Palo Alto Networks (NASDAQ:PANW) Shares Down 1.2% After Analyst Downgrade

Shares of Palo Alto Networks, Inc. (NASDAQ:PANW) were down 1.2% on Friday after KeyCorp lowered their price target on the stock from $240.00 to $205.00. KeyCorp currently has an overweight rating on the stock. Palo Alto Networks traded as low as $167.13 and last traded at $167.69. Approximately 4,768,742 shares were traded during mid-day trading, a decline of 19% from the average daily volume of 5,880,201 shares. The stock had previously closed at $169.76.

A number of other brokerages have also recently commented on PANW. Morgan Stanley dropped their price objective on shares of Palo Alto Networks from $230.00 to $205.00 and set an “overweight” rating for the company in a research note on Wednesday. Evercore ISI decreased their price objective on Palo Alto Networks from $455.00 to $230.00 and set an “outperform” rating on the stock in a research report on Tuesday, December 31st. Truist Financial lowered their price objective on Palo Alto Networks from $213.00 to $205.00 and set a “buy” rating for the company in a research note on Monday, March 31st. Loop Capital cut their target price on Palo Alto Networks from $385.00 to $180.00 and set a “hold” rating on the stock in a research report on Tuesday, January 14th. Finally, Cantor Fitzgerald restated an “overweight” rating and issued a $223.00 price target on shares of Palo Alto Networks in a research report on Wednesday, February 12th. Two research analysts have rated the stock with a sell rating, thirteen have assigned a hold rating, twenty-eight have assigned a buy rating and two have assigned a strong buy rating to the stock. According to data from MarketBeat, the stock presently has an average rating of “Moderate Buy” and a consensus target price of $203.06.

Insider Activity at Palo Alto Networks

In other news, EVP Lee Klarich sold 120,774 shares of the company’s stock in a transaction dated Monday, April 7th. The shares were sold at an average price of $151.13, for a total transaction of $18,252,574.62. Following the transaction, the executive vice president now owns 321,774 shares in the company, valued at $48,629,704.62. This represents a 27.29 % decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available through this hyperlink. Also, CEO Nikesh Arora sold 490,723 shares of Palo Alto Networks stock in a transaction that occurred on Monday, February 3rd. The stock was sold at an average price of $182.45, for a total transaction of $89,532,411.35. Following the completion of the sale, the chief executive officer now owns 1,086,404 shares of the company’s stock, valued at $198,214,409.80. This trade represents a 31.11 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold 1,039,318 shares of company stock valued at $181,925,602 in the last ninety days. Corporate insiders own 2.50% of the company’s stock.

Institutional Inflows and Outflows

A number of hedge funds have recently modified their holdings of PANW. Strategic Investment Solutions Inc. IL raised its holdings in Palo Alto Networks by 64.0% in the fourth quarter. Strategic Investment Solutions Inc. IL now owns 141 shares of the network technology company’s stock worth $26,000 after buying an additional 55 shares during the last quarter. JDM Financial Group LLC increased its position in shares of Palo Alto Networks by 22.4% during the fourth quarter. JDM Financial Group LLC now owns 322 shares of the network technology company’s stock valued at $59,000 after acquiring an additional 59 shares in the last quarter. Adero Partners LLC raised its holdings in Palo Alto Networks by 4.3% in the 1st quarter. Adero Partners LLC now owns 1,556 shares of the network technology company’s stock worth $266,000 after acquiring an additional 64 shares during the last quarter. Snider Financial Group lifted its position in Palo Alto Networks by 0.4% in the 1st quarter. Snider Financial Group now owns 17,729 shares of the network technology company’s stock valued at $3,025,000 after acquiring an additional 65 shares in the last quarter. Finally, Grimes & Company Inc. boosted its stake in Palo Alto Networks by 5.3% during the 1st quarter. Grimes & Company Inc. now owns 1,310 shares of the network technology company’s stock valued at $224,000 after purchasing an additional 66 shares during the last quarter. 79.82% of the stock is owned by institutional investors and hedge funds.

Palo Alto Networks Stock Performance

The stock has a fifty day simple moving average of $180.06 and a 200 day simple moving average of $184.86. The firm has a market cap of $111.03 billion, a P/E ratio of 94.47, a price-to-earnings-growth ratio of 5.64 and a beta of 1.07.

Palo Alto Networks (NASDAQ:PANW) last released its quarterly earnings data on Thursday, February 13th. The network technology company reported $0.81 EPS for the quarter, topping the consensus estimate of $0.75 by $0.06. The company had revenue of $2.26 billion during the quarter, compared to the consensus estimate of $2.24 billion. Palo Alto Networks had a return on equity of 21.93% and a net margin of 14.64%. Research analysts predict that Palo Alto Networks, Inc. will post 1.76 earnings per share for the current year.

Palo Alto Networks Company Profile

Palo Alto Networks, Inc provides cybersecurity solutions worldwide. The company offers firewall appliances and software; and Panorama, a security management solution for the global control of network security platform as a virtual or a physical appliance. It also provides subscription services covering the areas of threat prevention, malware and persistent threat, URL filtering, laptop and mobile device protection, DNS security, Internet of Things security, SaaS security API, and SaaS security inline, as well as threat intelligence, and data loss prevention.