Primecap Management Co. CA Expands Investment in Palo Alto Networks, Inc.

Primecap Management Co. CA has increased its stake in Palo Alto Networks, Inc. (NASDAQ:PANW) by a remarkable 95.3% during the fourth quarter, as revealed in its latest Form 13F submitted to the Securities and Exchange Commission. After acquiring an additional 488,250 shares throughout the quarter, the institutional investor now holds 1,000,640 shares of the cybersecurity firm's stock. This holding represents roughly 0.15% of Palo Alto Networks and is valued at approximately $182,076,000 at the conclusion of the quarter.

Several other institutional investors and hedge funds have also adjusted their holdings in Palo Alto Networks recently. For instance, Itau Unibanco Holding S.A. established a new position in the third quarter, valued at about $29,000. True Wealth Design LLC made significant changes by increasing its position in Palo Alto Networks by an impressive 2,933.3% during the same period, owning 91 shares worth around $31,000 after acquiring an additional 88 shares. MidAtlantic Capital Management Inc. and Darwin Wealth Management LLC also bought new positions in the third quarter worth approximately $32,000 and $39,000, respectively. Additionally, SJS Investment Consulting Inc. increased its position by 97.2% in the fourth quarter, owning 140 shares valued at $25,000 after purchasing 69 shares more. Notably, around 79.82% of the stock is held by hedge funds and other institutional investors.

Insider Transactions at Palo Alto Networks

In recent insider activity concerning Palo Alto Networks, CEO Nikesh Arora sold 176,242 shares on January 6th for an average price of $180.04, totaling $31,730,609.68. After this sale, Arora now possesses 1,086,404 shares of the company, equating to a value of $195,596,176.16, which represents a 13.96% reduction in his stake. This transaction was documented in a filing with the SEC. Moreover, Chief Accounting Officer Josh D. Paul sold 700 shares on February 3rd for an average price of $181.22, amounting to $126,854. After this sale, he directly owns 47,976 shares valued at $8,694,210.72, marking a 1.44% decrease in his position. In total, over the last 90 days, company insiders have sold 1,122,864 shares worth $204,315,811, while insiders own 2.50% of the company's stock.

Analysts' Perspectives on Palo Alto Networks

Various research firms have shared their analyses regarding Palo Alto Networks. Oppenheimer reaffirmed an "outperform" rating with a price target of $225.00 on November 21st. Bank of America also raised its price target from $200.00 to $215.00, assigning a "neutral" rating on the same day. Susquehanna increased its price target from $217.50 to $230.00 while giving the company a "positive" rating. Conversely, Loop Capital revised its price target downward from $385.00 to $180.00, labeling it as a "hold." Robert W. Baird adjusted its price target up from $212.50 to $217.50, maintaining an "outperform" rating. In summary, three analysts provided sell ratings, eleven recommended holding, twenty-eight suggested buying, and only one assigned a strong buy rating. According to MarketBeat data, Palo Alto Networks has an average rating of "Moderate Buy" alongside a consensus price target of $205.06.

Palo Alto Networks Stock Overview

The stock of Palo Alto Networks (NASDAQ:PANW) opened at $185.00 on a recent Tuesday. The company boasts a market capitalization of $122.49 billion, with a price-to-earnings (P/E) ratio of 104.23 and a P/E growth (P/E/G) ratio of 5.64, alongside a beta of 1.04. Over the past year, the stock reached a low of $132.50 and a high of $208.39. Currently, it has a 50-day moving average price of $185.74 and a 200-day moving average price of $184.97.

Palo Alto Networks recently announced its earnings results on February 13th, reporting earnings per share (EPS) of $0.81 for the quarter, which surpassed analysts' expectations of $0.75 by $0.06. The company achieved a return on equity of 21.93% and had a net margin of 14.64%. During the quarter, total revenue reached $2.26 billion, slightly exceeding the consensus estimate of $2.24 billion. Expectations for Palo Alto Networks suggest an EPS of 1.76 for the current fiscal year.

Company Background

Palo Alto Networks, Inc. specializes in providing cybersecurity solutions globally. Its product range includes firewall appliances and software as well as Panorama, a security management tool for comprehensive control over network security, available as either a virtual or physical appliance. The company also offers subscription services across various areas including threat prevention, malware protection, URL filtering, device protection, and data loss prevention.

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