Palo Alto Networks (NASDAQ:PANW) Trading Down 4.1% – Here’s What Happened

Shares of Palo Alto Networks, Inc. (NASDAQ:PANW) were down 4.1% during trading on Thursday . The stock traded as low as $171.25 and last traded at $176.20. Approximately 12,886,175 shares were traded during mid-day trading, an increase of 101% from the average daily volume of 6,424,737 shares. The stock had previously closed at $183.74.

Analyst Upgrades and Downgrades

Several research analysts have commented on the company. Bank of America boosted their target price on Palo Alto Networks from $215.00 to $240.00 and gave the stock a “buy” rating in a research note on Monday, October 20th. Weiss Ratings restated a “hold (c)” rating on shares of Palo Alto Networks in a research report on Monday, December 29th. Citigroup reiterated a “buy” rating on shares of Palo Alto Networks in a report on Monday, January 12th. DA Davidson set a $240.00 price objective on Palo Alto Networks in a report on Friday, December 19th. Finally, Wedbush reaffirmed an “outperform” rating and issued a $225.00 target price on shares of Palo Alto Networks in a report on Thursday, November 20th. Thirty-one investment analysts have rated the stock with a Buy rating, seven have issued a Hold rating and two have given a Sell rating to the stock. Based on data from MarketBeat.com, Palo Alto Networks currently has an average rating of “Moderate Buy” and an average target price of $229.09.

Palo Alto Networks Stock Performance

The business’s fifty day moving average price is $187.52 and its two-hundred day moving average price is $194.80. The firm has a market capitalization of $122.81 billion, a P/E ratio of 111.52, a PEG ratio of 4.37 and a beta of 0.76.

Palo Alto Networks (NASDAQ:PANW) last released its earnings results on Thursday, November 20th. The network technology company reported $0.93 earnings per share for the quarter, topping the consensus estimate of $0.89 by $0.04. The company had revenue of $2.47 billion for the quarter, compared to the consensus estimate of $2.46 billion. Palo Alto Networks had a net margin of 11.69% and a return on equity of 17.05%. Palo Alto Networks’s revenue was up 15.7% compared to the same quarter last year. During the same quarter in the previous year, the firm earned $1.56 EPS. Sell-side analysts predict that Palo Alto Networks, Inc. will post 1.76 earnings per share for the current year.

Insider Activity at Palo Alto Networks

In related news, Director James J. Goetz sold 12,500 shares of the stock in a transaction that occurred on Monday, December 8th. The stock was sold at an average price of $195.33, for a total value of $2,441,625.00. Following the completion of the sale, the director owned 75,184 shares of the company’s stock, valued at approximately $14,685,690.72. This trade represents a 14.26% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, EVP Dipak Golechha sold 5,000 shares of Palo Alto Networks stock in a transaction that occurred on Tuesday, December 23rd. The stock was sold at an average price of $188.18, for a total value of $940,900.00. Following the transaction, the executive vice president owned 155,119 shares in the company, valued at approximately $29,190,293.42. The trade was a 3.12% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 382,016 shares of company stock worth $76,386,460 in the last ninety days. 1.40% of the stock is owned by company insiders.

Hedge Funds Weigh In On Palo Alto Networks

A number of hedge funds have recently modified their holdings of the business. Eagle Wealth Advisors LLC acquired a new stake in shares of Palo Alto Networks in the fourth quarter valued at $361,000. RMR Wealth Builders lifted its stake in Palo Alto Networks by 20.2% during the fourth quarter. RMR Wealth Builders now owns 14,829 shares of the network technology company’s stock worth $2,731,000 after purchasing an additional 2,495 shares during the last quarter. Anchyra Partners LLC purchased a new position in Palo Alto Networks in the fourth quarter valued at approximately $1,896,000. S.A. Mason LLC lifted its position in shares of Palo Alto Networks by 3.3% during the 4th quarter. S.A. Mason LLC now owns 7,444 shares of the network technology company’s stock worth $1,371,000 after buying an additional 239 shares during the last quarter. Finally, Kestra Private Wealth Services LLC grew its position in shares of Palo Alto Networks by 10.6% in the 4th quarter. Kestra Private Wealth Services LLC now owns 89,778 shares of the network technology company’s stock valued at $16,537,000 after buying an additional 8,631 shares during the last quarter. 79.82% of the stock is currently owned by hedge funds and other institutional investors.

About Palo Alto Networks

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.