Palo Alto Networks (NASDAQ:PANW) Trading Up 1.6% - Here's What Happened

Key Points

• Palo Alto Networks (NASDAQ:PANW) shares rose by 1.6% to last trade at $187.18, with trading volume significantly declining by 74% from its daily average.
• Analysts have a consensus rating of Moderate Buy for Palo Alto Networks, with 28 analysts rating it a buy and an average price target of $211.52.
• The company reported a quarterly earnings per share (EPS) of $0.95, exceeding expectations and showing a 15.8% year-over-year revenue increase of $2.54 billion.

Palo Alto Networks, Inc. (NASDAQ:PANW - Get Free Report) shares were up 1.6% during trading on Wednesday . The company traded as high as $187.27 and last traded at $187.18. Approximately 1,648,961 shares traded hands during trading, a decline of 74% from the average daily volume of 6,456,924 shares. The stock had previously closed at $184.23.

Analyst Upgrades and Downgrades

A number of research analysts have recently commented on PANW shares. TD Securities reaffirmed a "buy" rating and set a $230.00 target price on shares of Palo Alto Networks in a research note on Wednesday, May 21st. Rosenblatt Securities lowered their price target on Palo Alto Networks from $235.00 to $215.00 and set a "buy" rating for the company in a report on Thursday, August 14th. BMO Capital Markets boosted their price target on Palo Alto Networks from $217.00 to $225.00 and gave the company an "outperform" rating in a report on Tuesday, August 19th. Westpark Capital reiterated a "hold" rating on shares of Palo Alto Networks in a report on Tuesday, August 19th. Finally, Morgan Stanley boosted their price target on Palo Alto Networks from $205.00 to $210.00 and gave the company an "overweight" rating in a report on Wednesday, August 20th. Twenty-eight equities research analysts have rated the stock with a Buy rating, eleven have issued a Hold rating and two have assigned a Sell rating to the company's stock. According to data from MarketBeat.com, Palo Alto Networks currently has a consensus rating of "Moderate Buy" and an average price target of $211.52.

Palo Alto Networks Price Performance

The business has a fifty day simple moving average of $189.98 and a two-hundred day simple moving average of $186.24. The company has a market cap of $124.54 billion, a PE ratio of 116.30, a price-to-earnings-growth ratio of 4.50 and a beta of 0.94.

Palo Alto Networks (NASDAQ:PANW - Get Free Report) last issued its quarterly earnings results on Monday, August 18th. The network technology company reported $0.95 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.89 by $0.06. The business had revenue of $2.54 billion for the quarter, compared to the consensus estimate of $2.50 billion. Palo Alto Networks had a return on equity of 17.66% and a net margin of 12.30%.The business's quarterly revenue was up 15.8% on a year-over-year basis. During the same period in the prior year, the firm posted $0.75 earnings per share. Palo Alto Networks has set its FY 2026 guidance at 3.750-3.850 EPS. Q1 2026 guidance at 0.880-0.900 EPS. On average, equities research analysts predict that Palo Alto Networks, Inc. will post 1.76 EPS for the current year.

Insiders Place Their Bets

In related news, EVP Dipak Golechha sold 5,000 shares of the company's stock in a transaction on Monday, June 23rd. The stock was sold at an average price of $201.85, for a total value of $1,009,250.00. Following the transaction, the executive vice president directly owned 101,135 shares of the company's stock, valued at $20,414,099.75. This represents a 4.71% decrease in their position. 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 800 shares of the company's stock in a transaction on Friday, June 20th. The shares were sold at an average price of $201.05, for a total value of $160,840.00. Following the completion of the transaction, the chief accounting officer directly owned 42,033 shares in the company, valued at approximately $8,450,734.65. The trade was a 1.87% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last ninety days, insiders sold 669,948 shares of company stock valued at $126,552,277. Company insiders own 2.50% of the company's stock.

Hedge Funds Weigh In On Palo Alto Networks

Several hedge funds have recently made changes to their positions in the company. Darwin Wealth Management LLC acquired a new stake in Palo Alto Networks during the 2nd quarter worth about $25,000. Whipplewood Advisors LLC grew 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 purchasing an additional 128 shares during the period. Briaud Financial Planning Inc acquired a new stake in Palo Alto Networks during the 2nd quarter worth about $28,000. Capital A Wealth Management LLC acquired a new stake in Palo Alto Networks during the 4th quarter worth about $29,000. Finally, Howard Hughes Medical Institute acquired a new stake in Palo Alto Networks during the 2nd quarter worth about $29,000. 79.82% of the stock is owned by institutional investors and hedge funds.

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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