Fortinet, Inc. $FTNT Shares Sold by Convergence Financial LLC

Key Points

• Convergence Financial LLC cut its Fortinet position by 78.6% in the fourth quarter, selling 23,415 shares and leaving it with 6,379 shares valued at about $507,000.
• Fortinet reported a strong earnings beat for its latest quarter, with EPS of $0.82 versus $0.62 expected and revenue of $1.85 billion, up 20.1% year over year. The company also raised guidance for Q2 2026 and FY 2026.
• Despite some recent insider and analyst caution, Fortinet remains heavily owned by institutions and hedge funds, with 83.71% of shares held by institutional investors. Recent insider sales by CEO Ken Xie and VP Michael Xie were completed under pre-arranged 10b5-1 plans.

Convergence Financial LLC cut its position in Fortinet, Inc. (NASDAQ:FTNT - Free Report) by 78.6% in the fourth quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The institutional investor owned 6,379 shares of the software maker's stock after selling 23,415 shares during the quarter. Convergence Financial LLC's holdings in Fortinet were worth $507,000 as of its most recent filing with the Securities and Exchange Commission.

Other institutional investors have also modified their holdings of the company. Norges Bank purchased a new stake in Fortinet during the 4th quarter worth about $1,152,917,000. Vanguard Group Inc. increased its holdings in Fortinet by 4.0% during the 3rd quarter. Vanguard Group Inc. now owns 75,581,275 shares of the software maker's stock worth $6,354,874,000 after purchasing an additional 2,894,355 shares during the period. Van ECK Associates Corp increased its holdings in Fortinet by 62.1% during the 3rd quarter. Van ECK Associates Corp now owns 5,564,558 shares of the software maker's stock worth $467,868,000 after purchasing an additional 2,132,109 shares during the period. First Trust Advisors LP increased its holdings in Fortinet by 30.9% during the 3rd quarter. First Trust Advisors LP now owns 7,575,662 shares of the software maker's stock worth $636,962,000 after purchasing an additional 1,790,033 shares during the period. Finally, Invesco Ltd. increased its holdings in Fortinet by 17.0% during the 3rd quarter. Invesco Ltd. now owns 10,816,519 shares of the software maker's stock worth $909,453,000 after purchasing an additional 1,568,337 shares during the period. 83.71% of the stock is owned by institutional investors and hedge funds.

Trending Headlines about Fortinet

Here are the key news stories impacting Fortinet this week:

• Positive Sentiment: Articles highlighted Fortinet’s momentum profile and strong year-to-date performance, reinforcing the view that the stock is benefiting from sustained demand for cybersecurity and AI-driven security spending. Article Title
• Positive Sentiment: Coverage on rising AI-related cyberattacks pointed to higher global security spending, which supports the long-term growth outlook for Fortinet and peers in the cybersecurity space. Article Title
• Positive Sentiment: Fortinet’s latest earnings beat remains a key fundamental driver, with the company delivering stronger-than-expected EPS and revenue growth, helping sustain investor confidence in the stock. Article Title
• Neutral Sentiment: A transcript on quantum computing and quantum-safe cybersecurity suggests Fortinet is thinking about future threats and strategy, but it does not appear to be an immediate catalyst for the shares. Article Title
• Negative Sentiment: Recent insider sales by CEO Ken Xie and VP Michael Xie may create some caution, even though the trades were pre-arranged under 10b5-1 plans and involved small percentage reductions in ownership. Article Title

Fortinet Stock Up 2.2%

Fortinet stock opened at $149.67 on Friday. Fortinet, Inc. has a fifty-two week low of $70.12 and a fifty-two week high of $150.07. The company has a debt-to-equity ratio of 0.50, a quick ratio of 1.07 and a current ratio of 1.15. The company has a market capitalization of $109.66 billion, a P/E ratio of 57.79, a PEG ratio of 4.01 and a beta of 1.11. The stock has a 50-day simple moving average of $102.28 and a 200-day simple moving average of $88.50.

Fortinet (NASDAQ:FTNT - Get Free Report) last posted its earnings results on Wednesday, May 6th. The software maker reported $0.82 earnings per share for the quarter, beating 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 the consensus estimate of $1.73 billion. During the same period in the previous year, the business earned $0.58 EPS. The business's quarterly 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. Equities research analysts expect that Fortinet, Inc. will post 2.78 earnings per share for the current year.

Analyst Ratings Changes

Several equities research analysts have weighed in on FTNT shares. Zacks Research upgraded Fortinet from a "hold" rating to a "strong-buy" rating in a report on Thursday, May 14th. Morgan Stanley reaffirmed an "underweight" rating and set a $80.00 price objective on shares of Fortinet in a research report on Thursday, May 7th. Truist Financial set a $120.00 price objective on Fortinet and gave the stock a "buy" rating in a research report on Thursday, May 7th. Susquehanna upped their price objective on Fortinet from $90.00 to $115.00 and gave the stock a "neutral" rating in a research report on Friday, May 8th. Finally, DZ Bank cut Fortinet from a "buy" rating to a "hold" rating and set a $125.00 price objective for the company. in a research report on Tuesday, May 19th. Two research analysts have rated the stock with a Strong Buy rating, five have assigned a Buy rating, twenty-four have assigned a Hold rating and four have given a Sell rating to the company. According to MarketBeat, Fortinet currently has an average rating of "Hold" and an average price target of $102.69.

Insider Activity

In other news, 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 completion of the sale, the vice president directly 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 position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Ken Xie sold 160,632 shares of the business's stock in a transaction dated Tuesday, June 2nd. The shares were 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 directly owned 52,972,372 shares of the company's stock, valued at $7,711,717,915.76. The trade was 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. In the last three months, insiders sold 318,387 shares of company stock valued at $43,403,063. Insiders own 17.60% of the company's stock.

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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