Palo Alto Networks reported mixed fiscal third-quarter results
Software stock Palo Alto Networks Inc (NASDAQ:PANW) is slipping today, down 6.2% to trade at $182.52 at last glance, after the company's fiscal third-quarter results. Profits beat estimates, while revenue came in line with expectations, and gross margin fell more than anticipated. The firm also predicted a strong current quarter and hiked its full-year guidance.
No fewer than four analysts cut their price targets, including Northland Capital to $177 from $210, though Wells Fargo threw in a price-target hike to $235 from $225 and reiterated its "overweight" rating.
On the charts, PANW has had a volatile year so far, trading as high as $208.39 on Feb. 19 and as low as $144.15 on Apr. 7. Today, the shares are trading at their lowest level since late April, and testing their year-to-date breakeven level.
A short-term drop could've already been in the cards for Palo Alto Networks stock, per its 14-day relative strength index (RSI) of 70.9, which sits in "overbought" territory.
So far today, PANW has seen 72,000 calls and 48,000 puts traded so far in the options pits, which is 10 times the overall options volume typically seen at this point. The weekly 5/23 180-strike put is the most popular, with new positions being bought to open there.