Palo Alto Networks is flat in its first day of trading following a 3-for-1 stock split. Shares gained 79 cents when the Nasdaq opened for trading Wednesday but quickly moved into negative territory along with the rest of the U.S. markets.
Under the split, shareholders of record as of Sept. 6 received an additional two shares in the form of a dividend for each share held. The additional shares were distributed after the close of trading on Sept. 13.
|PANW||PALO ALTO NETWORKS INC.||231.90||+5.11||+2.25%|
"Because the market price of our stock has increased significantly since our initial public offering, the stock split will enable employees to acquire more whole shares of our stock through equity awards and more easily participate in our employee stock purchase plan, the cybersecurity giant wrote in an FAQ. "In addition, the stock split may make our stock more accessible to a broader base of investors."
The cybersecurity provider went public at $42 per share and jumped 31% as trading opened on July 20, 2012.
Palo Alto's board approved the stock split in August.
In its fiscal fourth quarter of 2022, the company reported net income of $3.3 million, or 3 cents per share, compared with a net loss of $119.3 million, or $1.23 per share, for the same period a year ago.
Revenue for the quarter ended July 31 grew 27% year over year to $1.6 billion, compared with total revenue of $1.2 billion for the fiscal fourth quarter 2021.
Looking ahead, Palo Alto Networks is forecasting total revenue for the first quarter of 2023 in the range of $1.535 billion to $1.555 billion, representing year-over-year growth of between 23% and 25%, and earnings per share in the range of $2.03 to $2.06 based on 108 million to 110 million shares outstanding.
As for the fiscal year 2023, revenue is expected to be within the range of $6.85 billion to $6.90 billion, representing year-over-year growth of 25%, and earnings per share are expected to range between $9.40 to $9.50 based on 111 million to 113 million shares outstanding.
Palo Alto Networks is the latest company to recently undergo a stock split, following Tesla, Google parent Alphabet, Amazon, Shopify and GameStop.
As of the time of publication, shares of Palo Alto Networks have fallen more than 66% year to date.