Key Executive at Palo Alto Networks (PANW) Sells $65M in Stock
Nir Zuk, co-founder and chief technology officer of Palo Alto Networks (PANW), recently sold a substantial amount of his shares in the cybersecurity company for $65.1 million. This move came following an SEC filing that revealed Zuk divested 168,000 shares of PANW between November 22 and November 25, at prices ranging from $383.45 to $395.91 per share. Before the sale, he exercised an option to purchase 1,509,057 shares at a lower price of $64.50 per share. Despite these transactions, Zuk still retains shares in Palo Alto Networks worth approximately $810.11 million.
The insider sale by Zuk follows Palo Alto Networks’ fiscal Q1 results, which were a mixed bag. While the company fell short of analysts’ sales expectations, it exceeded earnings estimates. Despite this, PANW raised its Fiscal 2025 guidance, with revenue expectations now between $9.12 billion and $9.17 billion, up from the previous range of $9.10 billion to $9.15 billion. Additionally, adjusted EPS is projected to be between $6.26 and $6.39, an increase from the prior guidance of $6.18 to $6.31.
It’s important to note that Zuk is not the only insider reducing their stake in the company. Over the last three months, corporate insiders collectively sold $68.5 million worth of PANW stock. TipRanks’ Insider Trading Activity Tool indicates a Negative insider confidence signal for the stock, emphasizing the importance of monitoring insider transactions to gauge confidence levels in a company.
For investors considering PANW stock, Wall Street analysts have a Strong Buy consensus rating for the company, with 31 Buys, four Holds, and one Sell assigned in the last three months. With an average price target of $424.15, implying a 7% upside potential, PANW shares have gained 34.43% year-to-date.
Overall, staying informed about insider transactions and analyst recommendations can help investors make informed decisions about whether Palo Alto Networks is a good buy for their investment portfolios.
