PANW stock: buy or sell?

PANW stock price: $204.56 0.39% At close on August 22nd, 2019

Updated on:
August 22nd, 2019

2

Shares of Palo Alto Networks closed today at $204.56 and grew a tiny 0.39%. On Friday PANW collapsed a frightening -7.70%. Thursday was the third climbing day in a row, gaining 3.28%.

Palo Alto Networks, Inc. provides security platform solutions worldwide. Its platform includes Next-Generation Firewall that delivers application, user, and content visibility and control, as well as protection against network-based cyber threats; Advanced Endpoint Protection, which prevents cyber-attacks that exploit software vulnerabilities on various fixed, mobile, and virtual endpoints and servers; and Threat Intelligence Cloud, which offers central intelligence capabilities, security for software as a service applications, and automated delivery of preventative measures against cyber-attacks.

Should I buy PANW stock?

You can't be a successful trader if you don't follow a methodolgy or system that assist you in choosing companies and the correct market timing. That's why is so important to define your own trading plan that matches with your character as inversor. At Stocks2.com, we use very simple but trusted and powerful trend following trading strategies. Simple things usually work the best.

Currently, Palo Alto Networks stock doesn't match any of these trading strategies, so our recommendation is not to buy.

Buy setupElegible
New all-time highNo
New 52 week highNo
Price crossing up 200d MANo
100d MA crossing up 200d MANo
This is not a selling recommendation at all, just it's not the best moment to buy if you follow any of these trading strategies.

Is Palo Alto Networks stock a buy?

Everyday, hundreds of stock ratings are published by financial analysts to indicate a particular stock's attractiveness. At Stocks2.com, we collected 15 ratings published for PANW stock in the last month.

The general sentiment of these ratings is bullish for PANW stock, with 13 positive ratings.
Is PANW a good stock to buy?
DateAnalyst / BrokerPrevious ratingCurrent rating
2019-8-20Bank of American/aBuy
2019-8-14Robert W. Bairdn/aBuy
2019-7-11Robert W. BairdBuyAverage
2019-5-30Wells Fargo & Con/aOutperform
2019-5-30Raymond Jamesn/aOutperform
2019-5-30JPMorgan Chase & Co.n/aOverweight
2019-5-30Jefferies Financial Groupn/aBuy
2019-5-30Deutsche Bankn/aBuy
2019-5-30Credit Suisse Groupn/aUnderperform
2019-5-30Barclaysn/aOverweight
2019-3-26MizuhoBuyBuy
2019-2-27Wells Fargo & CoOutperformOutperform
2019-2-27Wells Fargo & CoOutperformOutperform
2019-2-27Wedbushn/aOutperform
2019-2-27Stifel Nicolausn/aBuy

PANW stock analysis

Daily outlook

Palo Alto Networks grew a tiny 0.39% and closed at $204.56.

Shares of Palo Alto Networks ended today at $204.56 and grew a tiny 0.39%. In the last 6 days when PANW stock price broke down the SMA200d line, it slid $-10.05 per share (-4.68%). PANW marked a lower low and a lower high in the short term, defining a downward trend. Climbing above $223.66 would break this short term down trend and open possibilities for reversing this situation. Since last April when SMA100d and SMA200d crossed up, PANW price slipped $-41.37 per share (-16.82%).

PANW stock chart (daily)

Weekly outlook

After sliding a hair-raising -7.99% in a week last week, Palo Alto Networks closed this week at $204.56 and escalated a decent 2.65%.

Far behind is the all-time high Palo Alto Networks recorded late February and since then the price is -21.51% below that top. Since last week, when PANW stock price broke down the 40-weeks moving avarage line, it slid $-10.63 per share (-4.94%). Trading stocks that are below the 40-weeks (that is, 200-days) moving average line is not recommended by many experts, as it indicates that the stock has not enough institutional support. Since SMA20w and SMA40w crossed up early April, PANW price slid a -14.36%.

PANW stock chart (weekly)

PANW stock price history

PANW IPO was on July 20th, 2012 at $55.15 per share1. Since then, PANW stock surged a 270.90%, with an average of 38.70% per year. If you had invested right after PANW's IPO a $1,000 in PANW stock in 2012, it would worth $2,709.00 today.

