Fortinet, Inc. $FTNT Shares Sold by Renaissance Technologies LLC

Key Points

• Renaissance Technologies cut its Fortinet position by 86.8% in the first quarter, selling 402,800 shares and retaining 61,394 shares valued at approximately $5.0 million.
• Institutional sentiment was mixed: Arrowstreet Capital increased its stake by 87.4%, while several other funds added shares or opened new positions. Institutions and hedge funds collectively own 83.71% of Fortinet.
• Fortinet reported stronger-than-expected quarterly results, with $0.90 earnings per share and $2.05 billion in revenue, but valuation remains a concern. Analysts maintain a consensus “Hold” rating, with an average price target of $150.91 versus the stock’s reported $160.11 opening price.

Renaissance Technologies LLC cut its holdings in shares of Fortinet, Inc. (NASDAQ:FTNT - Free Report) by 86.8% during the first quarter, according to its most recent disclosure with the Securities and Exchange Commission. The fund owned 61,394 shares of the software maker's stock after selling 402,800 shares during the quarter. Renaissance Technologies LLC's holdings in Fortinet were worth $5,017,000 at the end of the most recent reporting period.

Other institutional investors and hedge funds have also made changes to their positions in the company. Gabelli Funds LLC increased its holdings in shares of Fortinet by 13.4% in the first quarter. Gabelli Funds LLC now owns 5,703 shares of the software maker's stock valued at $466,000 after purchasing an additional 672 shares during the last quarter. Hilltop Holdings Inc. acquired a new position in Fortinet during the first quarter worth $236,000. Oribel Capital Management LP purchased a new stake in Fortinet in the 1st quarter valued at $2,117,000. Compound Planning Inc. increased its stake in shares of Fortinet by 76.7% in the 1st quarter. Compound Planning Inc. now owns 28,492 shares of the software maker's stock worth $2,328,000 after acquiring an additional 12,364 shares during the last quarter. Finally, Arrowstreet Capital Limited Partnership increased its stake in shares of Fortinet by 87.4% in the 1st quarter. Arrowstreet Capital Limited Partnership now owns 9,651,024 shares of the software maker's stock worth $788,682,000 after acquiring an additional 4,500,194 shares during the last quarter. 83.71% of the stock is currently owned by institutional investors and hedge funds.

Key Fortinet News

Here are the key news stories impacting Fortinet this week:

• Positive Sentiment: Cybersecurity demand and AI-related threats support growth. Zacks highlighted Fortinet as a leading security stock, citing accelerating digital transformation, cloud migration and the growing need to defend against AI-enabled attacks. Bloomberg’s report on AI-powered “vishing” attacks targeting financial firms reinforces the long-term demand outlook. Wall Street hit by wave of AI-powered vishing cyberattacks
• Positive Sentiment: Fortinet continues to receive favorable momentum ratings. Zacks added FTNT to its Rank #1 “Strong Buy” and momentum-stock lists, while other coverage identified it as a growth-at-a-reasonable-price and momentum candidate. What Makes Fortinet a Strong Momentum Stock
• Positive Sentiment: Brand recognition and AI execution add modest support. Forrester named Fortinet the Asia-Pacific winner of its inaugural B2B Marketing AI Impact Award, recognizing its use of AI to improve marketing performance. A separate “Bull of the Day” feature also emphasized the company’s opportunity as AI expands the cybersecurity threat landscape. Forrester Recognizes Fortinet as APAC Winner
• Neutral Sentiment: Insider selling was limited and pre-planned. Vice President Michael Xie sold approximately $508,000 of shares under a Rule 10b5-1 plan to cover tax obligations. The transaction reduced his holdings by only 0.03%, making it unlikely to signal a change in business outlook. Fortinet Insider Selling
• Negative Sentiment: Valuation and analyst caution are key risks. Seeking Alpha downgraded Fortinet to a Hold, while the broader analyst consensus remains Hold with a target below recent trading levels. At roughly 56 times earnings, investors may be taking profits after the stock’s substantial advance, particularly if growth or margins moderate. Downgrading Fortinet: Key Factors for a Hold Recommendation

Fortinet Stock Down 2.4%

Shares of Fortinet stock opened at $160.11 on Friday. The company has a quick ratio of 1.19, a current ratio of 1.28 and a debt-to-equity ratio of 0.32. Fortinet, Inc. has a 52-week low of $70.12 and a 52-week high of $172.09. The company has a market capitalization of $117.47 billion, a P/E ratio of 56.38, a P/E/G ratio of 3.11 and a beta of 1.07. The company has a 50 day moving average of $153.11 and a 200 day moving average of $111.77.

Fortinet (NASDAQ:FTNT - Get Free Report) last announced its quarterly earnings data on Wednesday, July 29th. The software maker reported $0.90 EPS for the quarter, beating analysts' consensus estimates of $0.75 by $0.15. The company had revenue of $2.05 billion for 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 191.54%. The company's quarterly revenue was up 25.6% compared to the same quarter last year. During the same period in the prior year, the firm 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. As a group, research analysts forecast that Fortinet, Inc. will post 3.05 EPS for the current fiscal year.

Analyst Upgrades and Downgrades

A number of equities analysts recently commented on FTNT shares. JPMorgan Chase & Co. raised their target price on Fortinet from $73.00 to $75.00 and gave the company an "underweight" rating in a report on Thursday, May 7th. BTIG Research boosted 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. Compass Point set a $100.00 price target on shares of Fortinet in a research report on Monday, May 4th. DZ Bank lowered shares of Fortinet from a "hold" rating to a "strong sell" rating in a research note on Thursday, July 30th. Finally, Royal Bank Of Canada set a $185.00 price objective on shares of Fortinet and gave the company a "sector perform" rating in a report on Thursday, July 30th. Two research analysts have rated the stock with a Strong Buy rating, eleven have assigned a Buy rating, twenty have issued a Hold rating and five have issued a Sell rating to the company. Based on data from MarketBeat, Fortinet presently has a consensus rating of "Hold" and an average target price of $150.91.

Insider Buying and Selling at Fortinet

In other Fortinet news, CEO Ken Xie sold 161,482 shares of Fortinet stock in a transaction dated 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 completion of the sale, the chief executive officer directly owned 52,972,372 shares of the company's stock, valued at $8,616,486,029.52. The trade was a 0.30% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at 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, VP Michael Xie sold 3,121 shares of Fortinet stock in a transaction dated Monday, August 3rd. The stock was sold at an average price of $162.63, for a total value of $507,568.23. Following the sale, the vice president directly owned 9,918,360 shares of the company's stock, valued at $1,613,022,886.80. This trade represents a 0.03% 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 475,157 shares of company stock worth $69,480,964 over the last ninety days. Corporate 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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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.

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