Palo Alto Networks (NASDAQ:PANW) Stock Price Down 5.1% After Analyst Downgrade

Key Points

• Palo Alto Networks shares fell by 5.1% to $173.63 after an analyst downgrade, reducing the target price from $225.00 to $215.00 while maintaining a buy rating.
• Multiple analysts have recently revised their price targets, with Northland Securities setting a new target of $177.00 and HSBC upgrading to a hold rating with a $156.00 target.
• Recent insider trading includes sales by EVP Dipak Golechha and Director Aparna Bawa, with insiders selling a total of 569,248 shares valued at over $111 million in the last quarter.

Shares of Palo Alto Networks, Inc. (NASDAQ:PANW - Get Free Report) dropped 5.1% during trading on Thursday after DA Davidson lowered their price target on the stock from $225.00 to $215.00. DA Davidson currently has a buy rating on the stock. Palo Alto Networks traded as low as $172.93 and last traded at $173.63. Approximately 9,474,397 shares changed hands during trading, an increase of 67% from the average daily volume of 5,672,867 shares. The stock had previously closed at $183.03.

A number of other equities analysts have also recently issued reports on the stock. Rosenblatt Securities restated a "buy" rating and issued a $235.00 price objective on shares of Palo Alto Networks in a research report on Thursday. Sanford C. Bernstein set a $225.00 price objective on shares of Palo Alto Networks and gave the company an "outperform" rating in a research report on Wednesday, May 21st. Jefferies Financial Group set a $235.00 price objective on shares of Palo Alto Networks in a research report on Tuesday. TD Securities restated a "buy" rating and issued a $230.00 price objective on shares of Palo Alto Networks in a research report on Wednesday, May 21st. Finally, Morgan Stanley decreased their price objective on shares of Palo Alto Networks from $230.00 to $205.00 and set an "overweight" rating on the stock in a research report on Wednesday, April 16th. Two equities research analysts have rated the stock with a sell rating, fourteen have assigned a hold rating and twenty-six have issued a buy rating to the company. According to MarketBeat, the company presently has an average rating of "Moderate Buy" and a consensus target price of $209.61.

Insider Transactions at Palo Alto Networks

In other Palo Alto Networks news, EVP Dipak Golechha sold 5,000 shares of the stock in a transaction dated Monday, June 23rd. The shares were sold at an average price of $201.85, for a total transaction of $1,009,250.00. Following the transaction, the executive vice president directly owned 101,135 shares in the company, valued at $20,414,099.75. This represents a 4.71% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, EVP Nir Zuk sold 100,000 shares of the firm's stock in a transaction dated Tuesday, July 1st. The shares were sold at an average price of $198.66, for a total transaction of $19,866,000.00. Following the completion of the sale, the executive vice president owned 3,243,516 shares in the company, valued at $644,356,888.56. This represents a 2.99% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last quarter, insiders sold 569,248 shares of company stock valued at $111,279,829. Company insiders own 2.50% of the company's stock.

Hedge Funds Weigh In On Palo Alto Networks

Several hedge funds and other institutional investors have recently modified their holdings of the stock. Whipplewood Advisors LLC raised its position in Palo Alto Networks by 6,400.0% during the 2nd quarter. Whipplewood Advisors LLC now owns 130 shares of the network technology company's stock worth $27,000 after buying an additional 128 shares during the last quarter. Transce3nd LLC purchased a new position in Palo Alto Networks during the 4th quarter worth approximately $25,000. Briaud Financial Planning Inc purchased a new position in Palo Alto Networks during the 2nd quarter worth approximately $28,000. Strategic Investment Solutions Inc. IL raised its position in Palo Alto Networks by 64.0% during the 4th quarter. Strategic Investment Solutions Inc. IL now owns 141 shares of the network technology company's stock worth $26,000 after buying an additional 55 shares during the last quarter. Finally, Anchor Investment Management LLC raised its position in Palo Alto Networks by 100.0% during the 4th quarter. Anchor Investment Management LLC now owns 156 shares of the network technology company's stock worth $28,000 after buying an additional 78 shares during the last quarter. 79.82% of the stock is owned by hedge funds and other institutional investors.

Palo Alto Networks Trading Up 0.9%

The company has a market capitalization of $116.78 billion, a PE ratio of 100.38, a price-to-earnings-growth ratio of 5.11 and a beta of 0.97. The business's 50-day simple moving average is $196.32 and its 200-day simple moving average is $187.19.

Palo Alto Networks (NASDAQ:PANW - Get Free Report) last issued its quarterly earnings data on Tuesday, May 20th. The network technology company reported $0.80 EPS for the quarter, topping analysts' consensus estimates of $0.77 by $0.03. The business had revenue of $2.29 billion for the quarter, compared to analysts' expectations of $2.28 billion. Palo Alto Networks had a net margin of 13.95% and a return on equity of 19.48%. The business's revenue was up 15.3% on a year-over-year basis. During the same quarter last year, the company earned $0.66 EPS. Sell-side analysts forecast that Palo Alto Networks, Inc. will post 1.76 EPS for the current fiscal year.

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.