Nicholas Company Inc. Lowers Stake in Palo Alto Networks by 6.2%

Nicholas Company Inc. has reduced its stake in shares of Palo Alto Networks, Inc. (NASDAQ: PANW) 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 Inc.’s holdings in Palo Alto Networks stands at approximately $54.66 million as of the close of the most recent quarter.

Other large investors have also adjusted their positions in Palo Alto Networks recently. For instance, Connor Clark & Lunn Investment Management Ltd. acquired a new stake in the company during the first quarter, valued at around $261,000. Strive Asset Management LLC increased its holdings by 16.6%, now owning 2,099 shares valued at $358,000 after buying an additional 299 shares. Meanwhile, Migdal Insurance & Financial Holdings Ltd. raised its stake by 25.3% in the second quarter, bringing its total to 205,053 shares worth $41.96 million after acquiring 41,392 shares.

Whipplewood Advisors LLC made a significant move, increasing its holdings by an astonishing 6,400%, now owning 130 shares valued at $27,000. Arkadios Wealth Advisors also raised its position by 9.2%, now holding 39,893 shares worth $8.16 million. Collectively, hedge funds and other institutional investors own 79.82% of Palo Alto Networks’ stock.

Insider Trading Activity

In other developments, insider trading has been notable at Palo Alto Networks. On September 23, 2023, Executive Vice President Dipak Golechha sold 5,000 shares at an average price of $204.19, totaling approximately $1.02 million. Post-sale, Golechha retains 96,135 shares, valued at around $19.63 million, reflecting a 4.94% decrease in his holdings.

Additionally, CEO Nikesh Arora sold a substantial 846,408 shares on the same day for an average price of $204.06, amounting to approximately $172.72 million. Following this transaction, Arora holds 275,013 shares valued at about $56.12 million, marking a dramatic 75.48% reduction in his ownership.

In total, insiders have sold 1,215,130 shares of Palo Alto Networks valued at approximately $243.41 million over the last quarter, with insiders now owning 2.50% of the company’s stock.

Palo Alto Networks Financial Performance

Palo Alto Networks’ stock opened at $220.24 recently. The company has a market capitalization of $147.32 billion, a price-to-earnings (P/E) ratio of 137.22, and a beta of 0.98.

The company reported its quarterly earnings on August 18, 2023, posting an earnings per share (EPS) of $0.95, exceeding the consensus estimate of $0.89 by $0.06. Revenue for the quarter reached $2.54 billion, surpassing expectations of $2.50 billion. Year-over-year, revenue increased by 15.8%, compared to $0.75 EPS from the same period last year.

For its fiscal year 2026, Palo Alto Networks has set guidance for $3.750-$3.850 EPS, with first-quarter projections of $0.880-$0.900 EPS. Analysts forecast that the company will achieve an EPS of $1.76 for the current year.

Palo Alto Networks specializes in cybersecurity solutions globally, offering firewall appliances, software, and comprehensive security management solutions. The company also provides subscription services that include threat prevention, malware protection, and data loss prevention, among other services.

For further updates on Palo Alto Networks and institutional holdings, interested parties can visit HoldingsChannel.com for the latest regulatory filings and insider trading information.