Palo Alto Networks (NASDAQ:PANW) Stock Price Down 2.1% Following Analyst Downgrade

Palo Alto Networks, Inc. (NASDAQ:PANW)’s share price was down 2.1% during mid-day trading on Tuesday 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 $160.08 and last traded at $163.50. Approximately 14,356,438 shares were traded during mid-day trading, an increase of 40% from the average daily volume of 10,240,358 shares. The stock had previously closed at $166.95.

Several other analysts have also issued reports on the stock. The Goldman Sachs Group cut their price target on shares of Palo Alto Networks from $240.00 to $224.00 and set a “buy” rating for the company in a research report on Wednesday. HSBC cut Palo Alto Networks from a “hold” rating to a “reduce” rating and set a $157.00 target price for the company. in a report on Thursday, November 20th. UBS Group set a $215.00 price target on Palo Alto Networks and gave the stock a “neutral” rating in a research note on Tuesday, January 13th. Scotiabank lowered their price objective on Palo Alto Networks from $228.00 to $180.00 and set a “sector outperform” rating for the company in a research report on Wednesday. Finally, Mizuho set a $200.00 target price on shares of Palo Alto Networks in a report on Wednesday. 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 data from MarketBeat, the stock currently has an average rating of “Moderate Buy” and an average target price of $215.68.

Insider Activity at Palo Alto Networks

In other Palo Alto Networks news, EVP Lee Klarich sold 120,768 shares of the firm’s 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 completion of the sale, the executive vice president directly 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. The sale was disclosed in a filing with the SEC, which is available at this link. Also, EVP Dipak Golechha sold 5,000 shares of Palo Alto Networks stock in a transaction that occurred on Tuesday, December 23rd. The shares were sold at an average price of $188.18, for a total value of $940,900.00. Following the sale, the executive vice president directly owned 155,119 shares in the company, valued at approximately $29,190,293.42. The trade was a 3.12% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last ninety days, insiders have sold 260,542 shares of company stock worth $49,910,995. 1.40% of the stock is currently owned by insiders.

Trending Headlines about Palo Alto Networks

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

• Positive Sentiment: Q2 results beat estimates—EPS $1.03 and revenue roughly $2.59B; Next‑Gen Security ARR grew ~33% and RPO rose, supporting recurring revenue momentum. Palo Alto Networks Reports Fiscal Second Quarter 2026 Financial Results
• Positive Sentiment: Company raised full‑year revenue outlook to about $11.28–11.31B, signaling continued top‑line strength from its platform strategy. Palo Alto Networks Lifts Revenue Outlook as Second‑Quarter Profit Jumps (WSJ)
• Positive Sentiment: Management is investing to secure the AI/agentic endpoint (Koi acquisition) and expand capabilities (CyberArk, Chronosphere), which could strengthen long‑term competitive positioning. Palo Alto Announces Intent to Acquire Koi (PRNewswire)
• Neutral Sentiment: Analysts and firms are mixed—some reaffirmed outperform/buy ratings and cited long‑term upside while others trimmed price targets; overall street sentiment remains largely constructive but cautious. Jefferies: Palo Alto to emerge stronger despite M&A headwinds
• Negative Sentiment: Management lowered near‑term profit guidance, citing higher integration and acquisition costs—this cut to the profit outlook is the primary driver of the share decline. Palo Alto shares fall as deal costs pile up (Reuters)
• Negative Sentiment: Multiple brokers trimmed price targets and adjusted models after the guidance update (Deutsche, Goldman, Scotiabank, Loop, Stifel, BMO, Needham, Susquehanna, etc.), adding selling pressure. Analyst price‑target adjustments (MarketScreener example)
• Negative Sentiment: Sector and AI‑software weakness amplified the move—CEO sought to defend the company’s differentiation, but market sentiment for high‑growth software names remains tenuous. Palo Alto shares sink as CEO defends strategy (CNBC)

Hedge Funds Weigh In On Palo Alto Networks

A number of institutional investors have recently added to or reduced their stakes in PANW. Darwin Wealth Management LLC purchased a new position in Palo Alto Networks during the 2nd quarter valued at about $25,000. Whipplewood Advisors LLC lifted 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 purchasing an additional 128 shares during the last quarter. Briaud Financial Planning Inc bought a new stake in shares of Palo Alto Networks in the 2nd quarter worth approximately $28,000. Knuff & Co LLC purchased a new stake in shares of Palo Alto Networks in the 4th quarter worth approximately $26,000. Finally, Howard Hughes Medical Institute purchased a new stake in shares of Palo Alto Networks in the 2nd quarter worth approximately $29,000. Institutional investors own 79.82% of the company’s stock.

Palo Alto Networks Price Performance

The stock has a 50 day simple moving average of $180.25 and a 200-day simple moving average of $191.93. The firm has a market cap of $106.19 billion, a PE ratio of 84.17, a PEG ratio of 3.91 and a beta of 0.75.

Palo Alto Networks (NASDAQ:PANW) last released its earnings results on Tuesday, February 17th. The network technology company reported $1.03 EPS for the quarter, topping analysts’ consensus estimates of $0.94 by $0.09. The firm had revenue of $2.59 billion for the quarter, compared to analysts’ expectations of $2.58 billion. Palo Alto Networks had a return on equity of 18.42% 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 period in the prior year, the firm posted $0.81 earnings per share. 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, equities analysts predict that Palo Alto Networks, Inc. will post 1.76 EPS for the current fiscal 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.