Fortinet, Inc. $FTNT Stock Position Lifted by TD Waterhouse Canada Inc.

Key Points

• TD Waterhouse Canada increased its Fortinet stake by 146.5% in the third quarter, adding 108,622 shares for a total holding of 182,760 shares valued at approximately $32.7 million. Institutional investors and hedge funds now own 83.71% of the company.
• Fortinet recently reported stronger-than-expected results, with quarterly revenue up 25.6% year over year to $2.05 billion and EPS of $0.90 versus the $0.75 consensus estimate.
• The stock has faced pressure, including a 7% decline and concerns about a smaller firewall-refresh opportunity, while analyst sentiment remains mixed: Fortinet carries an average “Hold” rating and a $159.09 consensus price target. Insiders also sold $36.2 million of shares over the past three months.

TD Waterhouse Canada Inc. increased its holdings in shares of Fortinet, Inc. (NASDAQ:FTNT - Free Report) by 146.5% during the 3rd quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The firm owned 182,760 shares of the software maker's stock after buying an additional 108,622 shares during the period. TD Waterhouse Canada Inc.'s holdings in Fortinet were worth $32,669,000 at the end of the most recent quarter.

A number of other hedge funds also recently added to or reduced their stakes in FTNT. Physician Wealth Advisors Inc. boosted its position in Fortinet by 408.3% in the 1st quarter. Physician Wealth Advisors Inc. now owns 305 shares of the software maker's stock valued at $25,000 after buying an additional 245 shares during the period. Dunhill Financial LLC acquired a new position in shares of Fortinet in the second quarter worth $25,000. Burk Holdings LLC purchased a new stake in shares of Fortinet during the second quarter worth $25,000. Cornerstone Financial Management LLC increased its position in shares of Fortinet by 102.5% during the second quarter. Cornerstone Financial Management LLC now owns 164 shares of the software maker's stock worth $25,000 after acquiring an additional 83 shares during the period. Finally, Maseco LLP purchased a new stake in shares of Fortinet during the first quarter worth $29,000. 83.71% of the stock is currently owned by institutional investors and hedge funds.

Trending Headlines about Fortinet

Here are the key news stories impacting Fortinet this week:

• Positive Sentiment: Fortinet expanded its partnership with Atos to provide a unified cybersecurity framework for hybrid- and multi-cloud environments. The agreement could strengthen Fortinet’s enterprise reach and support demand for its security products and services. Fortinet Expands Global Cybersecurity Framework For Hybrid And Multi Cloud Security
• Positive Sentiment: Growth-oriented analysis remains supportive, citing Fortinet’s above-average financial growth and its potential to outperform the broader market. Its latest reported quarter also showed strong earnings and revenue growth, providing a fundamental counterpoint to the current selling pressure. 3 Reasons Why Growth Investors Shouldn't Overlook Fortinet
• Neutral Sentiment: Wells Fargo raised its Fortinet price target from $135 to $160 but retained an “underweight” rating. The higher target is constructive, although it still implies limited upside relative to the stock’s recent trading level. Wells Fargo Lifts Target for Fortinet Stock
• Negative Sentiment: Morgan Stanley downgraded FTNT to “underweight” from “equal weight,” warning that a smaller-than-expected firewall refresh opportunity could reduce future revenue estimates. This concern overshadowed the company’s continued customer expansion and has become the clearest company-specific catalyst behind the decline. Fortinet Falls as Analyst Downgrade Revives Firewall Refresh Concerns
• Negative Sentiment: Fortinet’s premium valuation makes the stock vulnerable when growth expectations weaken. Broader weakness in technology and AI-related stocks, along with reports of net insider selling, added to investor caution ahead of the company’s October 28 earnings report.

Analyst Ratings Changes

Several analysts have recently issued reports on FTNT shares. The Goldman Sachs Group reiterated a "buy" rating and issued a $190.00 price objective (up from $116.00) on shares of Fortinet in a research note on Thursday, July 30th. Sanford C. Bernstein reissued a "market perform" rating and set a $145.00 target price (up from $102.00) on shares of Fortinet in a research note on Thursday, September 17th. Morgan Stanley restated a "positive" rating and set a $136.00 price target (up from $133.00) on shares of Fortinet in a report on Thursday, July 30th. TD Cowen restated a "buy" rating and set a $225.00 price target (up from $215.00) on shares of Fortinet in a report on Tuesday. Finally, Wells Fargo & Company increased their price target on Fortinet from $135.00 to $160.00 and gave the company an "underweight" rating in a research report on Thursday. Two equities research analysts have rated the stock with a Strong Buy rating, ten have issued a Buy rating, twenty-one have given a Hold rating and five have given a Sell rating to the company. According to data from MarketBeat.com, the company has an average rating of "Hold" and an average price target of $159.09.

Fortinet Trading Down 7.0%

NASDAQ:FTNT opened at $169.13 on Friday. The stock has a 50-day simple moving average of $169.33 and a 200-day simple moving average of $142.85. The stock has a market cap of $124.09 billion, a P/E ratio of 59.55, a P/E/G ratio of 3.16 and a beta of 1.03. Fortinet, Inc. has a 1 year low of $73.55 and a 1 year high of $197.13. The company has a debt-to-equity ratio of 0.32, a quick ratio of 1.19 and a current ratio of 1.28.

Fortinet (NASDAQ:FTNT - Get Free Report) last released 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. Fortinet had a return on equity of 191.54% and a net margin of 28.17%. The business had revenue of $2.05 billion for the quarter, compared to the consensus estimate of $1.89 billion. During the same quarter in the prior year, the business posted $0.64 EPS. The business's revenue for the quarter was up 25.6% on a year-over-year basis. 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, analysts anticipate that Fortinet, Inc. will post 3.10 earnings per share for the current fiscal year.

Insider Activity at Fortinet

In related news, VP Michael Xie sold 3,121 shares of the company'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 transaction, the vice president directly 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 ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. 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, COO John Whittle sold 53,865 shares of the stock in a transaction that occurred on Monday, September 14th. The shares were sold at an average price of $165.44, for a total transaction of $8,911,425.60. Following the completion of the transaction, the chief operating officer owned 96,987 shares in the company, valued at $16,045,529.28. This represents a 35.71% 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. Insiders sold 221,303 shares of company stock valued at $36,164,034 over the last three months. 17.60% of the stock is owned by corporate insiders.

Fortinet Profile

Fortinet, Inc develops cybersecurity products and services designed to protect networks, endpoints, applications, cloud environments and operational technology systems. The company's portfolio includes next-generation firewalls, secure networking products, endpoint security, web application security, email security, identity and access solutions, and security information and event management tools.

Its product offerings include FortiGate network security appliances and cloud-based firewalls, along with FortiSwitch, FortiAP and FortiExtender solutions for secure connectivity.

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