1: Adjusted price after possible price splits or reverse-splits.

PANW stock historical price chart

PANW stock reached all-time highs on February with a price of $260.63.

PANW stock price target is $275.90

Predicting the price evolution of a stock or any financial instrument in a reliable and repeatable way is probably impossible. However, banks and other financial institutions analysts, with the help of lots of data and algorithms do their best to predict the stock prices movement. We do not recommend to follow these stock price predictions without a critical thinking from your side, as their accuracy is usually low. For the last month we found 14 price targets for Palo Alto Networks stock:
PANW stock price predictions
DateAnalyst / BrokerActionPrevious targetCurrent targetDiff
2019-8-20Bank of AmericaReiterates$307.00$275.00-10.4%
2019-8-14Robert W. BairdReiteratesn/a$275.00-
2019-7-11Robert W. BairdReiteratesn/a$275.00-
2019-5-30Wells Fargo & CoLowers Target$325.00$300.00-7.7%
2019-5-30Raymond JamesLowers Target$270.00$260.00-3.7%
2019-5-30JPMorgan Chase & Co.Lowers Target$293.00$270.00-7.8%
2019-5-30Jefferies Financial GroupLowers Target$296.00$275.00-7.1%
2019-5-30Deutsche BankReiterates$305.00$275.00-9.8%
2019-5-30Credit Suisse GroupReiterates$190.00$185.00-2.6%
2019-5-30BarclaysReiterates$303.00$242.00-20.1%
2019-2-27Wells Fargo & CoReiterates$275.00$325.0018.2%
2019-2-27Wells Fargo & CoRaises Target$275.00$325.0018.2%
2019-2-27WedbushReiterates$265.00$300.0013.2%
2019-2-27Stifel NicolausReiterates$240.00$280.0016.7%
(in average)$278.70$275.90-1.0%
Moving in a range from $325.00 and $185.00, the price forecast for Palo Alto Networks stock is $275.90. In average, analysts' outlook on PANW price forecast is stable from previous estimations.

Financials and fundamental analysis

Earnings date and Earnings per Share

Palo Alto Networks reported astounding results for 2019-Q1 on February. Palo Alto Networks rocketed Earnings per Share (EPS) by 400.00%, beating analysts estimates of $0.05. Palo Alto Networks posted $0.25.
PANW earnings date and EPS evolution
QuarterReporting dateEstimated EPSActual EPSSurprise
2017-Q2-n/a-0.67n/a
2017-Q3-n/a-0.42n/a
2017-Q42017-11-200.690.747.2%
2018-Q12018-02-26-0.21-0.4n/a
2018-Q22018-06-04-0.13-0.05n/a
2018-Q32018-09-060.060.18200.0%
2018-Q42018-11-29-0.03-0.01n/a
2019-Q12019-02-260.050.25400.0%
2019-Q2-n/an/an/a
2019-Q3-n/an/an/a

Annual financial results

Compared to 2018, last anual turnover report draw a tight movement of 0.14% to $2,273.10 million dollars. Aligned with this, its income margin (compared to sales) stayed steady to -6.51%, that is $-147.90 million.

Palo Alto Networks presents anual results in July, and to evaluate its evolution since then, we estimate annual sales and income figures by adding results from the last 4 quarters. This is called TTM (or Twelve Trailing Months). So, Palo Alto Networks TTM sales up to January 2019 were $2,592.40 and income $-89.90 million dollars. When comparing this TTM figures with the last reported annuality, we can esteem Palo Alto Networks business evolution since July 2018: Annual turnover up to January, compared to lastest yearly report, climbed a dazzling 14.05%. However, profit margin (net income/sales) grew at -6.51%.

