California State Teachers Retirement System Has $75.79 Million Stock Holdings in Fortinet, Inc. $FTNT

Key Points

• California State Teachers Retirement System reduced its Fortinet stake by 4.4% in the first quarter, selling 43,130 shares and retaining 927,431 shares valued at approximately $75.79 million. Institutional investors collectively own 83.71% of Fortinet.
• Fortinet reported stronger-than-expected quarterly results, with adjusted EPS of $0.90 and revenue of $2.05 billion, while raising its fiscal 2026 revenue guidance to approximately $8.0 billion–$8.2 billion.
• Despite improved analyst sentiment and a current average rating of “Hold,” Fortinet’s valuation remains a concern: shares trade at a P/E ratio of about 54, and some analysts warn the stock could be vulnerable if its growth momentum slows.

California State Teachers Retirement System reduced its stake in shares of Fortinet, Inc. (NASDAQ:FTNT - Free Report) by 4.4% during the 1st quarter, according to its most recent 13F filing with the SEC. The firm owned 927,431 shares of the software maker's stock after selling 43,130 shares during the period. California State Teachers Retirement System owned approximately 0.13% of Fortinet worth $75,790,000 as of its most recent filing with the SEC.

Other institutional investors have also recently bought and sold shares of the company. Empowered Funds LLC boosted its holdings in shares of Fortinet by 108.3% in the first quarter. Empowered Funds LLC now owns 157,306 shares of the software maker's stock valued at $12,855,000 after buying an additional 81,778 shares during the period. KCM Investment Advisors LLC raised its holdings in shares of Fortinet by 3.0% during the first quarter. KCM Investment Advisors LLC now owns 41,857 shares of the software maker's stock worth $3,421,000 after acquiring an additional 1,204 shares during the period. Glen Eagle Advisors LLC lifted its position in Fortinet by 15,481.0% in the 1st quarter. Glen Eagle Advisors LLC now owns 15,581 shares of the software maker's stock valued at $1,273,000 after acquiring an additional 15,481 shares in the last quarter. Quantinno Capital Management LP lifted its position in Fortinet by 2.3% in the 1st quarter. Quantinno Capital Management LP now owns 541,153 shares of the software maker's stock valued at $44,223,000 after acquiring an additional 12,394 shares in the last quarter. Finally, Ardmore Road Asset Management LP boosted its stake in Fortinet by 18.2% in the 1st quarter. Ardmore Road Asset Management LP now owns 321,200 shares of the software maker's stock worth $26,248,000 after purchasing an additional 49,452 shares during the period. Institutional investors own 83.71% of the company's stock.

Key Fortinet News

Here are the key news stories impacting Fortinet this week:

• Positive Sentiment: Fortinet reported adjusted earnings of $0.90 per share, exceeding the $0.75 consensus estimate, while revenue rose 26% year over year to $2.05 billion, above expectations of $1.89 billion. Fortinet Q2 Earnings Snapshot
• Positive Sentiment: Product revenue surged 52% to $773 million, billings increased 33% to $2.37 billion, and management cited strong demand for AI infrastructure, SASE, firewall and operational-technology security products. FTNT Q2 Earnings Call Highlights
• Positive Sentiment: Fortinet raised fiscal-year 2026 revenue guidance to approximately $8.0 billion-$8.2 billion and EPS guidance to $3.41-$3.47. Third-quarter revenue guidance of $2.01 billion-$2.10 billion and EPS guidance of $0.83-$0.87 also exceed Wall Street estimates. Fortinet Raises Revenue Outlook
• Positive Sentiment: Wall Street became more constructive after the results: BTIG raised its target to $203 with a Buy rating, Rosenblatt lifted its target to $195 with a Buy rating, and Citigroup increased its target to $185 while maintaining Neutral. Analysts Boost Forecasts
• Neutral Sentiment: William Blair maintained a Hold rating, acknowledging strong execution and pricing tailwinds but questioning how durable the acceleration will be. William Blair Maintains Hold
• Negative Sentiment: Some valuation analysis suggests FTNT shares look expensive after a roughly 152% five-year advance, leaving the stock vulnerable if growth or product momentum slows. Fortinet Valuation Analysis

Insider Activity at Fortinet

In other news, CEO Ken Xie sold 160,632 shares of the stock in a transaction that occurred on Tuesday, June 2nd. The stock was sold at an average price of $145.58, for a total value of $23,384,806.56. Following the completion of the sale, the chief executive officer owned 52,972,372 shares of the company's stock, valued at approximately $7,711,717,915.76. This represents a 0.30% decrease in their position. The transaction was disclosed in a filing with the SEC, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, VP Michael Xie sold 3,907 shares of the firm's stock in a transaction on Wednesday, June 3rd. The shares were sold at an average price of $146.44, for a total transaction of $572,141.08. Following the completion of the transaction, the vice president directly owned 9,923,610 shares of the company's stock, valued at $1,453,213,448.40. This represents a 0.04% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last ninety days, insiders sold 318,387 shares of company stock valued at $43,403,063. Insiders own 17.60% of the company's stock.

Wall Street Analyst Weigh In

Several analysts have issued reports on the company. TD Cowen reissued a "buy" rating and issued a $215.00 price target (up from $160.00) on shares of Fortinet in a research note on Monday, July 13th. Morgan Stanley reaffirmed a "positive" rating and set a $136.00 price objective (up from $133.00) on shares of Fortinet in a research report on Thursday. JPMorgan Chase & Co. increased their price objective on Fortinet from $73.00 to $75.00 and gave the stock an "underweight" rating in a report on Thursday, May 7th. BMO Capital Markets lifted their target price on Fortinet from $170.00 to $185.00 and gave the company a "market perform" rating in a research report on Thursday. Finally, Susquehanna boosted their target price on Fortinet from $90.00 to $115.00 and gave the company a "neutral" rating in a research note on Friday, May 8th. Two analysts have rated the stock with a Strong Buy rating, ten have issued a Buy rating, twenty-three have issued a Hold rating and four have assigned a Sell rating to the company's stock. According to data from MarketBeat.com, the stock currently has an average rating of "Hold" and an average price target of $149.55.

Fortinet Trading Up 0.7%

Shares of NASDAQ:FTNT opened at $154.25 on Friday. The company's 50-day moving average price is $149.94 and its two-hundred day moving average price is $108.72. The company has a debt-to-equity ratio of 0.50, a current ratio of 1.15 and a quick ratio of 1.07. Fortinet, Inc. has a one year low of $70.12 and a one year high of $170.35. The stock has a market capitalization of $113.01 billion, a PE ratio of 54.31, a price-to-earnings-growth ratio of 4.17 and a beta of 1.09.

Fortinet (NASDAQ:FTNT - Get Free Report) last posted its quarterly earnings data on Wednesday, July 29th. The software maker reported $0.90 EPS for the quarter, topping analysts' consensus estimates of $0.75 by $0.15. The company had revenue of $2.05 billion during the quarter, compared to the consensus estimate of $1.89 billion. Fortinet had a net margin of 28.17% and a return on equity of 218.88%. The company's quarterly revenue was up 25.6% on a year-over-year basis. During the same period in the prior year, the business posted $0.64 EPS. 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, equities analysts forecast that Fortinet, Inc. will post 2.8 EPS for the current fiscal year.

Fortinet 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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.