Analysts Mixed on Palo Alto Networks Stock After Earnings

The tech company issued a disappointing billings outlook

Digital Content Manager
May 21, 2024 at 10:05 AM
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Palo Alto Networks Inc (NASDAQ:PANW) reported a fiscal third-quarter earnings and revenue beat after yesterday's close, but the security slipped after also issuing a weaker-than-expected billings outlook. Shares are down 6.6% at $302.46 at last check, with the brokerage bunch doling out two price-target cuts and two hikes in response to the results.

Today's bear gap has the equity swinging to a year-to-date loss, but it still boasts a 31.2% year-over-year lead. Shares yesterday hit their highest level since February, while the 20-day moving average looks ready to contain additional losses. 

At the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), Palo Alto Networks stock's 50-day call/put volume ratio of 2.16 ranks higher than all but 1% of annual readings. This indicates options traders have been much more bullish than usual in the last 10 weeks.

It's also worth noting the stock's Schaeffer's Volatility Scorecard (SVS) stands at an 86 out of 100. This means PANW exceeded option traders' volatility expectations over the past 12 months.

Drilling down to today's options activity, 33,000 calls and 22,000 puts have already traded hands, which is 11 times the intraday average volume. Most active is the weekly 5/24 350-strike call.


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