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William Jenkins Jr., the President of Palo Alto Networks Inc. (NASDAQ:PANW), a prominent player in the software industry with a market capitalization of $131.4 billion, recently sold shares worth approximately $493,370, according to a filing with the Securities and Exchange Commission. The transactions, executed on February 19, involved the sale of 2,401 shares of common stock at prices ranging from $203.737 to $208.24 per share, near the company’s 52-week high of $208.39. According to InvestingPro analysis, the stock is currently trading above its Fair Value.
Following these sales, Jenkins holds 17,735 shares directly. The sales were made under a prearranged 10b5-1 trading plan, which allows insiders to set up a predetermined schedule for selling company stock. Additionally, Jenkins deferred 3,828 shares into phantom stock as part of Palo Alto Networks’ Deferred Compensation Plan, with the shares set to be released on or about January 31, 2027. The company maintains a GREAT financial health score according to InvestingPro, which offers comprehensive analysis through its Pro Research Report, including 15+ additional key insights about PANW’s valuation and growth prospects.
In other recent news, Palo Alto Networks reported strong second fiscal quarter results, leading several analyst firms to adjust their price targets for the company. Susquehanna raised its target to $230, citing the company’s solid performance and raised full-year outlook. DA Davidson also increased its target to $225, maintaining a Buy rating, and noted that Palo Alto Networks met or exceeded key financial metrics despite a slight miss in Free Cash Flow expectations. Piper Sandler, while increasing its target to $200, maintained a Neutral rating due to mixed outcomes in the company’s financial health, including a slowdown in bookings growth.
Stifel reaffirmed its $225 target with a Buy rating, highlighting the company’s robust year-over-year growth in several key areas, including a 37% increase in Next-Generation Security Annual Recurring Revenue (NGS ARR). Needham analysts raised their target to $230 and reiterated a Buy rating, noting the company’s significant platformization deals and strong performance in the EMEA and APAC regions. Palo Alto Networks has extended its Free Cash Flow margin targets, aiming for 37-38% or higher through FY27, driven by operational efficiencies and the impact of AI.
The company also reported a 26% year-over-year growth in Remaining Performance Obligations (RPO), reaching $13 billion. Despite positive financial results, some analysts noted areas where expectations were not fully met, such as the lack of upward revision in NGS ARR and RPO guidance. Overall, the company’s focus on platformization and strategic growth initiatives continues to be a central theme in its recent developments.
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