Palo Alto Networks Upgraded to Buy by StockNews.com

Palo Alto Networks (NASDAQ:PANW) has received an upgrade from research analysts at StockNews.com, changing its rating from "hold" to "buy" as of a report released on Monday.

A variety of other research institutions have also weighed in on Palo Alto Networks. On November 21st, Bank of America raised its price target for the company’s shares from $200.00 to $215.00, maintaining a "neutral" rating. Meanwhile, the Royal Bank of Canada reaffirmed an "outperform" rating with a target price of $225.00. Jefferies Financial Group also increased its price target from $200.00 to $225.00 and assigned a "buy" rating on November 19th. Similarly, Oppenheimer reiterated its "outperform" rating and set a target price of $225.00 on the same day as the Royal Bank of Canada. Additionally, Barclays raised its price target from $205.00 to $212.50, issuing an "overweight" rating on November 11th. Overall, there are two analysts who have rated the stock as a sell, ten who have given it a hold rating, thirty-two who rated it as a buy, and one analyst who has given it a strong buy. According to MarketBeat data, PANW currently has a consensus rating of "Moderate Buy" with an average price target of $201.03.

Palo Alto Networks Stock Performance

As of Monday, NASDAQ PANW opened at $201.24. Over the past year, the stock has reached a low of $130.04 and a high of $207.24. It currently has a market cap of $66.03 billion with a P/E ratio of 26.20 and a PEG ratio of 5.75. The company's beta is 1.12, and its 50-day and 200-day moving averages stand at $191.65 and $175.11, respectively.

Recent Earnings Report

Palo Alto Networks revealed its quarterly earnings on November 20th. The cybersecurity company reported earnings of $0.78 per share, surpassing analysts' expectations of $0.74 by four cents. The company generated $2.14 billion in revenue for the quarter, slightly above the anticipated $2.12 billion. Moreover, it achieved a return on equity of 23.36% and had a net margin of 32.99%. Compared to the same quarter last year, revenue rose by 13.9%, while the prior year reported earnings of $0.32 per share. Analysts forecast that Palo Alto Networks will achieve earnings of $3.49 per share for the fiscal year.

Insider Activity

In related developments, CEO Nikesh Arora sold 163,172 shares on October 10th at an average price of $184.00, generating a total of approximately $30 million. Following this sale, he retained 1,237,430 shares valued at about $227 million, marking an 11.65% reduction in his ownership. This transaction was detailed in a filing with the SEC. Additionally, EVP Nir Zuk sold 336,000 shares on November 25th at an average price of $193.70, amounting to roughly $65 million. Even after this sale, he continues to own 3,643,516 shares worth approximately $706 million, which is an 8.44% decrease in ownership. In total, insiders sold 571,172 shares of the company in the last three months, valued at over $107 million, while 2.50% of the stock remains under insider ownership.

Institutional Investor Movements

Several institutional investors have changed their stakes in Palo Alto Networks recently. Capital Advisors Ltd. LLC boosted its holding by 113.9% in the third quarter, now owning 77 shares worth approximately $26,000 after acquiring an additional 41 shares. Sound Income Strategies LLC increased its stake by 352.6%, now possessing 86 shares valued at $29,000. Strategic Investment Solutions Inc. IL enhanced its position by 177.4%, bringing its total to 86 shares worth around $29,000. Itau Unibanco Holding S.A. bought a new stake estimated at $29,000 during the same period. True Wealth Design LLC raised its holdings by 2,933.3%, now owning 91 shares valued at roughly $31,000. Currently, approximately 79.82% of the stock is owned by institutional investors and hedge funds.

About Palo Alto Networks

Palo Alto Networks, Inc specializes in providing cybersecurity solutions globally. The company offers firewall appliances and software, along with Panorama, a security management solution for comprehensive network security control. Additionally, it provides subscription services that include threat prevention, malware protection, URL filtering, laptop and mobile device security, DNS security, Internet of Things security, SaaS security API and inline, threat intelligence, and data loss prevention.

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