Palo Alto Networks (NASDAQ:PANW) Trading 4.4% Higher - Still a Buy?

Key Points

• Palo Alto Networks shares jumped 4.4% to $162.53 intraday (volume down ~18% vs. average); the stock sits above its 50‑day SMA ($160.61) but below its 200‑day SMA ($184.49).
• Analysts remain broadly positive with a MarketBeat consensus of “Moderate Buy” and an average price target of $209.95, though several firms recently trimmed targets into the ~$175–$200 range while keeping Buy/Outperform ratings.
• Fundamentals: the company posted an EPS beat ($1.03 vs. $0.94) and revenue of $2.59B (+14.9% YoY), but valuation is rich (market cap ~$132.6B; PE ~89.8) and insiders sold ~30,356 shares over the past 90 days.

Palo Alto Networks, Inc. (NASDAQ:PANW - Get Free Report) shares traded up 4.4% during mid-day trading on Monday . The stock traded as high as $162.80 and last traded at $162.5330. 8,511,961 shares changed hands during trading, a decline of 18% from the average session volume of 10,377,243 shares. The stock had previously closed at $155.73.

Wall Street Analysts Forecast Growth

Several equities analysts recently issued reports on the stock. JPMorgan Chase & Co. reduced their price objective on shares of Palo Alto Networks from $225.00 to $200.00 and set an "overweight" rating on the stock in a research note on Thursday, February 19th. Daiwa Securities Group cut their price target on shares of Palo Alto Networks from $212.00 to $175.00 and set an "outperform" rating on the stock in a research note on Tuesday, February 24th. DA Davidson set a $190.00 price target on shares of Palo Alto Networks and gave the stock a "buy" rating in a research note on Wednesday, February 18th. Jefferies Financial Group reaffirmed a "buy" rating on shares of Palo Alto Networks in a research note on Wednesday, February 4th. Finally, Susquehanna cut their price target 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. Two equities research analysts have rated the stock with a Strong Buy rating, thirty-five have given a Buy rating and nine have assigned a Hold rating to the company's stock. According to data from MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and an average target price of $209.95.

Palo Alto Networks Stock Up 4.4%

The company has a market cap of $132.63 billion, a PE ratio of 89.80, a P/E/G ratio of 5.62 and a beta of 0.77. The stock's 50 day simple moving average is $160.61 and its two-hundred day simple moving average is $184.49.

Palo Alto Networks (NASDAQ:PANW - Get Free Report) last released its quarterly earnings data on Wednesday, February 18th. The network technology company reported $1.03 earnings per share (EPS) for the quarter, topping 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 company had revenue of $2.59 billion during the quarter, compared to analyst estimates of $2.58 billion. During the same quarter in the prior year, the business earned $0.81 earnings per share. The business's quarterly revenue was up 14.9% compared to the same quarter last year. Analysts forecast that Palo Alto Networks, Inc. will post 1.76 EPS for the current year.

Insider Buying and Selling

In other news, Director John P. Key sold 1,572 shares of the stock in a transaction on Wednesday, April 8th. The shares were sold at an average price of $173.32, for a total value of $272,459.04. Following the completion of the sale, the director owned 20,000 shares of the company's stock, valued at $3,466,400. This represents a 7.29% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, CAO Josh D. Paul sold 1,100 shares of the stock in a transaction on 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 sale, the chief accounting officer directly owned 83,136 shares of the company's stock, valued at $13,418,150.40. The trade was a 1.31% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last ninety days, insiders have sold 30,356 shares of company stock valued at $4,981,575. 1.40% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Palo Alto Networks

Several large investors have recently made changes to their positions in PANW. Darwin Wealth Management LLC acquired a new stake in Palo Alto Networks during the 2nd quarter valued at $25,000. Steph & Co. grew its holdings in Palo Alto Networks by 88.2% during the 4th quarter. Steph & Co. now owns 143 shares of the network technology company's stock valued at $26,000 after purchasing an additional 67 shares in the last quarter. Knuff & Co LLC acquired a new stake in Palo Alto Networks during the 4th quarter valued at $26,000. Sittner & Nelson LLC grew its holdings in Palo Alto Networks by 73.8% during the 4th quarter. Sittner & Nelson LLC now owns 146 shares of the network technology company's stock valued at $27,000 after purchasing an additional 62 shares in the last quarter. Finally, Luken Investment Analytics LLC grew its holdings in Palo Alto Networks by 196.2% during the 4th quarter. Luken Investment Analytics LLC now owns 154 shares of the network technology company's stock valued at $28,000 after purchasing an additional 102 shares in the last quarter. Institutional investors and hedge funds 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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