Connect with us

Hi, what are you looking for?

Jewish Business News

StartUps

Why Is Palo Alto Founder Nir Zuk Selling Shares?

Palo Alto security Nir Zuk

All seems to be well at cyber security company Palo Alto. Its recent earnings report was solid, the company received a few upgrades, so why did founder Nir Zuk sell 30, 000 shares on Thursday? The shares were sold at an average price of $126 and Zuk still owns a significant stake of 2, 695, 434 shares. Analysts at Northland Securities raised the price target from $120 to $135 with an outperform rating, and Barclays also upgraded the stock. Currently 23 analysts who cover Palo Alto rate it a Buy, two have a Strong Buy, and five analyst have a Hold rating.

Palo Alto beat Wall Street earnings estimates by 12 cents, and surpassed revenue targets, delivering $192 million, compared to the goal of $181 million. Revenue rose 50% on a year over year basis.

With the many high-profile security breaches, Palo Alto, a leader in the cyber security sector is likely to see increased demand. After such strong prospects and performance, why did Nir Zuk sell 30, 000 shares? First of all, that is a relatively small part of his position, secondly insiders sell for reasons separate from the stock’s performance (in fact, if stock rise, they often take gains), and investors don’t seem to be concerned, since the stock rose 1.6% on Monday. If investors and Wall Street don’t seem to be worried about a bit of insider selling, why should we worry?

Newsletter



Advertisement

You May Also Like

World News

In the 15th Nov 2015 edition of Israel’s good news, the highlights include:   ·         A new Israeli treatment brings hope to relapsed leukemia...

Entertainment

The Movie The Professional is what made Natalie Portman a Lolita.

Travel

After two decades without a rating system in Israel, at the end of 2012 an international tender for hotel rating was published.  Invited to place bids...

VC, Investments

You may not become a millionaire, but there is a lot to learn from George Soros.