The stock of Palo Alto Networks Inc. (NASDAQ:PANW) increased by $1.5 on Tuesday to finish at $233.92, up 0.65 percent. The last five days have seen an average of 3,143,860 shares of common stock traded. 40 times new highs were reached in the current year, with a gain of $94.38. The average number of shares traded over the last 20 days was 6,149,415, while the average volume over the last 50 days totaled 5,273,802.
PANW stock dropped -6.42% since last month. On 08/18/23, the company’s shares reached a one-month low of $201.17. The stock touched a high of $258.88 on 07/05/23, after rallying from a low of $132.22 in 52 weeks. The price of PANW stock has risen by 67.64% or $94.38 this year, reaching a new high 40 times. Still, the stock price is down -9.64% from the 52-week high.
Insider Transactions
PANW stock investors should be aware that Palo Alto Networks Inc. (PANW) stock had its last reported insider trading activity 7 days ago on Aug 23. On Aug 23, Director Bawa Aparna sold 721 shares at $236.75 each. This transaction resulted in the insider making $170,698. On Aug 22, Eschenbach Carl M. sold 7,482 shares at a price of US$237.00. After the transaction, the insider now owns 16,960 shares. EVP, Chief Product Officer Klarich Lee had earlier sold 45,000 shares on Aug 07 for $215.17 a share. The transaction was completed for $9,682,621.
Valuation Metrics
Palo Alto Networks Inc. (PANW) has a trailing price-to-earnings (P/E) ratio of 184.48. Beta for the stock is 1.20. There are also a few other valuation ratios worth considering, including the trailing price-to-sales (P/S) ratio of 10.23, the price-to-book (PB) ratio of 57.62, and the price-to-cash flow ratio of 26.22.
Financial Health
For the three months ended July 30, Palo Alto Networks Inc.’s quick ratio was 0.70, while its current ratio was 0.70, indicating its inability to pay off its debt. As far as profitability goes, gross margin for the trailing twelve months is 72.30% percent. Palo Alto Networks Inc.’s operating margin stood at 0.30% for the same period. Based on annual data, it had gross profit of $3.78 billion and revenue of $5.5 billion.
Investors will also look at the performance of the company’s management in order to determine the potential profitability of their investment. PANW’s return on assets (ROA) during the last 12 months has been 0.30%. There was a -6.40% return on investment (ROI) in the past year. In the meantime, the return on equity (ROE) for the last 12 months was 5.10%.
Earnings Surprise
According to Palo Alto Networks Inc.’s quarterly financial report for the quarter that ended July 30. A higher net income was reported in the quarter under review than the previous quarter. Net income for the quarter came in at $1.72 billion, while revenues rose by 19.42% to $1.66 billion. It was predicted that Palo Alto Networks Inc.’s quarterly earnings would be $1.44, but it ended up being $1.28, beating the consensus by 12.50%. EBITDA was $246.2 million for the quarter. At the end of Palo Alto Networks Inc.’s most recent quarter ended July 30, its liabilities totaled 12.94 billion, while its total debt was $2.27 billion. Equity owned by shareholders amounts to $305.86 million.
Technical Picture
Here’s a quick look at Palo Alto Networks Inc.’s (PANW) price momentum from a technical perspective. As of 29 August, the RSI 9-day stood at 56.89%, suggesting the stock is Neutral, with a 77.28% historical volatility rate.
The stochastic %K and %D were 69.13% and 66.74% respectively, while the average true range (ATR) was 8.35. Based on the 14-day stochastic reading of 72.57%, the RSI (14) reading is 53.51%. On the 9-day MACD Oscillator, the stock is at 4.27, and the 14-day reading is at 8.52.
Analyst Ratings
In a note to investors, BTIG Research maintained its a Buy rating on Palo Alto Networks Inc. (NASDAQ: PANW). However, the firm raised their price target to $270, indicating a possible increase of 9.68% in the stock price. Analysts have assigned Palo Alto Networks Inc. (PANW) an Buy rating. PANW is a stock that is recommended for selling by 0 brokerage firms, while 5 companies recommend holding. The stock is underweighted by 0 analysts. Among the analysts who rate the stock, 4 rates it overweight and 33 others recommend it as a buy.
What is PANW’s price target for the next 12 months?
The current consensus forecast for the stock is between $225.00 and $304.00, with a median target price of $275.00. In analyzing these forecasts, the average price target given by analysts for Palo Alto Networks Inc. (PANW) is $274.10.
