Investment advisor OMC Financial Initiated a Position in Palo Alto Networks. Is the Stock a Buy?
Key Points
OMC Financial Services LTD bought 21,730 shares of Palo Alto Networks, an estimated $4.42 million trade based on average pricing for the quarter ended September 30, 2025.
The transaction represents a 1.64% change in 13F reportable assets under management.
Post-trade, the stake stands at 21,730 shares valued at $4.42 million.
The new position places Palo Alto Networks outside the fund’s top five holdings by value.
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What happened
Investment advisory company OMC Financial Services LTD disclosed a new equity position in Palo Alto Networks (NASDAQ:PANW), acquiring 21,730 shares during Q3 2025. The estimated value of the trade was $4.42 million, based on the stock's average price for Q3 2025.
The information was reported in a Form 13-F filed with the U.S. Securities and Exchange Commission on October 21, 2025.
What else to know
This was a new position. As of September 30, 2025, Palo Alto Networks represented 1.64% of the fund’s $269.47 million in U.S. equity holdings. The new position places Palo Alto Networks outside the fund’s top five holdings by value.
Top holdings for OMC Financial Services as of September 30, 2025 were:
- NVDA: $35.42 million (13.1% of AUM)
- AAPL: $30.76 million (11.4% of AUM)
- MA: $19.90 million (7.4% of AUM)
- V: $17.79 million (6.6% of AUM)
- MSFT: $12.49 million (4.6% of AUM)
As of October 20, 2025, shares of Palo Alto Networks were priced at $211.82, marking an 11.95% one-year gain, and underperforming the S&P 500 by 1.8 percentage points.
Company overview
| Metric | Value |
|---|---|
| Price (as of market close 2025-10-20) | $211.82 |
| Market Capitalization | $143.38 billion |
| Revenue (TTM) | $9.22 billion |
| Net Income (TTM) | $1.13 billion |
Company snapshot
Palo Alto Networks, Inc. is a leading provider of cybersecurity solutions, operating at global scale with a comprehensive portfolio of hardware, software, and cloud-based security offerings. Its strong presence among enterprise and government clients underpins its competitive position in the cybersecurity industry.
IMAGE SOURCE: GETTY IMAGES.
The company offers cybersecurity solutions including firewall appliances, security management software, cloud security, and a broad range of subscription-based threat prevention and analytics services.
Palo Alto Networks generates revenue through product sales, recurring subscriptions, and professional services, leveraging a mix of direct and channel partner distribution. It serves medium to large enterprises, service providers, and government entities across sectors such as financial services, healthcare, education, manufacturing, and telecommunications.
Foolish take
OMC Financial Services' move in Q3 to scoop up Palo Alto Networks stock is notable because it's not only a new position in the cybersecurity company, but it comes at a time when shares are expensive.
The stock's forward price-to-earnings ratio was around 50 after Palo Alto Networks reported earnings for its fiscal fourth quarter ended July 31. A contributing factor to OMC Financial's buy despite the high valuation could be the company's strong performance.
Palo Alto Networks ended its 2025 fiscal year with excellent 15% year-over-year revenue growth to $9.2 billion. The company expects double-digit sales growth to continue in fiscal 2026, forecasting revenue to reach around $10.5 billion.
Another contributing factor to OMC Financial's decision to buy now could be the rise of quantum computing. These devices use the properties of quantum mechanics to deliver computational power beyond the abilities of today's supercomputers. Why this matters is that quantum machines can hack through most of the cybersecurity on the planet.
Palo Alto Networks released a set of defenses against quantum computing attacks this year. The new capabilities could give it a competitive edge as the adoption of quantum devices ramps up in the coming years.
As a result, Palo Alto Networks is a solid long-term investment. Yet given its high valuation, it's ideal to wait for the stock to drop before deciding to buy.
Glossary
13F reportable assets: The total value of securities a fund must disclose quarterly to the SEC under Form 13F rules.
Assets under management (AUM): The total market value of investments managed on behalf of clients by a fund or firm.
Form 13-F: A quarterly SEC filing required from institutional investment managers to disclose their equity holdings.
Position: The amount of a particular security or asset owned by an investor or fund.
Stake: The ownership interest or share held in a company by an investor or fund.
Channel partner distribution: Selling products or services through third-party companies rather than directly to customers.
Firewall appliances: Hardware devices with software designed to protect computer networks from unauthorized access and cyber threats.
Subscription-based services: Services where customers pay recurring fees for ongoing access, often used in software and analytics.
Professional services: Consulting, implementation, or support services provided to help clients use products effectively.
TTM: The 12-month period ending with the most recent quarterly report.
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Robert Izquierdo has positions in Apple, Microsoft, Nvidia, and Palo Alto Networks. The Motley Fool has positions in and recommends Apple, Mastercard, Microsoft, Nvidia, and Visa. The Motley Fool recommends Palo Alto Networks and recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.
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