Palo Alto Networks (NASDAQ:PANW) Shares Down 1.5% Following Analyst Downgrade

Palo Alto Networks, Inc. (NASDAQ:PANW)’s share price dropped 1.5% during trading on Thursday after Rosenblatt Securities lowered their price target on the stock from $250.00 to $225.00. Rosenblatt Securities currently has a buy rating on the stock. Palo Alto Networks traded as low as $157.81 and last traded at $162.81. Approximately 19,615,860 shares changed hands during trading, an increase of 95% from the average daily volume of 10,036,732 shares. The stock had previously closed at $165.30.

Other equities analysts have also issued reports about the company. Barclays set a $200.00 price objective on Palo Alto Networks and gave the company an “overweight” rating in a report on Monday. DA Davidson cut their price target on Palo Alto Networks from $240.00 to $210.00 and set a “buy” rating for the company in a research note on Wednesday. Needham & Company LLC restated a “buy” rating and issued a $230.00 price objective on shares of Palo Alto Networks in a research note on Wednesday, January 28th. Weiss Ratings reaffirmed a “hold (c)” rating on shares of Palo Alto Networks in a report on Monday, December 29th. Finally, JPMorgan Chase & Co. reduced their target price on shares of Palo Alto Networks from $235.00 to $225.00 and set an “overweight” rating for the company in a research note on Tuesday. Thirty-one research analysts have rated the stock with a Buy rating, seven have given a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat.com, the stock has an average rating of “Moderate Buy” and an average target price of $224.74.

Insider Activity

In related news, Director James J. Goetz sold 12,500 shares of the company’s stock in a transaction that occurred on Monday, December 8th. The shares were sold at an average price of $195.33, for a total transaction of $2,441,625.00. Following the sale, the director owned 75,184 shares of the company’s stock, valued at approximately $14,685,690.72. This represents a 14.26% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Also, EVP Lee Klarich sold 120,768 shares of the firm’s stock in a transaction on Thursday, January 8th. The shares were sold at an average price of $191.03, for a total transaction of $23,070,311.04. Following the completion of the transaction, the executive vice president directly owned 298,887 shares of the company’s stock, valued at approximately $57,096,383.61. The trade was a 28.78% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last three months, insiders sold 260,542 shares of company stock valued at $49,910,995. Corporate insiders own 1.40% of the company’s stock.

Key Stories Impacting Palo Alto Networks

Here are the key news stories impacting Palo Alto Networks this week:

• Positive Sentiment: Palo Alto completed its acquisition of CyberArk, adding identity-security capabilities that management says strengthen its AI-era security platform — a strategic bolt-on that supports longer-term revenue and product integration potential. Palo Alto Networks Completes Acquisition of CyberArk
• Neutral Sentiment: The company is planning a dual listing on the Tel-Aviv Stock Exchange following the CyberArk deal — a structural move that could broaden investor access but also draws attention to regional/regulatory considerations. Cybersecurity Stock in the Spotlight Ahead of Earnings
• Neutral Sentiment: Analysts have trimmed price targets but largely maintained buy ratings — suggesting confidence in long-term fundamentals even as near‑term valuation expectations are moderated. (Examples: Rosenblatt, BTIG, DA Davidson cut PTs while keeping buy ratings.) Rosenblatt Adjusts PT to $225
• Negative Sentiment: Several firms lowered their price targets this week (BTIG from $248→$200, DA Davidson $240→$210, Rosenblatt $250→$225), which puts downward pressure on the stock despite buy ratings — investors view the cuts as reduced near‑term upside. BTIG Price Target Lowered
• Negative Sentiment: Reuters reports Palo Alto chose not to explicitly attribute a recent global cyberespionage campaign to China out of concern for possible retaliation — a disclosure/PR judgment that raises geopolitical and client-risk concerns and may weigh on sentiment. Palo Alto chose not to tie China to hacking campaign
• Negative Sentiment: Market commentary noted PANW falling more steeply than the broader market and cited the dual-listing/merger headlines as drivers of the weakness; trading volume is elevated, indicating active repositioning by investors. Palo Alto Networks Falls More Steeply Than Broader Market

Hedge Funds Weigh In On Palo Alto Networks

Several hedge funds and other institutional investors have recently added to or reduced their stakes in PANW. Darwin Wealth Management LLC purchased a new position in shares of Palo Alto Networks during the second quarter worth about $25,000. Steph & Co. lifted its position in Palo Alto Networks by 88.2% during the fourth quarter. Steph & Co. now owns 143 shares of the network technology company’s stock valued at $26,000 after purchasing an additional 67 shares during the last quarter. Knuff & Co LLC purchased a new position in Palo Alto Networks in the 4th quarter worth approximately $26,000. Whipplewood Advisors LLC grew its stake in Palo Alto Networks by 6,400.0% in the 2nd quarter. Whipplewood Advisors LLC now owns 130 shares of the network technology company’s stock worth $27,000 after buying an additional 128 shares in the last quarter. Finally, Sittner & Nelson LLC increased its holdings in shares of Palo Alto Networks by 73.8% in the 4th quarter. Sittner & Nelson LLC now owns 146 shares of the network technology company’s stock worth $27,000 after buying an additional 62 shares during the last quarter. 79.82% of the stock is currently owned by hedge funds and other institutional investors.

Palo Alto Networks Stock Performance

The stock has a market cap of $113.44 billion, a PE ratio of 103.01, a PEG ratio of 3.94 and a beta of 0.75. The company’s 50-day moving average price is $182.90 and its two-hundred day moving average price is $192.53.

Palo Alto Networks (NASDAQ:PANW) last released its earnings results on Thursday, November 20th. The network technology company reported $0.93 EPS for the quarter, beating analysts’ consensus estimates of $0.89 by $0.04. Palo Alto Networks had a return on equity of 17.05% and a net margin of 11.69%.The business had revenue of $2.47 billion for the quarter, compared to analysts’ expectations of $2.46 billion. During the same quarter in the prior year, the firm earned $1.56 earnings per share. The firm’s revenue was up 15.7% on a year-over-year basis. Equities research analysts forecast that Palo Alto Networks, Inc. will post 1.76 earnings per share for the current fiscal year.

Palo Alto Networks Company Profile

Palo Alto Networks (NASDAQ: PANW) is a cybersecurity company founded in 2005 and headquartered in Santa Clara, California. The firm develops a broad suite of security products and services designed to prevent successful cyberattacks and protect enterprise networks, clouds, and endpoints. Built around a platform strategy, its offerings target threat prevention, detection, response and governance across hybrid and multi-cloud environments.

The company’s product portfolio includes next‑generation firewalls as a core on‑premises capability, alongside cloud‑delivered security services and software for securing public and private clouds.