Somerset Group LLC Increases Stake in Palo Alto Networks, Inc.

Somerset Group LLC has significantly expanded its investment in Palo Alto Networks, Inc. (NASDAQ:PANW) by 93.2% during the last quarter of the year, as reported in a recent filing with the Securities and Exchange Commission. Following this acquisition, the institutional investor owns a total of 17,216 shares of the technology firm's stock, after purchasing an additional 8,307 shares in the fourth quarter.

Palo Alto Networks comprises around 2.9% of Somerset Group LLC's overall investment portfolio, making it the group's 12th largest investment. As per the latest filing, the value of Somerset Group’s holdings in Palo Alto Networks is approximately $3,133,000.

Other Institutional Investments

Several other hedge funds and institutional investors have also adjusted their positions in Palo Alto Networks recently. For instance, SJS Investment Consulting Inc. increased its stake in the company by 97.2% in the fourth quarter, bringing its total to 140 shares valued at $25,000 after buying 69 more shares.

Valued Wealth Advisors LLC made a significant move as well, lifting its investment in Palo Alto Networks by 246.3% during the same period. They now possess 142 shares of the company's stock, which is valued at $26,000 following an addition of 101 shares. Abound Wealth Management also saw a notable increase of 97.3% in its holdings, acquiring 146 shares worth around $27,000.

Additionally, Atlantic Edge Private Wealth Management LLC grew its stake by an impressive 265.0% during the fourth quarter, owning the same 146 shares that are valued at $27,000 after purchasing an additional 106 shares. Finally, Capital Advisors Ltd. raised its position in Palo Alto Networks by 102.6%, owning 156 shares worth $28,000 after acquiring an extra 79 shares.

In total, institutional investors hold 79.82% of the company's shares.

Palo Alto Networks Stock Performance

As for the stock's market performance, Palo Alto Networks opened at a price of $182.32 on the latest trading day. The stock's 50-day moving average stands at $186.59, while the 200-day moving average is $185.00. The company's market capitalization is approximately $120.71 billion, with a price-to-earnings (P/E) ratio of 102.72 and a PEG ratio of 5.64. Over the past year, Palo Alto Networks has registered a low of $132.50 and a peak of $208.39.

Palo Alto Networks recently released its quarterly earnings results, reporting earnings per share (EPS) of $0.81, surpassing analysts’ expectations of $0.75. Their total revenue during the quarter was $2.26 billion, exceeding estimates of $2.24 billion. Looking ahead, financial analysts anticipate that the company will report an EPS of 1.76 for the current fiscal year.

Analyst Opinions

Several analysts have shared their perspectives on Palo Alto Networks stock. Loop Capital has adjusted its price target down from $385.00 to $180.00 while maintaining a "hold" rating. Conversely, Rosenblatt Securities increased its target from $212.50 to $235.00 and affirmed a "buy" rating.

Other firms have expressed varied outlooks as well: BTIG Research downgraded Palo Alto Networks from "buy" to "neutral," while Cantor Fitzgerald reaffirmed an "overweight" rating with a $223.00 price target. Deutsche Bank also maintained a "hold" rating, setting a $190.00 price objective. A mix of ratings includes three sell, eleven hold, and twenty-eight buy recommendations, resulting in an overall average rating of "Moderate Buy" with a target price of around $205.06.

Insider Transactions

Regarding insider trading, EVP Lee Klarich recently sold 99,707 shares of Palo Alto Networks stock on February 3rd, at an average price of $182.45, totaling approximately $18.19 million. After this sale, Klarich holds 358,197 shares valued at about $65.35 million, marking a decrease of 21.77% in their holdings. CEO Nikesh Arora also sold 176,242 shares on January 6th for approximately $31.73 million, reducing his position by 13.96%. Over the last three months, insiders have sold a combined total of 1,122,864 shares worth $204.32 million, with company insiders owning about 2.50% of the stock currently.

Company Overview

Palo Alto Networks, Inc. is a leading provider of cybersecurity solutions globally. The company specializes in firewall appliances and software, alongside Panorama, a security management tool for monitoring network security. The company's offerings also encompass service subscriptions covering threat prevention, malware protection, and various security measures for devices and internet-based services.

investment, stocks, growth