Palo Alto Networks (NASDAQ:PANW) Trading 4.4% Higher – Should You Buy?

Shares of Palo Alto Networks, Inc. (NASDAQ:PANW) traded up 4.4% during trading on Wednesday . The stock traded as high as $196.19 and last traded at $193.9820. 7,602,734 shares changed hands during trading, an increase of 12% from the average session volume of 6,762,833 shares. The stock had previously closed at $185.86.

Wall Street Analysts Forecast Growth

Several brokerages recently weighed in on PANW. Piper Sandler reissued an “overweight” rating and issued a $265.00 price objective (up from $230.00) on shares of Palo Alto Networks in a report on Monday. Needham & Company LLC reissued a “buy” rating and set a $230.00 price target on shares of Palo Alto Networks in a research report on Thursday, November 20th. UBS Group restated a “neutral” rating and set a $220.00 price objective (down from $230.00) on shares of Palo Alto Networks in a research note on Thursday, November 20th. Rosenblatt Securities boosted their target price on shares of Palo Alto Networks from $225.00 to $250.00 and gave the company a “buy” rating in a research note on Tuesday, November 18th. Finally, HSBC downgraded shares of Palo Alto Networks from a “hold” rating to a “reduce” rating and set a $157.00 price target on the stock. in a research report on Thursday, November 20th. Thirty-one investment analysts have rated the stock with a Buy rating, eight have given a Hold rating and two have issued a Sell rating to the company. According to MarketBeat.com, Palo Alto Networks presently has an average rating of “Moderate Buy” and a consensus price target of $227.99.

Palo Alto Networks Price Performance

The firm’s fifty day moving average price is $193.84 and its 200-day moving average price is $196.15. The company has a market cap of $131.75 billion, a price-to-earnings ratio of 119.63, a P/E/G ratio of 4.55 and a beta of 0.76.

Palo Alto Networks (NASDAQ:PANW) last issued its quarterly earnings data on Thursday, November 20th. The network technology company reported $0.93 earnings per share for the quarter, beating the consensus estimate of $0.89 by $0.04. Palo Alto Networks had a net margin of 11.69% and a return on equity of 17.05%. The firm had revenue of $2.47 billion for the quarter, compared to the consensus estimate of $2.46 billion. During the same period last year, the firm posted $1.56 EPS. Palo Alto Networks’s quarterly revenue was up 15.7% compared to the same quarter last year. As a group, equities analysts forecast that Palo Alto Networks, Inc. will post 1.76 earnings per share for the current fiscal year.

Insiders Place Their Bets

In related news, EVP Lee Klarich sold 120,774 shares of the firm’s stock in a transaction that occurred on Monday, November 3rd. The stock was sold at an average price of $217.94, for a total value of $26,321,485.56. Following the sale, the executive vice president directly owned 356,409 shares in the company, valued at $77,675,777.46. This trade represents a 25.31% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, CAO Josh D. Paul sold 800 shares of Palo Alto Networks stock in a transaction on Friday, January 2nd. The shares were sold at an average price of $184.81, for a total value of $147,848.00. Following the sale, the chief accounting officer directly owned 46,005 shares in the company, valued at $8,502,184.05. The trade was a 1.71% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last 90 days, insiders sold 261,248 shares of company stock valued at $53,316,149. 1.40% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Palo Alto Networks

Large investors have recently bought and sold shares of the stock. Westview Management dba Westview Investment Advisors acquired a new stake in shares of Palo Alto Networks in the 4th quarter worth approximately $3,046,000. Tactive Advisors LLC raised its holdings in Palo Alto Networks by 8.8% during the fourth quarter. Tactive Advisors LLC now owns 2,620 shares of the network technology company’s stock worth $483,000 after purchasing an additional 213 shares in the last quarter. Ulland Investment Advisors LLC lifted its position in Palo Alto Networks by 44.2% in the fourth quarter. Ulland Investment Advisors LLC now owns 978 shares of the network technology company’s stock worth $180,000 after purchasing an additional 300 shares during the period. True Wealth Design LLC boosted its stake in Palo Alto Networks by 49.8% during the 4th quarter. True Wealth Design LLC now owns 848 shares of the network technology company’s stock valued at $156,000 after purchasing an additional 282 shares in the last quarter. Finally, Gradient Investments LLC boosted its stake in Palo Alto Networks by 5.6% during the 4th quarter. Gradient Investments LLC now owns 172,928 shares of the network technology company’s stock valued at $31,853,000 after purchasing an additional 9,182 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.