Palo Alto Networks shares surged 7.3% on Monday as Congresswoman Nancy Pelosi disclosed that she bought positions in the cybersecurity company. The shares gained another 5.6% in premarket trading Tuesday.
Pelosi purchased between $500,000 and $1M worth of call options in the Nikesh Arora-led company, according to a congressional trading form filed by Pelosi. The purchase was made on Feb. 12.
The 83-year-old Pelosi also disclosed a call option purchase worth between $100,000 and $250,000. The purchase was made on Feb. 21, the same day shares plummeted after the company lowered its full-year revenue and billings guidance.
Shares of other cybersecurity stocks rose on Monday, including CrowdStrike (CRWD), Zscaler (ZS) and Fortinet (FTNT).
After Palo Alto lowered its guidance, several Wall Street firms downgraded the company on concerns that the new change in strategy is likely to seriously hurt its business over the next year or more.
Separately on Monday, investment firm Susquehanna reiterated its Positive rating on Palo Alto Networks though it cut its price target following the company's strategy shift.