Shortly after the opening bell, 25 shares of Palo Alto Networks will be sold at around $315.50, reducing Jim Cramer’s Charitable Trust’s ownership to 275 shares and decreasing its weighting in the portfolio to 2.67%. Analysts at Morgan Stanley have a positive outlook on Palo Alto Networks leading up to earnings, citing conservative estimates and strong deal momentum, which may result in a bigger-than-normal billings beat. The company’s involvement in helping UnitedHealth Group with a major hack this year has also been noted. Despite Morgan Stanley’s cautious approach in the previous quarter, their current call has inspired confidence in the stock. The trust has added to its position in Palo Alto Networks twice since a sell-off in February, with an average purchase price of around $283 per share. Despite feeling bullish going into earnings, a small portion of the position is being sold to take profits and the rating has been moved back to 2 due to the stock’s recent strong performance.
Palo Alto Networks’ stock has climbed more than 17% since April 4 and is up approximately 5% over the past three sessions alone. An announcement of a deal to buy the cloud security software assets from IBM has further boosted investor confidence, with many analysts viewing the move positively. Morgan Stanley believes this deal will benefit Palo Alto Networks in multiple ways, helping to accelerate market share in security analytics and align with the company’s “platformization” strategy following its February earnings report. The trust is set to realize a gain of 77% on stock purchased in February 2023, indicating a successful investment.
Subscribers to the CNBC Investing Club with Jim Cramer receive trade alerts before Jim makes a trade. Jim adheres to a waiting period of either 45 minutes or 72 hours after a trade alert, depending on whether he has discussed the stock on CNBC TV. The information provided by the investing club is subject to terms and conditions, privacy policy, and disclaimer, and does not create a fiduciary obligation or guarantee specific outcomes or profits. The trust’s ownership of Palo Alto Networks has been carefully managed, with adjustments made based on market conditions and analysis by analysts such as Morgan Stanley.
The positive outlook for Palo Alto Networks leading up to earnings has been fueled by factors such as conservative estimates, strong deal momentum, and the company’s involvement in helping UnitedHealth Group with a major hack. Despite a previous sell-off in February, the trust has added to its position in Palo Alto Networks twice, resulting in an average purchase price of around $283 per share. The recent announcement of a deal to acquire cloud security software assets from IBM has further strengthened investor confidence, with many analysts viewing the move as beneficial for Palo Alto Networks.
While feeling bullish going into earnings, the trust has decided to sell a portion of its position in Palo Alto Networks to take profits and adjust its rating back to 2 due to the stock’s recent strong performance. Despite this adjustment, the trust remains positive about the stock’s potential moving forward and has successfully managed its investment in Palo Alto Networks to realize a gain of 77% on stock purchased in February 2023. Subscribers to the CNBC Investing Club with Jim Cramer receive trade alerts before Jim makes a trade, and the trust carefully follows a waiting period after issuing these alerts to execute trades, ensuring a strategic and informed approach to managing its portfolio.
