Palo Alto Networks (NASDAQ:PANW) Cut to Reduce at HSBC

HSBC lowered shares of Palo Alto Networks (NASDAQ:PANW) from a hold rating to a reduce rating in a research report report published on Friday morning, Marketbeat Ratings reports. They currently have $291.00 price objective on the network technology company’s stock, down from their prior price objective of $304.00.

Several other analysts have also recently commented on the company. Needham & Company LLC raised their target price on Palo Alto Networks from $385.00 to $450.00 and gave the stock a “buy” rating in a research report on Thursday. BTIG Research raised their price objective on Palo Alto Networks from $395.00 to $414.00 and gave the stock a “buy” rating in a research report on Thursday. Royal Bank of Canada reiterated an “outperform” rating and issued a $450.00 target price on shares of Palo Alto Networks in a report on Thursday. Robert W. Baird raised their price target on shares of Palo Alto Networks from $385.00 to $425.00 and gave the stock an “outperform” rating in a report on Friday, November 15th. Finally, OTR Global reiterated a “negative” rating on shares of Palo Alto Networks in a research note on Thursday, November 7th. Two investment analysts have rated the stock with a sell rating, ten have given a hold rating, thirty-one have issued a buy rating and one has assigned a strong buy rating to the stock. Based on data from MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and a consensus price target of $402.03.

Palo Alto Networks Stock Performance

Shares of NASDAQ:PANW opened at $383.36 on Friday. The company has a market capitalization of $124.82 billion, a PE ratio of 49.92, a price-to-earnings-growth ratio of 5.76 and a beta of 1.12. The stock has a fifty day moving average of $364.32 and a 200-day moving average of $339.89. Palo Alto Networks has a one year low of $260.09 and a one year high of $408.53.

Shares of Palo Alto Networks are set to split on Monday, December 16th. The 2-1 split was announced on Wednesday, November 20th. The newly minted shares will be payable to shareholders after the closing bell on Friday, December 13th.

Palo Alto Networks (NASDAQ:PANW) last released its quarterly earnings results on Wednesday, November 20th. The network technology company reported $1.56 earnings per share for the quarter, beating analysts’ consensus estimates of $1.48 by $0.08. Palo Alto Networks had a return on equity of 23.36% and a net margin of 32.99%. The business had revenue of $2.14 billion during the quarter, compared to analyst estimates of $2.12 billion. During the same quarter last year, the company posted $0.63 EPS. Palo Alto Networks’s revenue for the quarter was up 13.9% on a year-over-year basis. As a group, research analysts forecast that Palo Alto Networks will post 3.57 EPS for the current fiscal year.

Insider Activity at Palo Alto Networks

In other news, Director Mary Pat Mccarthy sold 10,000 shares of the firm’s stock in a transaction dated Tuesday, August 27th. The shares were sold at an average price of $348.49, for a total transaction of $3,484,900.00. Following the completion of the transaction, the director now directly owns 31,517 shares of the company’s stock, valued at approximately $10,983,359.33. This trade represents a 24.09 % decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CEO Nikesh Arora sold 81,586 shares of the company’s stock in a transaction dated Thursday, October 10th. The shares were sold at an average price of $367.99, for a total transaction of $30,022,832.14. Following the completion of the sale, the chief executive officer now directly owns 618,715 shares in the company, valued at approximately $227,680,932.85. The trade was a 11.65 % decrease in their position. The disclosure for this sale can be found here. Over the last 90 days, insiders sold 254,252 shares of company stock worth $89,041,637. Company insiders own 2.50% of the company’s stock.

Institutional Investors Weigh In On Palo Alto Networks

Institutional investors have recently added to or reduced their stakes in the stock. Pathway Financial Advisers LLC bought a new stake in Palo Alto Networks in the first quarter valued at $25,000. Capital Advisors Ltd. LLC boosted its stake in shares of Palo Alto Networks by 113.9% in the 3rd quarter. Capital Advisors Ltd. LLC now owns 77 shares of the network technology company’s stock valued at $26,000 after purchasing an additional 41 shares in the last quarter. Sound Income Strategies LLC grew its holdings in shares of Palo Alto Networks by 352.6% in the 3rd quarter. Sound Income Strategies LLC now owns 86 shares of the network technology company’s stock worth $29,000 after purchasing an additional 67 shares during the last quarter. Strategic Investment Solutions Inc. IL increased its position in shares of Palo Alto Networks by 177.4% during the 3rd quarter. Strategic Investment Solutions Inc. IL now owns 86 shares of the network technology company’s stock worth $29,000 after purchasing an additional 55 shares in the last quarter. Finally, Itau Unibanco Holding S.A. bought a new position in Palo Alto Networks during the 3rd quarter valued at about $29,000. 79.82% of the stock is owned by institutional investors and hedge funds.

About Palo Alto Networks

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.