Palo Alto Networks (NASDAQ:PANW) Trading 2.4% Higher - Time to Buy?

Key Points

• Shares rose 2.4% to $182.90 on Monday with volume down ~20% vs. the average; the stock sits near its 200‑day moving average ($181.84) and trades at a high valuation (market cap ~$149.3B, PE ~101).
• Analysts hold a consensus of "Moderate Buy" with an average target of $210.07, though several firms recently trimmed price targets while most still rate the stock as Buy/Outperform.
• Palo Alto reported a quarter that beat EPS estimates ($1.03 vs. $0.94) with revenue up 14.9% to $2.59B, and CEO Nikesh Arora bought 68,085 shares (~$10M), boosting his stake by ~24.7%.

Shares of Palo Alto Networks, Inc. (NASDAQ:PANW - Get Free Report) traded up 2.4% on Monday . The stock traded as high as $184.02 and last traded at $182.90. 7,881,401 shares changed hands during trading, a decline of 20% from the average session volume of 9,905,195 shares. The stock had previously closed at $178.54.

Wall Street Analyst Weigh In

Several research analysts have recently weighed in on the stock. BMO Capital Markets cut their price objective on shares of Palo Alto Networks from $230.00 to $200.00 and set an "outperform" rating on the stock in a report on Wednesday, February 18th. Berenberg Bank set a $215.00 price objective on shares of Palo Alto Networks and gave the stock a "buy" rating in a report on Tuesday, April 21st. Needham & Company LLC cut their price objective on shares of Palo Alto Networks from $230.00 to $200.00 and set a "buy" rating on the stock in a report on Wednesday, February 18th. Rosenblatt Securities reiterated a "buy" rating and set a $225.00 price objective on shares of Palo Alto Networks in a report on Wednesday, February 18th. Finally, Guggenheim reiterated a "neutral" rating on shares of Palo Alto Networks in a report on Wednesday, February 18th. Three research 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 company's stock. According to MarketBeat, the company currently has a consensus rating of "Moderate Buy" and an average target price of $210.07.

Palo Alto Networks Stock Up 2.4%

The company's fifty day moving average is $161.64 and its 200 day moving average is $181.84. The stock has a market cap of $149.25 billion, a PE ratio of 101.05, a price-to-earnings-growth ratio of 6.44 and a beta of 0.77.

Palo Alto Networks (NASDAQ:PANW - Get Free Report) last posted its quarterly earnings results on Wednesday, February 18th. The network technology company reported $1.03 EPS for the quarter, beating the consensus estimate 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 firm had revenue of $2.59 billion for the quarter, compared to analyst estimates of $2.58 billion. During the same quarter last year, the firm posted $0.81 earnings per share. Palo Alto Networks's revenue for the quarter was up 14.9% compared to the same quarter last year. Equities analysts expect that Palo Alto Networks, Inc. will post 2.14 EPS for the current year.

Insider Transactions at Palo Alto Networks

In other Palo Alto Networks news, CEO Nikesh Arora purchased 68,085 shares of the business's stock in a transaction that occurred on Friday, March 27th. The shares were purchased at an average price of $146.87 per share, for a total transaction of $9,999,643.95. Following the completion of the acquisition, the chief executive officer owned 343,394 shares of the company's stock, valued at approximately $50,434,276.78. This represents a 24.73% increase in their position. The purchase was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, EVP Dipak Golechha sold 5,000 shares of the firm'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 completion of the transaction, the executive vice president owned 150,250 shares in the company, 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 have sold a total of 30,356 shares of company stock valued at $4,981,575 in the last three months. 1.40% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Hedge funds have recently bought and sold shares of the business. PFG Investments LLC grew its position in Palo Alto Networks by 9.7% in the first quarter. PFG Investments LLC now owns 19,884 shares of the network technology company's stock valued at $3,188,000 after acquiring an additional 1,756 shares in the last quarter. Baer Investment Advisory LLC acquired a new stake in Palo Alto Networks in the first quarter valued at approximately $904,000. World Investment Advisors grew its position in Palo Alto Networks by 1.9% in the first quarter. World Investment Advisors now owns 27,461 shares of the network technology company's stock valued at $4,403,000 after acquiring an additional 502 shares in the last quarter. Counterweight Ventures LLC grew its position in Palo Alto Networks by 14.1% in the first quarter. Counterweight Ventures LLC now owns 19,316 shares of the network technology company's stock valued at $3,097,000 after acquiring an additional 2,391 shares in the last quarter. Finally, Canal Capital Management LLC grew its position in Palo Alto Networks by 1.6% in the first quarter. Canal Capital Management LLC now owns 43,810 shares of the network technology company's stock valued at $7,024,000 after acquiring an additional 689 shares in the last quarter. Hedge funds and other 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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