Fortinet (NASDAQ:FTNT) Upgraded at Wall Street Zen

Key Points

• Wall Street Zen upgraded Fortinet to “buy” from “hold,” though broader analyst sentiment remains “hold,” with a consensus price target of $155.37.
• Fortinet reported quarterly earnings of $0.90 per share, beating estimates by $0.15, while revenue rose 25.6% year over year to $2.05 billion.
• Shares opened at $194.75 near their 52-week high, reflecting strong momentum but also a premium valuation; insiders sold approximately $36.2 million of stock in the last quarter.

Fortinet (NASDAQ:FTNT - Get Free Report) was upgraded by Wall Street Zen from a "hold" rating to a "buy" rating in a research note issued to investors on Saturday, Wall Street Zen reports.

Other equities analysts have also recently issued research reports about the stock. HC Wainwright restated a "buy" rating on shares of Fortinet in a research note on Thursday, July 30th. Capital One Financial lifted their target price on shares of Fortinet from $150.00 to $185.00 and gave the company an "equal weight" rating in a research report on Thursday, July 30th. BMO Capital Markets upped their target price on shares of Fortinet from $170.00 to $185.00 and gave the company a "market perform" rating in a research note on Thursday, July 30th. Scotiabank reissued a "sector perform" rating and issued a $163.00 price target (up from $110.00) on shares of Fortinet in a research report on Thursday, July 30th. Finally, Jefferies Financial Group raised their price target on shares of Fortinet from $165.00 to $190.00 and gave the stock a "hold" rating in a research note on Thursday, July 30th. Two analysts have rated the stock with a Strong Buy rating, ten have assigned a Buy rating, twenty-one have assigned a Hold rating and five have assigned a Sell rating to the stock. According to data from MarketBeat, Fortinet presently has an average rating of "Hold" and a consensus target price of $155.37.

Fortinet Price Performance

Shares of Fortinet stock opened at $194.75 on Friday. The firm has a fifty day moving average price of $167.26 and a two-hundred day moving average price of $139.22. The company has a market cap of $142.89 billion, a PE ratio of 68.57, a price-to-earnings-growth ratio of 3.53 and a beta of 1.03. The company has a debt-to-equity ratio of 0.32, a current ratio of 1.28 and a quick ratio of 1.19. Fortinet has a fifty-two week low of $73.55 and a fifty-two week high of $194.95.

Fortinet (NASDAQ:FTNT - Get Free Report) last released its earnings results on Wednesday, July 29th. The software maker reported $0.90 earnings per share for the quarter, topping analysts' consensus estimates of $0.75 by $0.15. Fortinet had a return on equity of 191.54% and a net margin of 28.17%. The business had revenue of $2.05 billion for the quarter, compared to the consensus estimate of $1.89 billion. During the same period last year, the business earned $0.64 earnings per share. The firm's revenue for the quarter was up 25.6% compared to the same quarter last year. Fortinet has set its FY 2026 guidance at 3.410-3.470 EPS and its Q3 2026 guidance at 0.830-0.870 EPS. Analysts expect that Fortinet will post 3.10 EPS for the current year.

Insider Buying and Selling

In other Fortinet news, VP Michael Xie sold 3,121 shares of the company's stock in a transaction dated Monday, August 3rd. The shares were sold at an average price of $162.63, for a total transaction of $507,568.23. Following the sale, the vice president directly owned 9,918,360 shares of the company's stock, valued at approximately $1,613,022,886.80. This represents a 0.03% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CEO Ken Xie sold 161,482 shares of the firm's stock in a transaction that occurred on Monday, August 3rd. The stock was sold at an average price of $162.66, for a total transaction of $26,266,662.12. Following the sale, the chief executive officer directly owned 52,972,372 shares of the company's stock, valued at approximately $8,616,486,029.52. The trade was a 0.30% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders sold 221,303 shares of company stock worth $36,164,034 in the last quarter. 17.60% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Fortinet

A number of hedge funds and other institutional investors have recently bought and sold shares of the business. Jacobs & Co. CA bought a new position in Fortinet in the 3rd quarter valued at $223,000. Schaper Benz & Wise Investment Counsel Inc. WI acquired a new position in Fortinet in the third quarter worth $227,000. Davidson Trust Co. bought a new stake in shares of Fortinet during the third quarter worth $206,000. Bullock Wealth Management Group increased its stake in shares of Fortinet by 1.2% in the third quarter. Bullock Wealth Management Group now owns 8,717 shares of the software maker's stock valued at $1,558,000 after buying an additional 102 shares in the last quarter. Finally, Riversedge Advisors LLC increased its stake in shares of Fortinet by 34.3% in the third quarter. Riversedge Advisors LLC now owns 4,980 shares of the software maker's stock valued at $890,000 after buying an additional 1,271 shares in the last quarter. 83.71% of the stock is owned by institutional investors and hedge funds.

Key Fortinet News

Here are the key news stories impacting Fortinet this week:

• Positive Sentiment: Analysts and financial commentators continue to highlight Fortinet as a strong momentum stock. Its recent price performance, favorable earnings trends, and improving investor interest could attract additional momentum-focused buyers. Are You Looking for a Top Momentum Pick? Why Fortinet Is a Great Choice
• Positive Sentiment: Fortinet is being presented as an artificial-intelligence cybersecurity opportunity. Its products can help protect physical AI infrastructure, networks, and cloud applications as businesses increase security spending. Commentators also view its valuation as relatively reasonable compared with some cybersecurity peers. 1 Millionaire-Maker AI Cybersecurity Stock to Buy and Hold
• Positive Sentiment: Comparisons with CrowdStrike and other technology stocks emphasize Fortinet’s strong share-price performance and the potential for further gains if earnings estimates and cybersecurity demand remain favorable. CrowdStrike vs. Fortinet: Which Cybersecurity Stock Is Poised for Higher Highs?
• Neutral Sentiment: Coverage comparing Fortinet with the broader computer and technology sector focuses on relative year-to-date performance rather than a new company-specific catalyst. Are Computer and Technology Stocks Lagging Fortinet This Year?
• Neutral Sentiment: A report described a significant increase in short interest but simultaneously listed short interest at zero shares and a 0.0-day short-interest ratio. That contradictory data appears unreliable and is unlikely to offer a clear trading signal.
• Negative Sentiment: With Fortinet near all-time highs and trading at a premium earnings multiple, the stock may be vulnerable to profit-taking or disappointment if growth slows, valuation concerns increase, or it fails to meet elevated expectations. With Fortinet Stock at All-Time Highs, Here’s What Can Move It Up or Down

Fortinet Company Profile

Fortinet, Inc develops and provides cybersecurity products and services for businesses, governments, and service providers. The company's portfolio is designed to protect networks, endpoints, applications, cloud environments, and operational technology from cyber threats.

Its offerings include FortiGate next-generation firewalls, FortiSwitch secure networking switches, FortiAP wireless access points, FortiClient endpoint security, and FortiSASE secure access service edge solutions. Fortinet also provides centralized management and analytics through products such as FortiManager and FortiAnalyzer, along with security operations, threat intelligence, and other subscription-based services through its FortiGuard portfolio.

Founded in 2000, Fortinet serves customers globally through direct sales, channel partners, and managed security service providers.

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