Nicholas Company Inc. has reduced its stake in Palo Alto Networks, Inc. by 6.2% during the second quarter of 2023. According to Holdings Channel, the firm now holds 267,117 shares after selling 17,735 shares in this period. The value of Nicholas Company’s holdings in the cybersecurity firm stands at approximately $54.66 million.
Several other institutional investors have made adjustments to their positions in Palo Alto Networks recently. For instance, Connor Clark & Lunn Investment Management Ltd. acquired a new stake valued at around $261,000 in the first quarter. Strive Asset Management LLC increased its holdings by 16.6%, bringing its total to 2,099 shares worth $358,000 after purchasing an additional 299 shares. Migdal Insurance & Financial Holdings Ltd. raised its stake by 25.3%, now owning 205,053 shares valued at $41.96 million after acquiring 41,392 shares.
Whipplewood Advisors LLC saw a dramatic increase in its holdings, up 6,400%, to own 130 shares valued at $27,000 following the purchase of 128 shares. Arkadios Wealth Advisors also increased its position by 9.2%, acquiring an additional 3,351 shares and raising its total to 39,893 shares worth about $8.16 million. Overall, institutional investors hold 79.82% of the company’s stock.
Insider Transactions Raise Eyebrows
In related news, executive vice president Dipak Golechha sold 5,000 shares of Palo Alto Networks on September 23, 2023, at an average price of $204.19, amounting to $1,020,950. Post-sale, Golechha retains 96,135 shares valued at approximately $19.63 million, marking a 4.94% decrease in his holdings.
On the same day, CEO Nikesh Arora sold 846,408 shares for a total of $172.72 million, also at an average price of $204.06. Following this transaction, Arora holds 275,013 shares, valued at about $56.12 million, reflecting a significant 75.48% reduction in his equity stake. Over the past quarter, insiders have sold 1,215,130 shares valued at approximately $243.41 million. Insiders now own 2.50% of the company’s stock.
Palo Alto Networks’ Market Performance
Palo Alto Networks’ stock opened at $220.24 on Friday, with a 50-day simple moving average of $204.51 and a 200-day average of $194.30. The company boasts a market capitalization of $147.32 billion, a price-to-earnings ratio of 137.22, and a price-to-earnings-growth ratio of 5.24. Over the past year, the stock has fluctuated between a low of $144.15 and a high of $223.61.
The firm recently reported its quarterly earnings on August 18, 2023, revealing earnings per share (EPS) of $0.95, surpassing the consensus estimate of $0.89 by $0.06. Revenue for the quarter reached $2.54 billion, exceeding expectations of $2.50 billion. The company achieved a net margin of 12.30% and a return on equity of 17.66%, with year-over-year revenue growth of 15.8%. For fiscal year 2026, Palo Alto Networks has guided an EPS between $3.750 and $3.850, with first quarter guidance set at $0.880 to $0.900.
As analysts continue to assess Palo Alto Networks’ performance, expectations suggest that the company will report an EPS of 1.76 for the current year. The firm remains a significant player in the global cybersecurity landscape, providing a range of solutions including firewall appliances, security management, and various subscription services focused on threat prevention and data security.
