Capital World Investors Purchases New Position in Fortinet, Inc. $FTNT

Key Points

• Capital World Investors bought a new stake in Fortinet during the fourth quarter, purchasing 1,262,511 shares worth about $100.3 million and ending with roughly 0.17% ownership.
• Fortinet reported better-than-expected Q1 results, with EPS of $0.82 versus the $0.62 estimate and revenue of $1.85 billion, up 20.1% year over year.
• Despite the strong earnings, analysts remain mixed: the stock has a Hold consensus rating with an average target price of $106.43, even as some firms raised their price targets and one kept a bullish view.

Capital World Investors purchased a new stake in shares of Fortinet, Inc. (NASDAQ:FTNT - Free Report) during the fourth quarter, according to its most recent 13F filing with the SEC. The institutional investor purchased 1,262,511 shares of the software maker's stock, valued at approximately $100,256,000. Capital World Investors owned approximately 0.17% of Fortinet at the end of the most recent quarter.

A number of other hedge funds and other institutional investors also recently made changes to their positions in the stock. Pinnacle Holdings LLC purchased a new stake in Fortinet during the 3rd quarter worth about $25,000. Ameriflex Group Inc. purchased a new stake in Fortinet during the 3rd quarter worth about $25,000. Wexford Capital LP purchased a new stake in Fortinet during the 3rd quarter worth about $25,000. Elyxium Wealth LLC purchased a new stake in Fortinet during the 4th quarter worth about $27,000. Finally, Palisade Asset Management LLC purchased a new stake in Fortinet during the 3rd quarter worth about $28,000. 83.71% of the stock is currently owned by institutional investors.

Fortinet Price Performance

Fortinet stock opened at $138.39 on Wednesday. Fortinet, Inc. has a 52 week low of $70.12 and a 52 week high of $150.07. The business has a 50-day simple moving average of $106.04 and a 200 day simple moving average of $89.80. The company has a quick ratio of 1.07, a current ratio of 1.15 and a debt-to-equity ratio of 0.50. The stock has a market cap of $101.39 billion, a price-to-earnings ratio of 53.43, a PEG ratio of 3.92 and a beta of 1.11.

Fortinet (NASDAQ:FTNT - Get Free Report) last posted its earnings results on Wednesday, May 6th. The software maker reported $0.82 EPS for the quarter, topping the consensus estimate of $0.62 by $0.20. Fortinet had a return on equity of 160.08% and a net margin of 27.49%.The business had revenue of $1.85 billion during the quarter, compared to analysts' expectations of $1.73 billion. During the same period in the previous year, the business earned $0.58 earnings per share. The firm's revenue was up 20.1% on a year-over-year basis. Fortinet has set its Q2 2026 guidance at 0.720-0.760 EPS and its FY 2026 guidance at 3.100-3.160 EPS. On average, research analysts forecast that Fortinet, Inc. will post 2.78 earnings per share for the current fiscal year.

Analyst Ratings Changes

FTNT has been the topic of a number of recent research reports. Cantor Fitzgerald reissued a "neutral" rating and set a $87.00 price objective on shares of Fortinet in a report on Tuesday, April 21st. UBS Group increased their price objective on Fortinet from $90.00 to $115.00 and gave the stock a "neutral" rating in a report on Thursday, May 7th. TD Cowen reissued a "buy" rating and set a $160.00 price objective (up from $125.00) on shares of Fortinet in a report on Monday. Stephens set a $115.00 price objective on Fortinet and gave the stock an "equal weight" rating in a report on Thursday, May 7th. Finally, Citigroup increased their price objective on Fortinet from $90.00 to $115.00 and gave the stock a "neutral" rating in a report on Friday, May 8th. Two investment analysts have rated the stock with a Strong Buy rating, six have given a Buy rating, twenty-four have issued a Hold rating and four have issued a Sell rating to the company. According to data from MarketBeat.com, the stock presently has a consensus rating of "Hold" and an average target price of $106.43.

Insider Buying and Selling

In related news, CEO Ken Xie sold 160,632 shares of the business's stock in a transaction dated Tuesday, June 2nd. The stock was sold at an average price of $145.58, for a total transaction of $23,384,806.56. Following the completion of the transaction, the chief executive officer directly owned 52,972,372 shares in the company, valued at $7,711,717,915.76. The trade was a 0.30% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, VP Michael Xie sold 3,907 shares of the business's stock in a transaction dated Wednesday, June 3rd. The stock was sold at an average price of $146.44, for a total value of $572,141.08. Following the transaction, the vice president owned 9,923,610 shares of the company's stock, valued at approximately $1,453,213,448.40. The trade was 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. Insiders sold a total of 318,387 shares of company stock worth $43,403,063 over the last ninety days. 17.60% of the stock is owned by corporate insiders.

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.

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