Stocks

Palo Alto Networks, Inc. (NASDAQ:PANW) Receives $201.40 Consensus Target Price from Brokerages

Published December 29, 2024

Shares of Palo Alto Networks, Inc. (NASDAQ:PANW) have been given a consensus rating of “Moderate Buy” by forty-three research firms that are currently covering the company, according to MarketBeat Ratings. Out of these analysts, two have assigned sell ratings, nine have given hold ratings, thirty-one have issued buy ratings, and one analyst has provided a strong buy rating for the stock. The average one-year target price among brokers who have given ratings in the past year is $201.40.

Recent commentary from analysts regarding PANW shares has been optimistic. For example, JPMorgan Chase & Co. raised its price target on Palo Alto Networks shares from $193.50 to $224.50, assigning the company an “overweight” rating in a research report released on November 18th. Meanwhile, TD Cowen increased their target price from $200.00 to $210.00, labeling the stock as a buy in a report dated November 21st. Additionally, Westpark Capital reiterated a “hold” rating for Palo Alto Networks shares on the same day. Wells Fargo & Company also raised their price target from $208.00 to $225.00, maintaining an “overweight” rating. Lastly, BMO Capital Markets increased their price objective on the stock from $195.00 to $212.50 while giving it an “outperform” rating in a research report published the same day.

Palo Alto Networks Stock Performance

On Thursday, NASDAQ:PANW opened trading at $186.18. The company has seen a 52-week low of $130.04 and a high of $207.24. The fifty-day moving average stands at $192.01, and the 200-day moving average is at $177.08. Currently, Palo Alto Networks has a market cap of $122.17 billion, a price-to-earnings ratio of 24.24, a PEG ratio of 5.75, and a beta of 1.12.

Palo Alto Networks reported its quarterly earnings on November 20th. The company announced earnings per share (EPS) of $0.78, exceeding the analysts' consensus estimate of $0.74 by $0.04. The firm recorded a net margin of 32.99% and a return on equity of 23.36%. The revenue for the quarter reached $2.14 billion, surpassing the expected $2.12 billion. Compared to the previous year, revenue increased by 13.9%. Analysts forecast that Palo Alto Networks will achieve an EPS of 3.49 for the current fiscal year.

Insider Activity

On November 25th, EVP Nir Zuk sold 336,000 shares of the company’s stock at an average price of $193.70, totaling approximately $65.08 million. Following this transaction, he owns 3,643,516 shares, worth about $705.73 million, reflecting an 8.44% reduction in his ownership stake. This transaction was disclosed to the Securities and Exchange Commission (SEC). In a separate transaction, CEO Nikesh Arora sold 163,172 shares on October 10th at an average price of $184.00 for a total of approximately $30.02 million. After this trade, he holds 1,237,430 shares valued at $227.68 million, marking an 11.65% drop in his stake. Over the last quarter, insiders sold a total of 571,172 shares worth around $107.07 million, accounting for 2.50% of the company's stock held by insiders.

Hedge Funds Weigh In On Palo Alto Networks

Several institutional investors have recently adjusted their positions in Palo Alto Networks. Tradewinds LLC increased its holdings by 1.2% in the third quarter, owning 2,315 shares valued at approximately $791,000 after adding 28 shares. Similarly, Kathmere Capital Management LLC increased its stake by 3.4% in the second quarter, with a total of 920 shares valued at $312,000 after acquiring 30 additional shares. FLC Capital Advisors raised its holdings by 0.7% in the third quarter, owning 4,035 shares valued at $1.38 million after purchasing 30 more shares. Cromwell Holdings LLC grew its stake by 3.0% in the same timeframe, owning 1,044 shares worth $357,000 after acquiring another 30. Finally, Rosenberg Matthew Hamilton increased its holdings by 9.4%, now owning 348 shares valued at approximately $119,000 after purchasing an additional 30 shares. Hedge funds and other institutional investors now own around 79.82% of the company's shares.

Palo Alto Networks Company Profile

Palo Alto Networks, Inc. is a global provider of cybersecurity solutions. The company offers firewall appliances and software, as well as Panorama, a security management solution for comprehensive network security control, which is available both as a virtual and physical appliance. It also provides subscription services related to threat prevention, malware protection, URL filtering, device protection, DNS security, and threat intelligence, among others.

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