in Palo Alto Networks by 311.8% during the 1st quarter. Weatherly Asset Management L. P. now owns 138,990 shares of the network technology company's stock worth $22,283,000 after purchasing an additional 105,240 shares during the last quarter. KRS Capital Management LLC grew its holdings in Palo Alto Networks by 33.3% in the 1st quarter. KRS Capital Management LLC now owns 22,609 shares of the network technology company's stock valued at $3,625,000 after buying an additional 5,644 shares in the last quarter. Stance Capital LLC increased its position in Palo Alto Networks by 7.2% during the 4th quarter. Stance Capital LLC now owns 7,340 shares of the network technology company's stock worth $1,352,000 after buying an additional 494 shares during the period. Cornerstone Planning LLC bought a new position in Palo Alto Networks during the 4th quarter worth $2,766,000. Finally, Rockefeller Capital Management L.P. lifted its holdings in shares of Palo Alto Networks by 3.9% during the fourth quarter. Rockefeller Capital Management L.P. now owns 982,633 shares of the network technology company's stock worth $181,001,000 after buying an additional 37,083 shares in the last quarter. Institutional investors own 79.82% of the company's stock.

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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