Palo Alto Networks (NASDAQ:PANW) Trading Down 6.8% After Analyst Downgrade

Shares of Palo Alto Networks, Inc. (NASDAQ:PANW) dropped 6.8% during trading on Wednesday after Stifel Nicolaus lowered their price target on the stock from $200.00 to $185.00. Stifel Nicolaus currently has a buy rating on the stock. Palo Alto Networks traded as low as $147.15 and last traded at $152.35. Approximately 26,707,249 shares traded hands during mid-day trading, an increase of 146% from the average daily volume of 10,877,143 shares. The stock had previously closed at $163.50.

Other equities analysts also recently issued reports about the company. Oppenheimer restated an “outperform” rating and issued a $245.00 price objective on shares of Palo Alto Networks in a report on Thursday, November 20th. Susquehanna cut their price objective on Palo Alto Networks from $230.00 to $200.00 and set a “positive” rating on the stock in a research report on Wednesday. Evercore upped their target price on Palo Alto Networks from $220.00 to $250.00 and gave the stock an “outperform” rating in a research report on Thursday, November 13th. Loop Capital dropped their target price on Palo Alto Networks from $190.00 to $160.00 and set a “hold” rating on the stock in a report on Wednesday. Finally, Sanford C. Bernstein set a $209.00 price target on Palo Alto Networks and gave the stock an “outperform” rating in a report on Wednesday. Thirty-three investment analysts have rated the stock with a Buy rating and nine have given a Hold rating to the company’s stock. According to MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and a consensus price target of $215.68.

Insider Activity at Palo Alto Networks

In other Palo Alto Networks news, EVP Dipak Golechha sold 5,000 shares of the company’s stock in a transaction that occurred on Tuesday, December 23rd. The stock was sold at an average price of $188.18, for a total transaction of $940,900.00. Following the sale, the executive vice president owned 155,119 shares in the company, valued at $29,190,293.42. This represents a 3.12% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through this link. Also, CAO Josh D. Paul sold 800 shares of Palo Alto Networks stock in a transaction that occurred on Friday, January 2nd. The stock was sold at an average price of $184.81, for a total value of $147,848.00. Following the completion of the transaction, the chief accounting officer owned 46,005 shares of the company’s stock, valued at approximately $8,502,184.05. The trade was a 1.71% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold a total of 260,542 shares of company stock worth $49,910,995 in the last ninety days. 1.40% of the stock is currently owned by corporate insiders.

Trending Headlines about Palo Alto Networks

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

• Positive Sentiment: Q2 results beat expectations — PANW reported $1.03 EPS and roughly $2.59B revenue, with Next‑Gen Security ARR up ~33% and raised full‑year revenue to ~ $11.28–11.31B, supporting longer‑term growth. Palo Alto Networks Q2 Earnings and Revenues Surpass Estimates
• Positive Sentiment: Company presentation and press release highlight 15% revenue growth Y/Y, strong subscription momentum and a growing RPO backlog that could sustain future revenue. Palo Alto Networks Reports Fiscal Second Quarter 2026 Financial Results
• Neutral Sentiment: Product and research announcements (MSIAM 2.0, Unit 42 report) reinforce PANW’s market positioning in AI/agentic endpoint security but are longer‑term drivers rather than immediate catalysts. Palo Alto Networks Introduces MSIAM 2.0
• Neutral Sentiment: Some analysts (Jefferies, others) describe the quarter as a buy‑the‑dip opportunity, noting platform strength but acknowledging near‑term M&A headwinds. Palo Alto to emerge stronger despite M&A headwinds, Jefferies analysts say
• Negative Sentiment: Management lowered profit guidance for the current period and flagged higher integration costs tied to recent deals (CyberArk, Chronosphere, Koi), prompting sharp selling. Palo Alto shares fall as deal costs pile up amid AI security push
• Negative Sentiment: Market reaction: shares plunged in pre‑market/after‑hours trading and coverage changes followed — multiple firms trimmed price targets and the stock saw heavy volume. Palo Alto Networks’ Deals Are Dragging on Its Profit Outlook. The Stock Is Falling
• Negative Sentiment: Coverage notes and headlines emphasize “dismal guidance” and CEO defense of strategy as software/AI sentiment pressures the sector, amplifying the sell‑off. Palo Alto shares sink 8%, CEO defends cybersecurity’s position as AI hits software stocks
• Negative Sentiment: Real‑time coverage explains the stock drop and investor concern over earnings guidance vs. expectations. Why Palo Alto Networks (PANW) Is Really Down 6.5% This Morning

Institutional Trading of Palo Alto Networks

Institutional investors have recently added to or reduced their stakes in the business. Darwin Wealth Management LLC bought a new stake in shares of Palo Alto Networks in the 2nd quarter worth approximately $25,000. Steph & Co. lifted its stake in Palo Alto Networks by 88.2% in the fourth quarter. Steph & Co. now owns 143 shares of the network technology company’s stock valued at $26,000 after buying an additional 67 shares during the last quarter. Knuff & Co LLC bought a new stake in Palo Alto Networks in the fourth quarter valued at $26,000. Whipplewood Advisors LLC boosted its holdings in shares of Palo Alto Networks by 6,400.0% during the second quarter. Whipplewood Advisors LLC now owns 130 shares of the network technology company’s stock valued at $27,000 after acquiring an additional 128 shares during the period. Finally, Sittner & Nelson LLC grew its position in shares of Palo Alto Networks by 73.8% during the fourth quarter. Sittner & Nelson LLC now owns 146 shares of the network technology company’s stock worth $27,000 after acquiring an additional 62 shares during the last quarter. Institutional investors own 79.82% of the company’s stock.

Palo Alto Networks Stock Performance

The firm has a market cap of $106.19 billion, a price-to-earnings ratio of 96.42, a PEG ratio of 3.99 and a beta of 0.75. The stock’s fifty day moving average is $181.06 and its two-hundred day moving average is $192.21.

Palo Alto Networks (NASDAQ:PANW) last posted its earnings results on Tuesday, February 17th. The network technology company reported $1.03 EPS for the quarter, topping the consensus estimate of $0.94 by $0.09. The firm had revenue of $2.59 billion during the quarter, compared to analysts’ expectations of $2.58 billion. Palo Alto Networks had a net margin of 11.69% and a return on equity of 17.05%. Palo Alto Networks’s quarterly revenue was up 14.9% on a year-over-year basis. During the same quarter in the prior year, the firm earned $0.81 EPS. Palo Alto Networks has set its FY 2026 guidance at 3.650-3.700 EPS and its Q3 2026 guidance at 0.780-0.800 EPS. Sell-side 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 (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.