Palo Alto Networks (NASDAQ:PANW) Trading 3.1% Higher - Still a Buy?

Key Points

• Palo Alto Networks (PANW) stock increased by 3.1% to trade at $173.39 during mid-day trading, despite a significant drop in share volume compared to its average.
• Analysts show a generally positive outlook on PANW, with 27 buy ratings and a consensus price target of $217.52, while a few have issued sell and neutral ratings.
• The company reported earnings of $0.80 EPS, slightly exceeding estimates, with revenues increasing 15.3% year-over-year to $2.29 billion.

Palo Alto Networks, Inc. (NASDAQ:PANW - Get Free Report) was up 3.1% during mid-day trading on Tuesday . The stock traded as high as $173.61 and last traded at $173.39. Approximately 3,278,818 shares were traded during trading, a decline of 46% from the average daily volume of 6,077,886 shares. The stock had previously closed at $168.17.

Wall Street Analysts Forecast Growth

Several equities research analysts have recently weighed in on PANW shares. Roth Capital began coverage on Palo Alto Networks in a research report on Thursday, May 15th. They issued a "neutral" rating and a $210.00 price objective for the company. DA Davidson cut their price target on shares of Palo Alto Networks from $225.00 to $215.00 and set a "buy" rating for the company in a report on Thursday, July 31st. Sanford C. Bernstein set a $225.00 price objective on shares of Palo Alto Networks and gave the stock an "outperform" rating in a research note on Wednesday, May 21st. UBS Group set a $185.00 target price on shares of Palo Alto Networks and gave the company a "neutral" rating in a research note on Tuesday. Finally, Guggenheim reissued a "sell" rating and issued a $130.00 target price on shares of Palo Alto Networks in a report on Wednesday, May 21st. Two research analysts have rated the stock with a sell rating, thirteen have issued a hold rating and twenty-seven have assigned a buy rating to the stock. According to MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and a consensus target price of $217.52.

Palo Alto Networks Trading Up 4.0%

The company's 50-day moving average is $193.70 and its two-hundred day moving average is $186.78. The firm has a market cap of $116.64 billion, a P/E ratio of 99.92, a PEG ratio of 3.96 and a beta of 0.94.

Palo Alto Networks (NASDAQ:PANW - Get Free Report) last announced its earnings results on Tuesday, May 20th. The network technology company reported $0.80 EPS for the quarter, beating the consensus estimate of $0.77 by $0.03. Palo Alto Networks had a net margin of 13.95% and a return on equity of 19.48%. The company had revenue of $2.29 billion during the quarter, compared to the consensus estimate of $2.28 billion. During the same quarter in the prior year, the company posted $0.66 earnings per share. The firm's revenue for the quarter was up 15.3% on a year-over-year basis. Research analysts anticipate 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 600 shares of the company's stock in a transaction that occurred on Tuesday, July 1st. The shares were sold at an average price of $204.00, for a total transaction of $122,400.00. Following the sale, the chief accounting officer owned 41,433 shares of the company's stock, valued at approximately $8,452,332. This represents a 1.43% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Also, Director Aparna Bawa sold 526 shares of the firm's stock in a transaction on Friday, May 30th. The shares were sold at an average price of $190.00, for a total transaction of $99,940.00. Following the completion of the transaction, the director directly owned 8,632 shares of the company's stock, valued at approximately $1,640,080. The trade was a 5.74% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold a total of 669,248 shares of company stock worth $126,423,337 over the last 90 days. Corporate insiders own 2.50% of the company's stock.

Institutional Investors Weigh In On Palo Alto Networks

Several large investors have recently added to or reduced their stakes in the business. Transce3nd LLC purchased a new position in shares of Palo Alto Networks in the 4th quarter worth about $25,000. Strategic Investment Solutions Inc. IL grew its position in Palo Alto Networks by 64.0% during the fourth quarter. Strategic Investment Solutions Inc. IL now owns 141 shares of the network technology company's stock valued at $26,000 after acquiring an additional 55 shares during the last quarter. Whipplewood Advisors LLC raised its stake in shares of Palo Alto Networks by 6,400.0% during the second quarter. Whipplewood Advisors LLC now owns 130 shares of the network technology company's stock worth $27,000 after acquiring an additional 128 shares in the last quarter. Anchor Investment Management LLC lifted its holdings in shares of Palo Alto Networks by 100.0% in the 4th quarter. Anchor Investment Management LLC now owns 156 shares of the network technology company's stock worth $28,000 after acquiring an additional 78 shares during the last quarter. Finally, Briaud Financial Planning Inc bought a new position in shares of Palo Alto Networks during the 2nd quarter valued at $28,000. Institutional investors 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.

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