Up around 21% over the last 6 months but substantial Director sell offs, some $8 - 12MM.
Any ideas why so many are bailing when the share price looks like it will keep growing?
Such is the level of share based compensation (SBC) in the US software industry that directors and their most valued subordinates are almost always selling shares, not least in order to pay the tax on options when they vest. They often literally have no choice. So I'd not pay much attention to director sales, while director purchases can be a very positive sign indeed, though, with SBC running so high across the board, most board members simply have to wait for the next round of options.
Instead, look carefully at the quality of the business and the price you are asked to pay for it. Analysts are universally bullish on PANW's prospects but most believe the name to be fully priced right now. If you think the US is headed for recession, you'll get a better price later in 2023. If the economy avoids recession AND the Fed eases rates back below 3%, you'll wish you had bought today. Or take a very long view, stop worrying about short term macro and start buying in small chunks to cost average - if you decide you like the name.
I hold but I'm all over cybersecurity with several other holdings, though PANW is my most successful, which you might see as a good sign, or wonder if the gains have been made - who knows?
