Palo Alto Networks (NASDAQ:PANW) Trading 1.8% Higher - Here's Why

Key Points

• Palo Alto Networks shares rose 1.8% on Monday, trading as high as $285.12 after closing at $279.62 the previous session. Trading volume was below average, with about 7.25 million shares changing hands.
• Analysts remain broadly positive after the latest results, with multiple firms raising price targets to as high as $375. The consensus rating is currently Moderate Buy, with an average price target of $306.59.
• The company recently reported strong quarterly earnings, posting $0.85 EPS versus $0.79 expected and revenue of $3 billion versus $2.94 billion estimated. Revenue jumped 31.1% year over year, and Palo Alto Networks also raised its full-year guidance.

Shares of Palo Alto Networks, Inc. (NASDAQ:PANW - Get Free Report) were up 1.8% on Monday . The company traded as high as $285.12 and last traded at $284.54. Approximately 7,249,080 shares traded hands during trading, a decline of 24% from the average daily volume of 9,556,793 shares. The stock had previously closed at $279.62.

Analyst Ratings Changes

Several analysts have commented on PANW shares. Stephens increased their price target on shares of Palo Alto Networks from $180.00 to $300.00 and gave the company an "equal weight" rating in a research report on Wednesday, June 3rd. Evercore reissued an "outperform" rating and set a $375.00 price target on shares of Palo Alto Networks in a research report on Wednesday, June 3rd. Piper Sandler reissued an "overweight" rating and set a $345.00 price target (up from $265.00) on shares of Palo Alto Networks in a research report on Wednesday, June 3rd. Cantor Fitzgerald set a $340.00 price target on shares of Palo Alto Networks and gave the company an "overweight" rating in a research report on Wednesday, June 3rd. Finally, Guggenheim lowered shares of Palo Alto Networks from a "neutral" rating to a "reduce" rating in a research report on Wednesday, May 27th. Two equities research analysts have rated the stock with a Strong Buy rating, thirty-seven have given a Buy rating, eight have given a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat, the company has an average rating of "Moderate Buy" and an average price target of $306.59.

Palo Alto Networks Stock Up 1.8%

The stock has a market capitalization of $231.90 billion, a PE ratio of 233.23, a price-to-earnings-growth ratio of 10.38 and a beta of 0.94. 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 company's 50-day moving average is $216.44 and its 200 day moving average is $189.26.

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

Insider Transactions at Palo Alto Networks

In related news, EVP Lee Klarich sold 62,904 shares of the stock in a transaction that occurred on Friday, May 22nd. The shares were sold at an average price of $258.65, for a total value of $16,270,119.60. Following the completion of the transaction, the executive vice president directly owned 235,983 shares of the company's stock, valued at $61,037,002.95. This trade represents a 21.05% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, EVP Dipak Golechha sold 5,000 shares of the 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 completion of the transaction, the executive vice president directly owned 150,250 shares of the company's stock, valued at $24,103,105. The trade was a 3.22% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 81,044 shares of company stock worth $20,424,722 over the last ninety days. 1.40% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Palo Alto Networks

A number of institutional investors have recently bought and sold shares of the business. Aviva PLC grew its stake in shares of Palo Alto Networks by 5.4% during the fourth quarter. Aviva PLC now owns 568,804 shares of the network technology company's stock worth $104,774,000 after purchasing an additional 29,230 shares in the last quarter. Westfield Capital Management Co. LP acquired a new position in shares of Palo Alto Networks during the third quarter worth $75,412,000. Peapack Gladstone Financial Corp grew its stake in shares of Palo Alto Networks by 8.8% during the fourth quarter. Peapack Gladstone Financial Corp now owns 48,458 shares of the network technology company's stock worth $8,926,000 after purchasing an additional 3,926 shares in the last quarter. American Century Companies Inc. lifted its holdings in Palo Alto Networks by 134.1% during the 3rd quarter. American Century Companies Inc. now owns 672,129 shares of the network technology company's stock worth $136,859,000 after buying an additional 384,985 shares during the last quarter. Finally, US Bancorp DE lifted its holdings in Palo Alto Networks by 0.6% during the 3rd quarter. US Bancorp DE now owns 1,364,442 shares of the network technology company's stock worth $277,828,000 after buying an additional 8,344 shares during the last quarter. 79.82% of the stock is owned by hedge funds and other 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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