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

Palo Alto Networks, Inc. (NASDAQ:PANW) shares dropped 1.7% during mid-day trading 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. Approximately 23,510,607 shares changed hands during mid-day trading, an increase of 100% from the average daily volume of 11,770,127 shares. The stock had previously closed at $144.14.

A number of other research firms have also recently issued reports on PANW. Mizuho set a $200.00 target price on shares of Palo Alto Networks in a research note on Wednesday, February 18th. Citigroup restated a “buy” rating and set a $210.00 price objective (down from $235.00) on shares of Palo Alto Networks in a report on Thursday, February 19th. Stephens upped their target price on Palo Alto Networks from $205.00 to $215.00 and gave the company an “equal weight” rating in a research report on Thursday, November 20th. Royal Bank Of Canada reissued an “outperform” rating and set a $220.00 price target on shares of Palo Alto Networks in a report on Wednesday, February 18th. Finally, JPMorgan Chase & Co. decreased their price objective on Palo Alto Networks from $225.00 to $200.00 and set an “overweight” rating on the stock in a report on Thursday, February 19th. One investment 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. Based on data from MarketBeat.com, Palo Alto Networks presently has an average rating of “Moderate Buy” and a consensus target price of $211.62.

Insider Activity

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

Key Palo Alto Networks News

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 Investors Weigh In On Palo Alto Networks

Several institutional investors and hedge funds 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 2nd quarter worth about $25,000. Whipplewood Advisors LLC raised its stake in Palo Alto Networks by 6,400.0% during the 2nd quarter. Whipplewood Advisors LLC now owns 130 shares of the network technology company’s stock worth $27,000 after buying an additional 128 shares during the period. Knuff & Co LLC acquired a new position in Palo Alto Networks during the 4th quarter worth approximately $26,000. Howard Hughes Medical Institute bought a new position in Palo Alto Networks in the second quarter worth approximately $29,000. Finally, Steph & Co. grew 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 acquiring an additional 67 shares during the period. Institutional investors and hedge funds own 79.82% of the company’s stock.

Palo Alto Networks Price Performance

The company has a fifty day moving average price of $177.77 and a 200 day moving average price of $191.61. The stock has a market cap of $115.60 billion, a P/E ratio of 78.27, a P/E/G ratio of 5.38 and a beta of 0.75.

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