Alyeska Investment Group L.P. Has $142.37 Million Position in Fortinet, Inc. $FTNT

Key Points

• Alyeska Investment Group cut its Fortinet stake by 24.4% in the second quarter, selling 298,681 shares and retaining 926,793 shares worth approximately $142.4 million. Institutional investors own 83.71% of the company.
• Fortinet reported strong quarterly results, with revenue up 25.6% year over year to $2.05 billion and EPS of $0.90, beating estimates of $0.75. The company also issued fiscal 2026 EPS guidance of $3.41 to $3.47.
• Despite positive growth drivers—including AI security products and CMMC certification—valuation remains a concern, with shares trading near their annual high at roughly 58 times earnings. The average analyst rating is “Hold,” with a consensus price target of $150.91, below the recent $166 price.

Alyeska Investment Group L.P. cut its stake in Fortinet, Inc. (NASDAQ:FTNT - Free Report) by 24.4% during the second quarter, according to its most recent disclosure with the Securities and Exchange Commission. The fund owned 926,793 shares of the software maker's stock after selling 298,681 shares during the quarter. Alyeska Investment Group L.P. owned approximately 0.13% of Fortinet worth $142,374,000 as of its most recent filing with the Securities and Exchange Commission.

Several other hedge funds and other institutional investors have also modified their holdings of FTNT. Flputnam Investment Management Co. acquired a new position in Fortinet in the second quarter worth approximately $202,000. Cookson Peirce & Co. Inc. bought a new position in Fortinet during the second quarter valued at approximately $226,000. Hennessy Advisors Inc. acquired a new stake in Fortinet in the second quarter valued at approximately $226,000. Greenleaf Trust lifted its stake in Fortinet by 5.9% in the second quarter. Greenleaf Trust now owns 11,482 shares of the software maker's stock valued at $1,764,000 after acquiring an additional 640 shares during the last quarter. Finally, New Mexico Educational Retirement Board grew its position in Fortinet by 4.7% in the second quarter. New Mexico Educational Retirement Board now owns 31,450 shares of the software maker's stock worth $4,831,000 after acquiring an additional 1,400 shares in the last quarter. 83.71% of the stock is currently owned by hedge funds and other institutional investors.

Insider Activity

In other Fortinet news, VP Michael Xie sold 3,907 shares of the firm's stock in a transaction that occurred on Wednesday, June 3rd. The stock was sold at an average price of $146.44, for a total value of $572,141.08. Following the sale, the vice president owned 9,923,610 shares of the company's stock, valued at $1,453,213,448.40. This trade represents a 0.04% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Ken Xie sold 161,482 shares of Fortinet stock in a transaction that occurred on Monday, August 3rd. The stock was sold at an average price of $162.66, for a total value of $26,266,662.12. Following the completion of the transaction, the chief executive officer directly owned 52,972,372 shares in the company, valued at approximately $8,616,486,029.52. This represents a 0.30% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. 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 have sold a total of 329,142 shares of company stock valued at $50,731,178 in the last three months. 17.60% of the stock is owned by insiders.

Fortinet News Summary

Here are the key news stories impacting Fortinet this week:

• Positive Sentiment: Fortinet Federal, a wholly owned subsidiary, earned CMMC Level 2 certification after validating 110 NIST SP 800-171 controls. The certification could improve Fortinet’s credibility with U.S. government agencies and defense contractors seeking compliant cybersecurity providers. Fortinet Federal’s New CMMC Level 2 Certification
• Positive Sentiment: Analysts continue to point to platform adoption, artificial-intelligence security products, product expansion and CMMC-related demand as potential growth drivers across enterprise and government markets. Fortinet Stock Surges on Security Platform Momentum
• Positive Sentiment: A new multi-year sponsorship agreement with Stanford Athletics supports Fortinet’s brand visibility, although the financial impact is likely modest compared with its core business. Stanford Athletics and Fortinet Sponsorship
• Neutral Sentiment: Fortinet recently moved above its 20-day moving average, signaling short-term technical momentum. However, technical support can also encourage profit-taking after a large advance. Fortinet Crosses Above Its 20-Day Moving Average
• Negative Sentiment: Valuation is a key overhang. With the stock near its annual high and trading at roughly 58 times earnings, investors may be demanding continued strong execution, leaving limited room for disappointment. Fortinet Valuation Leaves Limited Margin of Safety
• Negative Sentiment: Insider-trading data shows executives made no open-market purchases and reported multiple sales over the past six months. In addition, the reported median analyst price target of $115 is below recent trading levels, reinforcing concerns that expectations may have become excessive.

Analyst Ratings Changes

FTNT has been the topic of several analyst reports. BTIG Research increased their price target on shares of Fortinet from $186.00 to $203.00 and gave the stock a "buy" rating in a research note on Thursday, July 30th. William Blair reaffirmed a "market perform" rating on shares of Fortinet in a research note on Tuesday, July 21st. The Goldman Sachs Group reiterated a "buy" rating and issued a $190.00 price objective on shares of Fortinet in a report on Thursday, July 30th. Susquehanna increased their target price on shares of Fortinet from $115.00 to $160.00 and gave the stock a "neutral" rating in a research report on Friday, July 31st. Finally, Evercore set a $165.00 target price on Fortinet in a report on Thursday, July 30th. Two investment analysts have rated the stock with a Strong Buy rating, nine have issued a Buy rating, twenty have issued a Hold rating and five have assigned a Sell rating to the stock. According to MarketBeat, the stock has an average rating of "Hold" and a consensus price target of $150.91.

Fortinet Price Performance

NASDAQ FTNT opened at $166.00 on Friday. The company has a current ratio of 1.28, a quick ratio of 1.19 and a debt-to-equity ratio of 0.32. The company has a fifty day simple moving average of $157.68 and a 200 day simple moving average of $120.40. The company has a market cap of $121.80 billion, a P/E ratio of 58.45, a P/E/G ratio of 3.15 and a beta of 1.07. Fortinet, Inc. has a 1 year low of $73.55 and a 1 year high of $173.89.

Fortinet (NASDAQ:FTNT - Get Free Report) last posted its earnings results on Wednesday, July 29th. The software maker reported $0.90 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.75 by $0.15. Fortinet had a net margin of 28.17% and a return on equity of 191.54%. The business had revenue of $2.05 billion for the quarter, compared to analyst estimates of $1.89 billion. During the same period last year, the business posted $0.64 EPS. Fortinet's revenue 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. On average, sell-side analysts predict that Fortinet, Inc. will post 3.05 EPS for the current year.

Fortinet Company Profile

Fortinet, Inc NASDAQ: FTNT is a multinational cybersecurity company that develops and delivers integrated security solutions for enterprise, service provider and government customers worldwide. Founded in 2000 and headquartered in Sunnyvale, California, the company was co‑founded by Ken Xie and Michael Xie. Ken Xie serves as chairman and chief executive officer, and the company operates through a global sales, channel and services organization to support customers across the Americas, EMEA and Asia‑Pacific.

Fortinet's product portfolio centers on network security appliances and software, with its FortiGate next‑generation firewalls and the FortiOS operating system forming a core platform.

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