10 Stocks with Insanely High PE Ratios Insiders Are Selling

6. Palo Alto Networks, Inc. (NASDAQ:PANW)

P/E Ratio: 106.28

Insider Transaction: -41.03%

A global cybersecurity firm, Palo Alto Networks, Inc. (NASDAQ:PANW) offers network security and threat intelligence solutions. Along with Fortinet, Check Point, and Cisco, there is also tough competition for the company. However, Palo Alto Networks, Inc. (NASDAQ:PANW) maintains a strong position through integrated platforms like Prisma and Cortex. The company uses AI-driven analytics and recurring subscription revenue models to gain an upward momentum. Demand for zero-trust architecture and cloud-native security tools also allows for international expansion opportunities in enterprise markets.

Palo Alto Networks, Inc. (NASDAQ:PANW) achieved revenue of $2.26 billion in the fourth quarter of 2024, beating the anticipated value by 0.9%. For 2024, the company has surpassed its midpoint guidance of $9.15 billion. However, some users find the pricing for the services a significant hurdle. In particular, they consider the price too high for features like Prisma Access and Cortex XDR. While this may affect the revenue stream for the company in 2025, other challenges like high costs, complex deployment and configuration, and the need for ongoing maintenance and patching also have a notable impact on the company’s growth in the sector.

Palo Alto Networks, Inc. (NASDAQ:PANW)’s P/E ratio stands high at 106.28. One of the highest in our selection, the value reflects sky-high market expectations. Meanwhile, insider selling is increasing by 41.03%, projecting a less optimistic internal mindset towards the market and the company, and signals caution.