Palo Alto Networks Inc. (NASDAQ:PANW) finished Thursday with a subtraction of -$8.21 to close at $227.45, a downside of -3.48 percent. An average of 8,820,980 shares of common stock have been traded in the last five days. There was a gain of $19.88 in the past week, and it reached a new high 23 times over the past 12 months. The last 20 days have seen an average of 6,015,100 shares traded, while the 50-day average volume stands at 6,425,356.
PANW stock has decreased by -7.17% in the last month. The company shares reached their 1-month lowest point of $201.17 on 08/18/23. With the stock rallying to its 52-week high on 07/05/23, shares of the company touched a low of $132.22 and a high of $258.88 in 52 weeks. It has reached a new high 40 times so far this year and achieved 63.00% or $87.91 in price. In spite of this, the price is down -12.14% from the 52-week high.
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Insider Transactions
PANW stock investors should be aware that Palo Alto Networks Inc. (PANW) stock had its last reported insider trading activity 2 days ago on Aug 23. In this transaction, the insider spent $170,698. Director, Eschenbach Carl M., disposed of 7,482 shares at a price of $237.00 on Aug 22. The insider now owns more than $1,773,207 worth of shares. Prior to that, EVP, Chief Product Officer Klarich Lee went on to Sale 45,000 shares at $215.17 each on Aug 07. An amount of $9,682,621 was transacted.
Valuation Metrics
Palo Alto Networks Inc. (PANW) has a trailing price-to-earnings (P/E) ratio of 357.06. The stock’s beta is 1.20. Other valuation ratios to consider include the trailing price-to-sales (P/S) ratio at 10.61, the price-to-book (PB) ratio at 56.02, and the price-to-cash flow ratio at 25.61.
Financial Health
The quick ratio of Palo Alto Networks Inc. for the three months ended July 30 was 0.70, and the current ratio was 0.70, indicating that the company is not able to meet its debt obligations. Further, the company has a long term debt to equity ratio of 0.00 and a total debt to equity ratio of 2.99 for the quarter ending July 30. Palo Alto Networks Inc.’s EBITDA margin for the year ending July 30 is 2.69%, while its operating margin for the same period stands at 0.40%. Its gross profit as reported stood at $3.78 billion compared to revenue of $5.5 billion.
For investors, determining the potential profitability of the investment also depends on the performance of the company’s management. In the past 12 months, Palo Alto Networks Inc.’s return on assets was 0.30%.
Earnings Surprise
In the quarter under review, the net income was up than the previous quarter. The company posted a net income of $107.8 million in the quarter, while revenues of $84.2 million were grew 167.9%. The analyst consensus anticipated Palo Alto Networks Inc.’s latest quarter earnings to come in at $1.28 per share, but it turned out to be $1.44, a 12.50% surprise. For the quarter, EBITDA amounted to $246.2 million. Shareholders own equity worth $305.86 million.
Technical Picture
From a technical analysis perspective, let’s take a brief look at Palo Alto Networks Inc. (PANW) price momentum. RSI 9-day as of the close on 24 August was 50.91%, suggesting the stock is Neutral, with historical volatility in this time frame at 78.98%.
As of today, PANW’s price is $229.63 +9.58% or $19.88 from its 5-day moving average. PANW is currently trading -7.27% lower than its 20-day SMA and +13.87% higher than its 100-day SMA. However, the stock’s current price level is -2.65% below the SMA50 and +59.94% above the SMA200.
The stochastic %K and %D were 69.55% and 68.17%, respectively, and the average true range (ATR) was 10.16. With the 14-day stochastic at 58.23% and the average true range at 9.39, the RSI (14) stands at 49.26%. The stock has reached 9.81 on the 9-day MACD Oscillator while the 14-day reading was at 12.78.
Analyst Ratings
BTIG Research reiterated its a Buy rating on Palo Alto Networks Inc. (NASDAQ: PANW), but raised their price target to $259, indicating a potential price increase of 12.18% for the stock. The consensus rating for Palo Alto Networks Inc. (PANW) among analysts is Buy. According to current brokerage recommendations, 0 brokerage firms advise that investors sell PANW, while 5 suggest investors hold. There are 0 analysts who rate the stock as underweight. The stock is rated overweight by 4 analysts, while 33 others rate it as a “buy”.
What is PANW’s price target for the next 12 months?
Analysts predict a range of price targets between $225.00 and $304.00, with a median target of $275.00. Taking a look at these predictions, the average price target given by analysts for Palo Alto Networks Inc. (PANW) stock is $274.10.
