Palo Alto Networks (NASDAQ:PANW) Shares Down 3.1% – Time to Sell?

Palo Alto Networks, Inc. (NASDAQ:PANW)’s stock price was down 3.1% on Monday . The stock traded as low as $143.30 and last traded at $144.14. Approximately 20,825,889 shares changed hands during mid-day trading, an increase of 78% from the average daily volume of 11,667,251 shares. The stock had previously closed at $148.70.

Key Headlines Impacting Palo Alto Networks

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

• Positive Sentiment: Analyst raised FY2026 EPS estimate for PANW, which supports longer‑term earnings potential. FY2026 EPS Estimate for Palo Alto Networks Raised by Analyst
• Positive Sentiment: Bullish analyst / media pieces argue PANW’s broad security portfolio and next‑generation AI-aware products make it a buy on weakness — a positive signal for investors focused on secular growth. Is It Time to Buy Palo Alto Networks Stock on the Dip?
• Neutral Sentiment: PANW is a trending stock on investor sites, increasing attention and volatility; trending status can amplify moves in either direction. Palo Alto Networks, Inc. (PANW) Is a Trending Stock
• Negative Sentiment: Broader sector selling after Anthropic unveiled a tool that can scan code for vulnerabilities — investors fear AI could automate tasks currently sold by cybersecurity vendors, pressuring future software demand. Cybersecurity stocks drop for a second day as new Anthropic tool fuels AI disruption fears
• Negative Sentiment: Several broker actions cut PANW sentiment: HSBC cut its price target to $114 and New Street trimmed its target, and at least one downgrade coincided with intra‑day selling — analyst moves are adding downward pressure. HSBC Cuts Palo Alto Networks (NASDAQ:PANW) Price Target to $114.00 New Street Research Cuts Palo Alto Networks (NASDAQ:PANW) Price Target to $220.00
• Negative Sentiment: News noted the stock traded down after an analyst downgrade, reinforcing short‑term momentum to the downside despite the company’s recent beat. Palo Alto Networks (NASDAQ:PANW) Trading Down 1.5% Following Analyst Downgrade

Analysts Set New Price Targets

PANW has been the subject of a number of recent research reports. Jefferies Financial Group reiterated a “buy” rating on shares of Palo Alto Networks in a report on Wednesday, February 4th. BMO Capital Markets reduced their price objective on Palo Alto Networks from $230.00 to $200.00 and set an “outperform” rating on the stock in a research report on Wednesday, February 18th. BTIG Research restated a “buy” rating and issued a $200.00 target price on shares of Palo Alto Networks in a report on Wednesday, February 18th. Needham & Company LLC reduced their price target on Palo Alto Networks from $230.00 to $200.00 and set a “buy” rating on the stock in a report on Wednesday, February 18th. Finally, JPMorgan Chase & Co. dropped their price objective on shares of Palo Alto Networks from $225.00 to $200.00 and set an “overweight” rating for the company in a report on Thursday. Thirty-three equities research analysts have rated the stock with a Buy rating and nine have given a Hold rating to the stock. According to MarketBeat, Palo Alto Networks currently has an average rating of “Moderate Buy” and an average target price of $212.51.

Palo Alto Networks Stock Down 3.1%

The stock has a fifty day moving average of $178.60 and a 200-day moving average of $191.78. The stock has a market capitalization of $117.62 billion, a price-to-earnings ratio of 79.64, a P/E/G ratio of 5.38 and a beta of 0.75.

Palo Alto Networks (NASDAQ:PANW) last announced its earnings results on Tuesday, February 17th. The network technology company reported $1.03 earnings per share for the quarter, topping the consensus estimate of $0.94 by $0.09. Palo Alto Networks had a net margin of 12.96% and a return on equity of 17.60%. The business had revenue of $2.59 billion during the quarter, compared to the consensus estimate of $2.58 billion. During the same quarter in the prior year, the firm earned $0.81 earnings per share. The business’s quarterly revenue was up 14.9% compared to the same quarter last year. 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. On average, equities analysts forecast that Palo Alto Networks, Inc. will post 1.76 EPS for the current fiscal year.

Insider Buying and Selling at Palo Alto Networks

In other news, EVP Lee Klarich sold 120,768 shares of the stock in a transaction that occurred on 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 sale, the executive vice president directly owned 298,887 shares in the company, valued at $57,096,383.61. This represents a 28.78% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, CAO Josh D. Paul sold 800 shares of the firm’s stock in a transaction that occurred on Friday, January 2nd. The stock was sold at an average price of $184.81, for a total transaction of $147,848.00. Following the transaction, the chief accounting officer directly owned 46,005 shares of the company’s stock, valued at approximately $8,502,184.05. This trade represents a 1.71% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 260,542 shares of company stock worth $49,910,995 over the last ninety days. 1.40% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently added to or reduced their stakes in the company. Brighton Jones LLC boosted its holdings in Palo Alto Networks by 147.7% in the fourth quarter. Brighton Jones LLC now owns 6,761 shares of the network technology company’s stock valued at $1,230,000 after acquiring an additional 4,031 shares during the last quarter. Bison Wealth LLC increased its stake in Palo Alto Networks by 169.1% during the fourth quarter. Bison Wealth LLC now owns 5,212 shares of the network technology company’s stock worth $948,000 after acquiring an additional 3,275 shares during the last quarter. Sivia Capital Partners LLC raised its holdings in shares of Palo Alto Networks by 66.3% in the 2nd quarter. Sivia Capital Partners LLC now owns 3,484 shares of the network technology company’s stock worth $713,000 after purchasing an additional 1,389 shares during the period. Carnegie Investment Counsel lifted its stake in shares of Palo Alto Networks by 15.9% in the 2nd quarter. Carnegie Investment Counsel now owns 3,099 shares of the network technology company’s stock valued at $634,000 after purchasing an additional 424 shares in the last quarter. Finally, AlphaQuest LLC lifted its stake in shares of Palo Alto Networks by 186.3% in the 2nd quarter. AlphaQuest LLC now owns 1,317 shares of the network technology company’s stock valued at $270,000 after purchasing an additional 857 shares in the last quarter. 79.82% of the stock is currently owned by hedge funds and other institutional investors.

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.