Palo Alto Networks Shares Rise 1.1% – Is It a Good Time to Buy?

Palo Alto Networks, Inc. (NASDAQ:PANW) saw its stock increase by 1.1% on Friday, reaching a peak of $183.53 before settling at $182.70. During mid-day trading, around 755,407 shares exchanged hands, which is a significant drop of 71% compared to the usual trading volume of 2,577,069 shares. The previous day's closing price was $180.74.

Analysts Review Palo Alto Networks

Palo Alto Networks has received attention from a variety of research analysts. In a report dated November 21, Cantor Fitzgerald reaffirmed an "overweight" rating with a price target of $222.50. Jefferies Financial Group increased their price target significantly from $225.00 to $240.00 while maintaining a "buy" rating on December 19. BMO Capital Markets also raised its target from $195.00 to $212.50 and gave an “outperform” rating in a report on November 21. Conversely, Scotiabank lowered its price target from $400.00 to $200.00, while maintaining a "sector outperform" rating. Susquehanna increased its price objective from $210.00 to $217.50 with a "positive" rating. The stock has mixed ratings with two analysts suggesting selling, ten suggesting holding, thirty-one advising to buy, and one issuing a strong buy. According to MarketBeat.com data, the current consensus rating for Palo Alto Networks is "Moderate Buy" with an average target price of $201.46.

Recent Stock Performance

Palo Alto Networks has a market cap of $120.25 billion and a price-to-earnings (P/E) ratio of 23.86. The company’s 50-day moving average is $191.81, while the 200-day moving average stands at $177.89. The tech company reported its earnings on November 20, with a quarterly earnings per share of $0.78, exceeding analysts’ estimate of $0.74 by $0.04. The company achieved a return on equity of 23.36% and a net margin of 32.99%. Revenues reached $2.14 billion, slightly above the consensus estimate of $2.12 billion, marking a 13.9% increase from the same quarter last year. Analysts predict that Palo Alto Networks will report an EPS of 3.49 for the current year.

Insider Trading Activity

In other news, executive vice president Nir Zuk sold 336,000 shares on November 25 for about $65.08 million at an average price of $193.70. Following this sale, Zuk retains direct ownership of 3,643,516 shares valued at approximately $705.73 million. This transaction indicated an 8.44% reduction in their stock ownership. CEO Nikesh Arora sold 163,172 shares at an average price of $184.00 on October 10 for a total of about $30.02 million, reducing his ownership by 11.65%. Corporate insiders now own about 2.50% of the company’s stock.

Institutional Holdings

Several institutional investors made adjustments to their holdings in Palo Alto Networks recently. Mainstream Capital Management acquired a new position valued at around $1.16 million during the third quarter. Alpha Cubed Investments boosted its stake by 16.4%, now owning 231,566 shares worth roughly $79.15 million. Harvest Portfolios Group secured a new position valued at about $24.41 million. Handelsbanken Fonder raised its stake by 3.8%, and Jennison Associates increased their holdings by 50.1% in the last quarter. Currently, institutional investors and hedge funds hold approximately 79.82% of the company's stock.

About Palo Alto Networks

Palo Alto Networks, Inc. specializes in cybersecurity solutions globally. The company provides firewall appliances and software, alongside Panorama, a security management tool for controlling network security both virtually and physically. They also offer various subscription services encompassing threat prevention, malware protection, security for mobile devices, DNS security, Internet of Things security, and more.

Conclusion

As the market continues to fluctuate, potential investors may want to consider Palo Alto Networks for their portfolio, especially in light of the positive analyst ratings and solid performance to date.

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