Zacks Investment Research downgraded shares of Fortinet, Inc. (NASDAQ:FTNT) from a buy rating to a hold rating in a research report released on Tuesday, July 4th.
According to Zacks, “Fortinet is a provider of network security appliances and Unified Threat Management (UTM) network security solutions. The stock has outperformed the broader market on YTD basis. Despite persistent macro uncertainties, management seems to be positive on the back of a healthy network security market, solid product line-up and investment plans. Going ahead, we believe that the company’s strategy of focusing on selling subscription-based services will enable it to generate more stable revenues and help in expanding margins. Furthermore, acquisitions are a major positive for Fortinet as these help it to strengthen its product portfolio and capabilities, thereby boosting its top-line performance. Nonetheless, competition from key network security players such as Cisco Systems, Check Point, Juniper and Palo Alto Networks, remains a concern.”
FTNT has been the subject of a number of other research reports. Oppenheimer Holdings, Inc. reiterated an outperform rating and issued a $45.00 target price on shares of Fortinet in a research report on Monday, April 17th. Royal Bank Of Canada increased their target price on shares of Fortinet from $35.00 to $41.00 and gave the company an outperform rating in a research report on Friday, April 28th. ValuEngine upgraded shares of Fortinet from a sell rating to a hold rating in a research report on Friday, June 2nd. Dougherty & Co raised their price objective on shares of Fortinet from $38.00 to $46.00 and gave the company a buy rating in a research report on Friday, April 21st. Finally, Monness Crespi & Hardt started coverage on shares of Fortinet in a research report on Wednesday, June 14th. They set a buy rating and a $45.00 price objective for the company. One equities research analyst has rated the stock with a sell rating, ten have issued a hold rating, twenty have issued a buy rating and one has assigned a strong buy rating to the company’s stock. Fortinet presently has an average rating of Buy and an average price target of $41.56.
Shares of Fortinet (NASDAQ FTNT) traded down 2.47% on Tuesday, hitting $37.47. 2,306,183 shares of the company’s stock were exchanged. Fortinet has a 12-month low of $28.50 and a 12-month high of $41.56. The company’s 50-day moving average price is $38.66 and its 200 day moving average price is $37.62. The stock has a market cap of $6.58 billion, a price-to-earnings ratio of 102.66 and a beta of 1.02.
Fortinet (NASDAQ:FTNT) last released its quarterly earnings results on Wednesday, July 26th. The software maker reported $0.27 EPS for the quarter, topping the consensus estimate of $0.20 by $0.07. The business had revenue of $363.50 million during the quarter, compared to analyst estimates of $361.05 million. Fortinet had a net margin of 4.71% and a return on equity of 9.36%. The company’s quarterly revenue was up 16.7% on a year-over-year basis. During the same quarter in the prior year, the firm earned $0.14 earnings per share. On average, equities analysts predict that Fortinet will post $0.95 earnings per share for the current fiscal year.
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Fortinet declared that its board has initiated a stock buyback program on Wednesday, July 26th that authorizes the company to buyback $300.00 million in shares. This buyback authorization authorizes the software maker to purchase up to 4.2% of its stock through open market purchases. Stock buyback programs are generally a sign that the company’s management believes its shares are undervalued.
In other news, Director Christopher B. Paisley sold 6,000 shares of the business’s stock in a transaction dated Monday, May 1st. The stock was sold at an average price of $39.04, for a total transaction of $234,240.00. Following the completion of the transaction, the director now directly owns 67,949 shares in the company, valued at approximately $2,652,728.96. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. Also, insider Keith Jensen sold 624 shares of Fortinet stock in a transaction dated Wednesday, May 17th. The shares were sold at an average price of $40.73, for a total value of $25,415.52. Following the transaction, the insider now owns 978 shares in the company, valued at approximately $39,833.94. The disclosure for this sale can be found here. Insiders have sold a total of 29,857 shares of company stock valued at $1,178,454 over the last 90 days. Corporate insiders own 16.40% of the company’s stock.
Several institutional investors have recently added to or reduced their stakes in FTNT. Ropes Wealth Advisors LLC boosted its position in Fortinet by 11.1% in the first quarter. Ropes Wealth Advisors LLC now owns 2,755 shares of the software maker’s stock valued at $106,000 after buying an additional 275 shares during the period. Harel Insurance Investments & Financial Services Ltd. boosted its stake in Fortinet by 21.4% in the first quarter. Harel Insurance Investments & Financial Services Ltd. now owns 3,060 shares of the software maker’s stock valued at $116,000 after buying an additional 540 shares during the last quarter. Thompson Davis & CO. Inc. boosted its stake in Fortinet by 523.8% in the first quarter. Thompson Davis & CO. Inc. now owns 3,275 shares of the software maker’s stock valued at $126,000 after buying an additional 2,750 shares during the last quarter. Migdal Insurance & Financial Holdings Ltd. purchased a new stake in Fortinet during the fourth quarter valued at approximately $121,000. Finally, NEXT Financial Group Inc boosted its stake in Fortinet by 17,296.0% in the second quarter. NEXT Financial Group Inc now owns 4,349 shares of the software maker’s stock valued at $163,000 after buying an additional 4,324 shares during the last quarter. Institutional investors and hedge funds own 72.84% of the company’s stock.
Fortinet Company Profile
Fortinet, Inc is a network security company. The Company provides cyber security solutions to a range of enterprises, service providers and government organizations across the world. Its network security solution consists of FortiGate physical, virtual machine and cloud platforms, which provide integrated security and networking functions to protect data, applications and users from network-and content-level security threats.
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