HSBC Securities has recently reduced Palo Alto Networks Inc (PANW) stock to Reduce rating, as announced on November 22, 2024, according to Finviz. Earlier, on November 21, 2024, Rosenblatt had raised the stock from a Neutral to Buy, setting a price target of $430 for PANW stock. Wells Fargo also reiterated Overweight rating with a price target of $450. Additionally, Susquehanna reiterated Positive rating on November 21, 2024, with a target price of $435. Robert W. Baird analysts, in their report published on November 21, 2024, also reiterated Outperform rating and set a price target of $435 for Palo Alto Networks Inc’s stock. Analyst ratings are significant because they provide insights into stock performance expectations, influencing investor decisions and market sentiment.
Palo Alto Networks Inc (PANW) Stock Trading Recap
On Tuesday, Palo Alto Networks Inc (PANW) stock saw a modest uptick, ending the day at $392.59 which represents a slight increase of $2.42 or 0.62% from the prior close of $390.17. The stock opened at $388.07 and touched a low of $386.86 during the day, reaching a high of $395.75. The volume of shares traded was 2.58 million exceeding the average volume of 2.48 million.
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PANW Stock Performance and Moving Averages
In recent trading, Palo Alto Networks Inc (PANW) stock price has shown some volatility, fluctuating 1.61% over the last five trades and 8.26% over the past 30 trades. This represents a notable shift from earlier in the year. Over the last six months, the stock has risen by 35.33%, and it has gained 13.42% in the previous three months. Currently, PANW is trading at 0.71%, 5.98%, and 20.13% relative to its 20-Day, 50-Day, and 200-Day Simple Moving Averages, respectively.
As of the latest trading close, PANW, a Technology sector stock, is trading -3.90% below its 52-week high but remains 50.94% above its 52-week low. The Average True Range (ATR) (14 days) of 10.54 highlights the stock’s average volatility, providing insight into how much the price typically fluctuates. This measure is crucial for understanding potential price swings and assessing overall market risk.
Palo Alto Networks Inc’s Profitability and Valuation Ratios
Palo Alto Networks Inc’s profitability metrics reveal financial health. The company currently boasts an operating margin of 9.72% and a profit margin of 32.99%, with a gross margin of 35.33%. The profit margin, also known as the revenue ratio or gross profit ratio, measures how efficiently a company converts sales into net income; higher margins indicate greater profitability.
In terms of valuation, Palo Alto Networks Inc’s market capitalization stands at $128.81 billion. Market cap represents the total value of all outstanding shares and is a key indicator of a company’s market value. The stock’s price-to-earnings (P/E) ratio is 51.17, assessing the company’s valuation relative to its earnings. The forward P/E ratio, which uses projected earnings for the next financial year, is 54.11. Additionally, the Price-to-Sales Ratio is 15.54, reflecting the market’s valuation of the company’s sales, while the Price-to-Book Ratio is 21.76, comparing the market value to the company’s book value.
Understanding Insider Trading
Investors often prefer to invest in shares held by company insiders, as management is typically more aligned with the company’s success and shareholder interests. Currently, insiders own just 0.00% of Palo Alto Networks Inc (PANW)’s shares, while financial institutions hold 77.71%.
Notable insider trades include Klarich Lee, EVP, Chief Product Officer at Palo Alto Networks Inc (PANW), who sold 60000 shares on Dec 02 ’24, at $389.41 each, totaling $23.36 million. On Dec 02 ’24, Golechha Dipak, EVP, Chief Financial Officer, sold 2500 shares for $390.24 each, amounting to $0.98 million. Additionally, on Nov 25 ’24, ZUK NIR sold 168000 shares at $387.39 each, generating $65.08 million.
