Palo Alto Networks (NASDAQ:PANW) Rating Adjusted to 'Hold' by StockNews.com

Palo Alto Networks (NASDAQ:PANW) has had its rating downgraded from a buy to a hold as per the latest report by StockNews.com released on December 25th, 2024.

Several other analysts have also provided recent insights on the performance of Palo Alto Networks. For instance, Cantor Fitzgerald reaffirmed an ‘overweight’ rating with a price target of $222.50 in their report dated November 21st. Similarly, Morgan Stanley raised their price target for the company from $195.00 to $210.50, maintaining an ‘overweight’ rating as of October 11th. Furthermore, Rosenblatt Securities upgraded their recommendation from ‘neutral’ to ‘buy’ and increased their price target from $195.00 to $215.00 on November 21st. On November 18th, JPMorgan Chase & Co. elevated their target price to $224.50 while sustaining an ‘overweight’ rating. In addition, Susquehanna increased their target price from $210.00 to $217.50, giving the stock a ‘positive’ rating on November 21st. Currently, the ratings for Palo Alto Networks include two sell ratings, ten hold ratings, thirty-one buy ratings, and one strong buy rating. According to MarketBeat data, the consensus rating stands at ‘Moderate Buy’ with an average price target of $201.40.

Palo Alto Networks Stock Performance

As of December 25th, shares of PANW opened at $189.51. The company has a 50-day moving average of $191.92 and a 200-day moving average of $176.28. With a market cap of $124.36 billion, it has a PE ratio of 24.68 and a P/E/G ratio of 5.75, alongside a beta of 1.12. The stock has varied between a 52-week low of $130.04 and a high of $207.24.

Palo Alto Networks recently released its quarterly earnings results on November 20th. The firm reported earnings per share (EPS) of $0.78, surpassing the expected EPS of $0.74 by $0.04. Its revenue for the quarter reached $2.14 billion, ahead of the anticipated $2.12 billion. The company achieved a return on equity of 23.36% with a net margin of 32.99%. Year over year, revenue increased by 13.9%, with EPS from the previous year recorded at $0.32. Analysts estimate that the firm will report an EPS of 3.49 for the current fiscal year.

Insider Selling Activity

In recent insider transactions, EVP Nir Zuk sold 72,000 shares on October 1st at an average price of $166.25, totaling approximately $11.97 million. Post-sale, Zuk owns about 2.23 million shares. CEO Nikesh Arora also sold 163,172 shares on October 10th for around $30.02 million, reducing his ownership to approximately 1.24 million shares. In the last quarter, insiders sold a total of 571,172 shares worth about $107.07 million, with corporate insiders owning 2.50% of the stock.

Institutional Investor Activity

Recent trading activity among hedge funds revealed that Capital Advisors Ltd. LLC raised its holdings in Palo Alto Networks by 113.9% in the third quarter, now controlling 77 shares after an additional purchase. Itau Unibanco Holding S.A. acquired a new stake during the same period valued at around $29,000. Other firms, like Sound Income Strategies LLC and Strategic Investment Solutions Inc., have significantly increased their ownership as well. As of recent data, institutional investors own approximately 79.82% of Palo Alto Networks shares.

About Palo Alto Networks

Palo Alto Networks, Inc. specializes in providing cybersecurity solutions across the globe. Its offerings include firewall appliances and software, as well as Panorama for security management, which can be deployed in virtual or physical form. The company also offers a range of subscription services aimed at threat prevention, mobile device protection, DNS security, and more.

Conclusion

The adjustments in ratings and performance of Palo Alto Networks indicate a mixed outlook from various analysts while demonstrating considerable interest from institutional investors.

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