Fortinet, Inc. $FTNT Stock Holdings Lessened by CX Institutional

Key Points

• CX Institutional cut its Fortinet stake by 91.8% in the second quarter, selling 86,357 shares and retaining 7,686 shares valued at approximately $1.18 million. Institutional investors still own 83.71% of Fortinet.
• Fortinet reported stronger-than-expected quarterly results, with revenue up 25.6% year over year to $2.05 billion and EPS of $0.90 versus the $0.75 consensus estimate.
• Despite positive earnings momentum, analyst sentiment remains mixed: Fortinet has an average “Hold” rating and a $150.91 consensus price target, below its recent trading price, while the stock trades at a relatively high P/E ratio of 57.84.

CX Institutional reduced its stake in shares of Fortinet, Inc. (NASDAQ:FTNT - Free Report) by 91.8% in the 2nd quarter, according to the company in its most recent Form 13F filing with the SEC. The firm owned 7,686 shares of the software maker's stock after selling 86,357 shares during the quarter. CX Institutional's holdings in Fortinet were worth $1,181,000 as of its most recent filing with the SEC.

Other hedge funds and other institutional investors also recently added to or reduced their stakes in the company. Physician Wealth Advisors Inc. increased its stake in shares of Fortinet by 408.3% in the first quarter. Physician Wealth Advisors Inc. now owns 305 shares of the software maker's stock worth $25,000 after acquiring an additional 245 shares during the last quarter. Wexford Capital LP acquired a new stake in Fortinet during the third quarter valued at $25,000. Elyxium Wealth LLC acquired a new stake in Fortinet during the fourth quarter valued at $27,000. Palisade Asset Management LLC purchased a new position in Fortinet in the third quarter valued at about $28,000. Finally, Ares Financial Consulting LLC acquired a new position in Fortinet in the 4th quarter worth about $29,000. Hedge funds and other institutional investors own 83.71% of the company's stock.

Wall Street Analyst Weigh In

Several equities research analysts have recently issued reports on FTNT shares. Bank of America reiterated a "buy" rating on shares of Fortinet in a report on Monday, July 27th. Stephens set a $115.00 price objective on shares of Fortinet and gave the company an "equal weight" rating in a research report on Thursday, May 7th. HSBC cut shares of Fortinet from a "hold" rating to a "reduce" rating and set a $102.00 target price for the company. in a research note on Monday, June 29th. Compass Point set a $100.00 target price on shares of Fortinet in a research report on Monday, May 4th. Finally, Morgan Stanley restated a "positive" rating and set a $136.00 price target (up from $133.00) on shares of Fortinet in a research note on Thursday, July 30th. Two equities research analysts have rated the stock with a Strong Buy rating, eleven have issued a Buy rating, twenty-one have issued a Hold rating and five have assigned a Sell rating to the stock. Based on data from MarketBeat, the stock currently has an average rating of "Hold" and a consensus target price of $150.91.

Fortinet Trading Down 2.4%

Shares of FTNT stock opened at $164.26 on Thursday. Fortinet, Inc. has a 1 year low of $70.12 and a 1 year high of $172.09. The firm's fifty day simple moving average is $152.50 and its 200 day simple moving average is $111.17. The firm has a market capitalization of $120.52 billion, a P/E ratio of 57.84, a price-to-earnings-growth ratio of 3.19 and a beta of 1.07. The company has a current ratio of 1.28, a quick ratio of 1.19 and a debt-to-equity ratio of 0.32.

Fortinet (NASDAQ:FTNT - Get Free Report) last issued its quarterly earnings results on Wednesday, July 29th. The software maker reported $0.90 earnings per share for the quarter, beating analysts' consensus estimates of $0.75 by $0.15. The firm 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 191.54%. The business's revenue was up 25.6% on a year-over-year basis. During the same period in the prior year, the firm earned $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, sell-side analysts predict that Fortinet, Inc. will post 3.05 EPS for the current year.

Insider Activity at Fortinet

In other Fortinet news, COO John Whittle sold 146,015 shares of the company's stock in a transaction that occurred on Thursday, May 21st. The stock was sold at an average price of $128.41, for a total value of $18,749,786.15. Following the completion of the transaction, the chief operating officer owned 94,724 shares of the company's stock, valued at $12,163,508.84. This represents a 60.65% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available at this link. Also, VP Michael Xie sold 3,121 shares of the firm's stock in a transaction that occurred on Monday, August 3rd. The stock was sold at an average price of $162.63, for a total value of $507,568.23. Following the completion of the sale, the vice president owned 9,918,360 shares of the company's stock, valued at $1,613,022,886.80. This represents a 0.03% decrease in their position. The SEC filing for this sale provides additional information. 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. Over the last 90 days, insiders sold 475,157 shares of company stock worth $69,480,964. Company insiders own 17.60% of the company's stock.

More Fortinet News

Here are the key news stories impacting Fortinet this week:

• Positive Sentiment: Strong earnings and raised guidance support the growth story. Fortinet reported second-quarter revenue of approximately $2.05 billion, up 25.6% year over year, and adjusted earnings of $0.90 per share versus the $0.75 analyst consensus. Management raised full-year 2026 revenue guidance to $8.02 billion-$8.18 billion and forecast third-quarter revenue of $2.01 billion-$2.10 billion. Fortinet guidance and AI firewall article
• Positive Sentiment: AI-focused security products and rising cyber threats provide potential catalysts. Fortinet launched the FortiGate 1200G series with FortiSASE Outpost for high-performance, AI-focused and sovereignty-sensitive hybrid environments. Separately, reported AI-powered “vishing” attacks targeting major financial firms underscore the growing need for cybersecurity services. AI-powered vishing cyberattacks article
• Positive Sentiment: Quantitative screens remain favorable. Zacks added FTNT to its Rank #1 “Strong Buy” and momentum lists, while other coverage identified Fortinet as a growth-at-a-reasonable-price candidate because of its above-average financial growth. Zacks momentum stocks article
• Neutral Sentiment: Insider sales were limited and appear administrative. CEO Ken Xie sold 161,482 shares and VP Michael Xie sold 3,121 shares under pre-arranged Rule 10b5-1 plans to cover tax withholding on vested equity awards. The transactions reduced their holdings by only 0.30% and 0.03%, respectively.
• Negative Sentiment: Valuation and analyst caution may be encouraging investors to lock in gains. FTNT trades at a high earnings multiple after a substantial run, while its average analyst rating remains “Hold” with a consensus price target below recent trading levels. Deutsche Bank and Baird maintained Hold ratings, and Baird cited margin and balance-sheet risks with a $165 target.

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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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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