Along with many other parts of the market, cybersecurity stocks have taken a big tumble over recent months. This includes companies like Palo Alto Networks (NASDAQ: PANW) and CrowdStrike (NASDAQ: CRWD). These cybersecurity stalwarts are both down more than 15% in 2026 and down around 30% from their 52-week highs. Even larger declines are being seen at smaller players like Rubrik (NYSE: RBRK), with shares down around 50% in 2026.
Much of this is due to concerns roiling the broader software industry: artificial intelligence (AI) disruption. Some argue that AI tools can find and repair vulnerabilities better than traditional cybersecurity platforms. However, markets may be underweighting the idea that AI adoption can create new cybersecurity risks.
Boston Consulting Group, arguably the most respected consulting firm in the world, notes that AI systems embedded in organizations are themselves becoming targets that bad actors can exploit. Meanwhile, only 5% of companies have increased their cyber spending to combat AI threats, and 70% of organizations struggle to attract talent that can handle these risks. This provides support for the idea of cybersecurity becoming more important, not less.
Insider trading activity across cybersecurity stocks paints an interesting picture for investors amid this sell-off.
PANW CEO Ups Stake Big-Time as Shares Tank
In late March, Palo Alto Networks CEO Nikesh Arora purchased just under $10 million worth of his company’s stock. He made this purchase at an average price near $147. The stock rallied the next trading day by 5% as investors reacted to this bullish signal.
Given the precipitous decline in PANW, Nikesh evidently took the opportunity to buy on what he sees as a dip in the stock. Despite the market rocking shares, Palo Alto has continued to deliver strong financial performance. The company has posted revenues that are above or in line with expectations in each of its last four earnings reports. It has also posted significant beats on adjusted earnings per share.
Notably, the last 12 months' revenue growth sits between 15% and 16%. This marks a moderate acceleration versus 14% growth over the same 12-month period in 2025.
Additionally, the company’s operating margin increased by 190 basis points in its latest quarter to 30.3%.
Palo Alto has pushed back on AI disruption fears when it comes to cybersecurity. In its last earnings call, Arora said he was “confused why the market is treating AI as a threat.”
He went on to say, “As enterprises start putting more critical functionality in the hands of AI, they will want control of AI agents or of their AI infrastructure, and that requires more security. So, I think generally it's a positive trend towards more security adoption.”
These statements provide clear rationale for Arora’s large purchase, which increased his direct ownership in PANW by almost 25%. They also align well with the implications of Boston Consulting Group’s research.
CRWD and RBRK Sales: Red Flags or Business as Usual?
On the other hand, it may alarm investors to see insider selling at both CrowdStrike and Rubrik. In March, CrowdStrike insiders from CEO George Kurtz to President Michael Sentonas sold a combined $28.1 million worth of CWRD shares. Meanwhile, Rubrik insiders like director John Thompson and Chief Financial Officer Choudary Kiran Kumar sold around $6.6 million worth of stock.
These moves would seem to push back on the bullish signal provided by Arora at Palo Alto. However, all of these sales came with mitigating circumstances and thus don’t provide bearish signals. This includes Thompson's sales, which came under a predetermined 10b5-1 plan. Thompson had to plan these sales significantly in advance of when they took place. Thus, they indicate that Thompson is looking for liquidity rather than being pessimistic on RBRK.
All the other sales across both companies were formalities, including remarks that show this was the case. This line sits at the bottom of every CRWD sale in March: “All reported sales were made to cover tax withholdings due on vesting of restricted stock unit (RSUs) awards, as required under the Issuer's administrative policies.” The filing from RBRK’s Choudary Kiran Kumar includes a similar line.
Insiders had to make these sales to pay tax obligations incurred after the vesting of RSUs, a form of income. Thus, they do not provide bearish signals regarding either stock.
Bullish Insider Buys Still Require Patience
Overall, the purchase of PANW shares by its CEO is a clear bullish signal for the stock. With much of the cybersecurity industry affected by the same fears driving a decline in PANW, it is also a somewhat bullish signal for the industry. Due to the reasons discussed, sales of CRWD and RBRK do not push back on this signal.
Still, it is important to note that insider purchases may not quickly translate into a change in sentiment. Nike’s (NYSE: NKE) CEO purchased $1 million worth of shares at the end of 2025 near $61. Despite spiking immediately after this purchase, NKE stock has fallen to below $55 since.
Where Should You Invest $1,000 Right Now?
Before you make your next trade, you'll want to hear this.
MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis.
Our team has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and none of the big name stocks were on the list.
They believe these five stocks are the five best companies for investors to buy now...
The article "3 Cybersecurity Stocks Where Insiders Are Making Big Moves" first appeared on MarketBeat.