PANW annual Sales and Income evolution
YearSalesYoYIncome/(margin)YoY
2014$598 M-$-226.45 M-37.9%-
2014$598 M0.00%$-226.45 M-37.9%0.00%
2015$928 M55.15%$-164.98 M-17.8%-27.15%
2015$928 M0.00%$-164.98 M-17.8%0.00%
2016$1,380 M48.70%$-192.70 M-14.0%16.80%
2016$1,379 M-0.11%$-192.70 M-14.0%0.00%
2017$1,760 M27.68%$-216.60 M-12.3%12.40%
2017$1,762 M0.09%$-216.60 M-12.3%0.00%
2018$2,270 M28.86%$-147.90 M-6.5%-31.72%
2018$2,273 M0.14%$-147.90 M-6.5%0.00%
TTM $2,592 M14.05%$-89.90 M-3.5%-39.22%

Quarterly financial results

Palo Alto Networks posted $711.20 million in revenues for 2019-Q1, a 8.41% improvement compared to previous quarter. Reported quarter income marked $-2.60 million with a profit margin of -0.37%. Profit margin rose a 5.47% compared to previous quarter when profit margin was -5.84%. When comparing sales to same quarter last year, Palo Alto Networks sales marked an exceptional increase and boosted a 31.12%.
PANW quarterly Sales and Income evolution
QuarterSales1QoQ2Income1/(margin)QoQ2
2017-Q2$432 M-$-60.90 M-14.1%-
2017-Q3$509 M17.90%$-38.20 M-7.5%-37.27%
2017-Q4$506 M-0.71%$-64.00 M-12.7%67.54%
2018-Q1$542 M7.30%$-34.90 M-6.4%-45.47%
2018-Q2$567 M4.55%$-46.70 M-8.2%33.81%
2018-Q3$658 M16.05%$-2.30 M-0.3%-95.07%
2018-Q4$656 M-0.32%$-38.30 M-5.8%1,565.22%
2019-Q1$711 M8.41%$-2.60 M-0.4%-93.21%

Palo Alto Networks ownership

When you are planning to invest in a stock, it's always worth to check its ownership structure.

Management staff in all public traded companies that hold equity is required to report every transaction to the SEC. For Palo Alto Networks, 2.79% of all outstanding shares are owned by its staff.

Bearish positions for PANW stock account 0.00%, no big difference from last month.

For a better context understanding, the following table shows ownership data compared to other related companies:

PANWCHKPCSCOFEYEFFIV
Market cap$19.3 B$16.9 B$206.2 B$2.7 B$7.7 B
Total shares94.3 M155.4 M4,280.0 M203.2 M59.7 M
Float shares93.5 M115.6 M4,280.0 M205.9 M59.9 M
  - Institutional holdings (%)83.9%75.5%77.3%75.8%105.4%
  - Insider holdings (%)2.8%21.9%0.1%2.5%0.5%
Shares in short selling0.0%0.0%0.0%0.0%0.0%

PANW summary

Thursday, August 22nd, 2019
Open$205.00
Close$204.56
Day range$202.35 - $206.60
Previous close$203.77
Session gain0.39%
Average true range$7.48
50d mov avg$212.99
100d mov avg$221.03
200d mov avg$213.38
Daily patternlb06a
Weekly pattern lt03a

Palo Alto Networks performance

Performance as an absolute value is never valid if it's not benchmarked against competitors or related stocks in the industry. For Palo Alto Networks, the benchmark is made against Check Point Software Technologies, Cisco Systems, FireEye, F5 Networks, Fortinet, HP, International Business Machines, Intel and Juniper Networks.
Stock3m6m12m
PANWPalo Alto Network...-5.41%-11.10%-9.26%
CHKPCheck Point Softw...-4.34%-11.23%-5.84%
CSCOCisco Systems-10.83%-2.63%6.88%
FEYEFireEye-5.99%-19.98%-17.53%
FFIVF5 Networks-5.54%-24.83%-31.06%
FTNTFortinet5.16%-5.81%1.69%
HPQHP-4.73%-18.93%-19.28%
IBMInternational Bus...2.68%-1.29%-3.58%
INTCIntel5.67%-9.73%0.69%
JNPRJuniper Networks-4.84%-12.57%-14.49%

Palo Alto Networks competitors

We selected a few stocks to conform a list of Palo Alto Networks competitors to review if you are interested in investing in PANW:

Latest PANW stock news