Palo Alto Networks (NASDAQ:PANW) Stock Price Up 3.1% - Should You Buy?

Key Points

• Palo Alto Networks shares were up 3.1% mid‑day to $178.54 on Friday with trading volume about 41% below average; the company has a market cap of ~$145.7B and a high valuation (PE ~98.6) with the 50‑day at $161.41 and 200‑day at $182.53.
• Analysts maintain a consensus of “Moderate Buy” with an average price target of $210.07, and recent firm targets cluster roughly between $183 and $210 with most ratings being Buy or Strong Buy.
• Palo Alto beat quarterly estimates (EPS $1.03 vs. $0.94; revenue $2.59B vs. $2.58B; revenue +14.9% YoY) and the CEO purchased 68,085 shares (~$10M), though insiders have also sold shares recently.

Palo Alto Networks, Inc. (NASDAQ:PANW - Get Free Report) shares rose 3.1% during mid-day trading on Friday . The stock traded as high as $179.10 and last traded at $178.54. Approximately 5,868,045 shares were traded during mid-day trading, a decline of 41% from the average daily volume of 9,930,861 shares. The stock had previously closed at $173.21.

Wall Street Analysts Forecast Growth

PANW has been the topic of several recent research reports. Citigroup reaffirmed a "buy" rating and issued a $210.00 price objective (down from $235.00) on shares of Palo Alto Networks in a research note on Thursday, February 19th. Weiss Ratings reaffirmed a "hold (c)" rating on shares of Palo Alto Networks in a research note on Monday, December 29th. Susquehanna lowered their price objective on shares of Palo Alto Networks from $230.00 to $200.00 and set a "positive" rating on the stock in a research note on Wednesday, February 18th. Wells Fargo & Company began coverage on shares of Palo Alto Networks in a research note on Tuesday, March 3rd. They issued an "overweight" rating and a $200.00 price objective on the stock. Finally, UBS Group set a $183.00 target price on shares of Palo Alto Networks in a research report on Thursday, February 19th. Three research analysts have rated the stock with a Strong Buy rating, thirty-five have issued a Buy rating and nine have issued a Hold rating to the company's stock. According to data from MarketBeat.com, the company presently has an average rating of "Moderate Buy" and an average price target of $210.07.

Palo Alto Networks Stock Up 3.1%

The firm's 50-day moving average price is $161.41 and its two-hundred day moving average price is $182.53. The firm has a market capitalization of $145.69 billion, a PE ratio of 98.64, a P/E/G ratio of 6.53 and a beta of 0.77.

Palo Alto Networks (NASDAQ:PANW - Get Free Report) last released its earnings results on Wednesday, February 18th. The network technology company reported $1.03 earnings per share for the quarter, topping the consensus estimate of $0.94 by $0.09. The business had revenue of $2.59 billion for the quarter, compared to the consensus estimate of $2.58 billion. Palo Alto Networks had a net margin of 12.96% and a return on equity of 17.60%. The firm's quarterly revenue was up 14.9% compared to the same quarter last year. During the same period last year, the firm posted $0.81 earnings per share. Equities research analysts forecast that Palo Alto Networks, Inc. will post 2.14 EPS for the current year.

Insider Buying and Selling at Palo Alto Networks

In related news, EVP Dipak Golechha sold 5,000 shares of the business's stock in a transaction that occurred on Wednesday, April 1st. The shares were sold at an average price of $160.42, for a total transaction of $802,100.00. Following the transaction, the executive vice president directly owned 150,250 shares of the company's stock, valued at approximately $24,103,105. The trade was a 3.22% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through the SEC website. Also, CEO Nikesh Arora acquired 68,085 shares of the stock in a transaction that occurred on Friday, March 27th. The shares were bought at an average cost of $146.87 per share, for a total transaction of $9,999,643.95. Following the completion of the transaction, the chief executive officer directly owned 343,394 shares of the company's stock, valued at $50,434,276.78. This represents a 24.73% increase in their position. Additional details regarding this purchase are available in the official SEC disclosure. Insiders sold a total of 30,356 shares of company stock valued at $4,981,575 in the last 90 days. Corporate insiders own 1.40% of the company's stock.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Lynch Asset Management Inc. grew its position in Palo Alto Networks by 29.2% during the first quarter. Lynch Asset Management Inc. now owns 35,000 shares of the network technology company's stock valued at $5,611,000 after purchasing an additional 7,900 shares in the last quarter. Squire Investment Management Company LLC purchased a new position in Palo Alto Networks during the first quarter valued at approximately $491,000. Semus Wealth Partners LLC grew its position in Palo Alto Networks by 14.2% during the first quarter. Semus Wealth Partners LLC now owns 3,142 shares of the network technology company's stock valued at $504,000 after purchasing an additional 390 shares in the last quarter. Fulton Bank N.A. grew its position in Palo Alto Networks by 29.3% during the first quarter. Fulton Bank N.A. now owns 9,718 shares of the network technology company's stock valued at $1,558,000 after purchasing an additional 2,200 shares in the last quarter. Finally, Vertrix Wealth Management LLC purchased a new position in Palo Alto Networks during the first quarter valued at approximately $1,204,000. 79.82% of the stock is owned by hedge funds and other institutional investors.

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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