Palo Alto Networks PANW Stock Split
Palo Alto Networks PANW Stock Split: Will the Stock Split Happen in 2023? Read on for information
Palo Alto Networks is a global cybersecurity provider. Co.’s cybersecurity platforms and services help secure enterprise users, networks, clouds, and endpoints by delivering cybersecurity backed by artificial intelligence and automation. Co.’s network security platform, which includes Co.’s Machine Learning-Powered Next-Generation Firewalls, is available in a number of form factors, including physical, virtual, and containerized appliances, as well as a cloud-delivered service.
Palo Alto Networks PANW Stock Split History
Palo Alto Networks (PANW) has only had 1 stock split in its history. The split occurred on 14th September 2022. As a result of the 3 for 1 split, the shareholder now possessed 3 shares in PANW instead of the pre-split 1 share. A 1000 shareholding, for instance, before the split, became a 3000-share position after the split.
PANW Stock Split Reasons
Palo Alto acknowledged the reason for the split was that its stock price “had increased significantly” since its initial public offering in 2012 as can be seen by the graph attached.
In a statement, Palo Alto said: “The stock split will enable employees to acquire more whole shares of our stock through equity awards and more easily participate in our employee stock purchase plan. In addition, the stock split may make our stock more accessible to a broader base of investors.”
Palo Alto Networks Stock Price Movement Analysis
When a corporation divides its shares, as Palo Alto Networks did, the market capitalization before and after the split stays the same, giving the shareholder additional shares but at a lesser value per share. Nonetheless, a stock with a cheaper price per share frequently attracts a larger spectrum of purchasers. If the share price increases as a result of the increased demand, the total market capitalization increases after the split. Yet, depending on the underlying principles of the firm, this does not always occur.
Share price prior to the split: $570
Share price post the split: $130
What’s ahead for PANW?
The fourth quarter results, which featured GAAP profitability for the first time in four years, thrilled Palo Alto Networks chairman and CEO Nikesh Arora. He said that the results were being driven by “next-generation security growth,” which was being led by the company’s “fast pace of innovation and great sales execution.” As we consolidate and streamline our clients’ security infrastructures, our integrated three-platform strategy “continues to drive major deal momentum as cybersecurity posture remains key,” he added.
In the fiscal first quarter of 2023, the business projected total billings to be between $1.68 billion and $1.70 billion, representing a rise of 23% to 25% year over year.
In contrast, it forecasted total billings for the fiscal year 2023 to be between $8.95 billion and $9.05 billion. This would indicate an increase of up to 21% over the previous year.
Moreover, total revenue may vary from $6.85 billion to $6.90 billion. This would indicate a 25% increase over the previous year.
Currently, there are no rumors of another stock split or other stock actions like that happening in the near future.
PANW Stock Split: Analysts’ Price Target
- Credit Suisse: Predicts a change of 26.11% upside change in the stock, they have upgraded their target from $225 to $235 while maintaining their rating of buy.
- Piper Sandler: Target has been increased from $220 to $240 which indicates a change of 28.79% from the current price.
- RBC Capital: A change of 15.91% from the current price to the target price of $216 is expected, the previous target was $200.
- Citi Group: Analysts at the Citi group have increased the price target from $195 to $220 which demonstrates an increase of 18.06% from the current prices of the company. The rating maintains at buy.
- Baird: Predicts a shift of 23.42% to the upside for the stock and has raised their target from $220 to $230 while keeping a buy recommendation.
- Morgan Stanley: This particular analyst has given the highest price target amongst all the analysts covering the stock, the target being $255 which is a massive 36.84% increase from the current price. This comes as an upgrade from the previous target of $240.
Note: Crowdwisdom360 collates Predictions and data from all over the net and has no in-house view on the likely trends in the Index or Individual Stocks. Please consult a registered investment advisor to guide you on your financial decisions.