Palo Alto Networks (NASDAQ:PANW) Stock Price Down 1.7% on Analyst Downgrade

Palo Alto Networks, Inc. (NASDAQ:PANW) shares fell 1.7% on Tuesday after Daiwa Securities Group lowered their price target on the stock from $212.00 to $175.00. Daiwa Securities Group currently has an outperform rating on the stock. Palo Alto Networks traded as low as $139.57 and last traded at $141.67. 23,510,607 shares traded hands during trading, an increase of 100% from the average session volume of 11,770,127 shares. The stock had previously closed at $144.14.

Several other equities analysts also recently commented on the company. Stephens upped their price objective on Palo Alto Networks from $205.00 to $215.00 and gave the company an “equal weight” rating in a research note on Thursday, November 20th. Barclays set a $200.00 price target on Palo Alto Networks and gave the stock an “overweight” rating in a research note on Monday, February 9th. Northland Securities boosted their price objective on Palo Alto Networks from $177.00 to $190.00 and gave the company a “market perform” rating in a research note on Thursday, November 20th. Argus raised shares of Palo Alto Networks to a “strong-buy” rating in a report on Friday. Finally, Scotiabank reiterated an “outperform” rating on shares of Palo Alto Networks in a research note on Wednesday, February 18th. One research analyst has rated the stock with a Strong Buy rating, thirty-four have assigned a Buy rating and nine have assigned a Hold rating to the company. According to MarketBeat.com, the company has an average rating of “Moderate Buy” and a consensus price target of $211.62.

Insider Activity

In related news, Director James J. Goetz sold 12,500 shares of the stock in a transaction on Monday, December 8th. The stock was sold at an average price of $195.33, for a total value of $2,441,625.00. Following the transaction, the director owned 75,184 shares of the company’s stock, valued at $14,685,690.72. This represents a 14.26% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, EVP Lee Klarich sold 120,768 shares of the stock in a transaction dated Thursday, January 8th. The shares were sold at an average price of $191.03, for a total value of $23,070,311.04. Following the transaction, the executive vice president owned 298,887 shares in the company, valued at $57,096,383.61. This trade represents a 28.78% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last 90 days, insiders have sold 260,542 shares of company stock valued at $49,910,995. 1.40% of the stock is owned by company insiders.

Key Stories Impacting Palo Alto Networks

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

• Positive Sentiment: Analysts collectively still favor the stock — PANW received an average rating of “Moderate Buy,” supporting buy-side interest despite recent weakness. Palo Alto Networks, Inc. (NASDAQ:PANW) Receives Average Rating of “Moderate Buy” from Analysts
• Positive Sentiment: At least one analyst raised FY2026 EPS estimates for PANW, signaling some confidence in longer-term revenue and profit trajectory after recent results. FY2026 EPS Estimate for Palo Alto Networks Raised by Analyst
• Neutral Sentiment: Industry comparison: analysis contrasts CrowdStrike’s acquisition-driven growth with Palo Alto’s platform approach — both benefit from AI demand but strategy differences could sway investors depending on M&A appetite and margin tradeoffs. Cybersecurity Showdown: CrowdStrike’s Acquisition Spree vs Palo Alto’s Platform Play
• Neutral Sentiment: Coverage pieces and TV commentary (e.g., Jim Cramer) kept PANW in the spotlight; media attention can amplify moves but contains mixed takes rather than new company-specific catalysts. Jim Cramer Discusses Palo Alto Networks’ (PANW) Earnings
• Neutral Sentiment: Investor guides and “buy the dip” pieces note solid recent revenue growth but flag that acquisitions will weigh on near-term EPS — useful context but not an immediate catalyst. Is It Time to Buy Palo Alto Networks Stock on the Dip?
• Neutral Sentiment: PANW is a trending stock on retail/analyst platforms; attention can increase volatility but is not a directional fundamental driver by itself. Palo Alto Networks, Inc. (PANW) Is a Trending Stock
• Negative Sentiment: Analysis argues Q3 EPS was effectively pressured by share dilution, suggesting the reported beat may overstate per-share profitability and contributing to investor concern about dilution from acquisitions. Palo Alto Networks: Organic Growth Begins To Normalize, Q3 EPS Miss Driven By Share Dilution
• Negative Sentiment: Daiwa cut its price target from $212 to $175 while keeping an outperform rating — a notable PT reduction that can weigh on sentiment even though upside remains per the analyst. Daiwa Securities Adjusts PT on Palo Alto Networks to $175
• Negative Sentiment: Sector-level fear: CNBC reports cybersecurity names fell after Anthropic released an AI tool that can scan code for vulnerabilities — investors worry such tools could displace parts of vendors’ software value proposition. Cybersecurity stocks drop for a second day as new Anthropic tool fuels AI disruption fears

Institutional Inflows and Outflows

Several large investors have recently made changes to their positions in PANW. Darwin Wealth Management LLC bought a new position in shares of Palo Alto Networks during the second quarter valued at approximately $25,000. Steph & Co. increased its position in Palo Alto Networks by 88.2% during the 4th 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 period. Knuff & Co LLC bought a new position in Palo Alto Networks in the 4th quarter worth $26,000. Whipplewood Advisors LLC raised its holdings 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 purchasing an additional 128 shares in the last quarter. Finally, Sittner & Nelson LLC lifted its position 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 purchasing an additional 62 shares during the period. 79.82% of the stock is owned by hedge funds and other institutional investors.

Palo Alto Networks Trading Down 1.7%

The business’s 50 day moving average price is $177.77 and its two-hundred day moving average price is $191.61. The stock has a market cap of $115.60 billion, a P/E ratio of 78.27, a price-to-earnings-growth ratio of 5.38 and a beta of 0.75.

Palo Alto Networks (NASDAQ:PANW) last posted its quarterly earnings data on Tuesday, February 17th. The network technology company reported $1.03 earnings per share for the quarter, beating the consensus estimate of $0.94 by $0.09. Palo Alto Networks had a return on equity of 17.60% and a net margin of 12.96%.The business had revenue of $2.59 billion for the quarter, compared to analysts’ expectations of $2.58 billion. During the same period in the previous year, the firm posted $0.81 EPS. The business’s revenue was up 14.9% on a year-over-year basis. 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. As a group, analysts expect that Palo Alto Networks, Inc. will post 1.76 earnings per share for the current year.

About Palo Alto Networks

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.