Investors Buy Large Volume of Put Options on Palo Alto Networks (NASDAQ:PANW)

Palo Alto Networks, Inc. (NASDAQ:PANW) was the recipient of unusually large options trading on Thursday. Investors bought 174,264 put options on the company. This represents an increase of approximately 399% compared to the average volume of 34,901 put options.

Wall Street Analysts Forecast Growth

A number of research analysts have commented on PANW shares. Northland Securities upped their target price on shares of Palo Alto Networks from $177.00 to $190.00 and gave the company a “market perform” rating in a research report on Thursday, November 20th. Truist Financial set a $200.00 price target on shares of Palo Alto Networks and gave the company a “buy” rating in a research note on Tuesday. Morgan Stanley restated an “overweight” rating and issued a $223.00 price objective (down from $245.00) on shares of Palo Alto Networks in a report on Wednesday. HSBC dropped their target price on shares of Palo Alto Networks from $157.00 to $114.00 in a report on Thursday. Finally, Robert W. Baird set a $220.00 price target on Palo Alto Networks and gave the stock an “outperform” rating in a research note on Wednesday. Thirty-three 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.com, the company has an average rating of “Moderate Buy” and a consensus price target of $212.51.

Palo Alto Networks Stock Performance

Shares of Palo Alto Networks stock traded down $1.36 during trading hours on Thursday, reaching $150.99. 13,519,372 shares of the company were exchanged, compared to its average volume of 10,959,233. Palo Alto Networks has a 1 year low of $144.15 and a 1 year high of $223.61. The firm has a market cap of $105.24 billion, a PE ratio of 83.42, a PEG ratio of 3.91 and a beta of 0.75. The stock’s fifty day moving average is $180.25 and its 200 day moving average is $191.93.

Palo Alto Networks (NASDAQ:PANW) last issued its quarterly 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. The company had revenue of $2.59 billion for the quarter, compared to the consensus estimate of $2.58 billion. Palo Alto Networks had a return on equity of 18.42% and a net margin of 12.96%.Palo Alto Networks’s revenue was up 14.9% on a year-over-year basis. During the same quarter in the prior 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. Research analysts expect that Palo Alto Networks will post 1.76 earnings per share for the current year.

Trending Headlines about Palo Alto Networks

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

• Positive Sentiment: Q2 results beat consensus — PANW posted stronger-than-expected revenue ($2.59B) and EPS (about $1.03), and raised annual revenue guidance, underscoring durable ARR and RPO strength that supports medium-term growth. Palo Alto Networks Q2 Press Release
• Positive Sentiment: Next‑Gen Security ARR and RPO metrics look healthy (ARR up ~33%; RPO up ~23%), suggesting subscription revenue momentum that can sustain growth after integration costs normalize. MarketBeat: PANW overview
• Neutral Sentiment: Management is pursuing M&A and AI/security tuck‑ins (including the Koi deal) to expand endpoint/agentic security — strategic for long-term platformization but likely to raise short-term integration expense. Zacks: PANW to Buy Koi
• Neutral Sentiment: Balance sheet remains solid (ample cash, manageable liabilities), giving PANW flexibility to integrate acquisitions and invest in AI/security even as margins are pressured near term. MarketBeat: PANW balance sheet note
• Negative Sentiment: Management signaled higher integration/deal costs and trimmed near‑term profit expectations; Reuters and other outlets report a reduced profit forecast that hit investor sentiment. This guided weakness is the primary driver of the selloff. Reuters: PANW cuts annual profit forecast
• Negative Sentiment: Analysts reacted quickly: multiple firms trimmed price targets and some ratings were softened — notably HSBC cut its PT sharply, and several other shops lowered targets, increasing near-term selling pressure. MarketScreener: HSBC adjusts PT to $114
• Negative Sentiment: Media coverage emphasized market reaction: CNBC, Reuters and others highlighted the stock’s sharp decline after guidance and integration-cost commentary, amplifying short-term volatility. CNBC: PANW shares sink as CEO defends strategy

Insider Buying and Selling

In related news, EVP Dipak Golechha sold 5,000 shares of the company’s stock in a transaction dated Tuesday, December 23rd. The shares were sold at an average price of $188.18, for a total value of $940,900.00. Following the completion of the sale, the executive vice president owned 155,119 shares of the company’s stock, valued at approximately $29,190,293.42. This represents a 3.12% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through this link. Also, CAO Josh D. Paul sold 800 shares of the firm’s stock in a transaction dated Friday, January 2nd. The stock was sold at an average price of $184.81, for a total transaction 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. The trade was a 1.71% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last three months, insiders sold 260,542 shares of company stock worth $49,910,995. 1.40% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Palo Alto Networks

Hedge funds and other institutional investors have recently made changes to their positions in the business. Klingman & Associates LLC grew its holdings in shares of Palo Alto Networks by 2.2% during the third quarter. Klingman & Associates LLC now owns 2,131 shares of the network technology company’s stock worth $434,000 after buying an additional 46 shares during the last quarter. Contravisory Investment Management Inc. lifted its position in Palo Alto Networks by 1.8% during the 3rd quarter. Contravisory Investment Management Inc. now owns 2,742 shares of the network technology company’s stock worth $558,000 after acquiring an additional 48 shares during the period. Mattern Wealth Management LLC grew its stake in shares of Palo Alto Networks by 2.9% in the 3rd quarter. Mattern Wealth Management LLC now owns 1,692 shares of the network technology company’s stock valued at $345,000 after purchasing an additional 48 shares during the last quarter. PTM Wealth Management LLC increased its holdings in shares of Palo Alto Networks by 4.0% in the third quarter. PTM Wealth Management LLC now owns 1,300 shares of the network technology company’s stock valued at $276,000 after purchasing an additional 50 shares during the period. Finally, Arlington Trust Co LLC increased its holdings in shares of Palo Alto Networks by 4.8% in the third quarter. Arlington Trust Co LLC now owns 1,088 shares of the network technology company’s stock valued at $222,000 after purchasing an additional 50 shares during the period. Institutional investors and hedge funds own 79.82% of the company’s stock.

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.