Fortinet, Inc. $FTNT Stock Sold by Davidson Capital Management Inc.

Key Points

• Davidson Capital Management cut its Fortinet stake by 20.9% in the third quarter, selling 12,303 shares and retaining 46,518 shares valued at approximately $8.3 million. Institutional investors collectively own 83.71% of Fortinet.
• Fortinet recently reported stronger-than-expected results, with quarterly revenue of $2.05 billion, up 25.6% year over year, and earnings of $0.90 per share versus the $0.75 consensus estimate.
• The stock carries a consensus “Hold” rating and $159.09 price target, below its $181.91 opening price, while analysts remain attentive to its elevated valuation, insider selling and potential competitive pressure from AI-focused cybersecurity entrants.

Davidson Capital Management Inc. trimmed its position in shares of Fortinet, Inc. (NASDAQ:FTNT - Free Report) by 20.9% during the 3rd quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The firm owned 46,518 shares of the software maker's stock after selling 12,303 shares during the period. Fortinet accounts for 1.4% of Davidson Capital Management Inc.'s portfolio, making the stock its 11th largest holding. Davidson Capital Management Inc.'s holdings in Fortinet were worth $8,316,000 at the end of the most recent quarter.

Other institutional investors and hedge funds have also recently modified their holdings of the company. Puff Wealth Management LLC increased its stake in Fortinet by 3.4% in the 3rd quarter. Puff Wealth Management LLC now owns 1,660 shares of the software maker's stock worth $297,000 after buying an additional 54 shares in the last quarter. Columbus Macro LLC lifted its position in shares of Fortinet by 1.9% in the third quarter. Columbus Macro LLC now owns 2,981 shares of the software maker's stock valued at $533,000 after acquiring an additional 55 shares in the last quarter. Elevation Wealth Partners LLC lifted its position in shares of Fortinet by 53.6% in the second quarter. Elevation Wealth Partners LLC now owns 215 shares of the software maker's stock valued at $33,000 after acquiring an additional 75 shares in the last quarter. Sigma Planning Corp lifted its position in shares of Fortinet by 1.0% in the second quarter. Sigma Planning Corp now owns 7,927 shares of the software maker's stock valued at $1,218,000 after acquiring an additional 80 shares in the last quarter. Finally, Fortitude Family Office LLC boosted its stake in shares of Fortinet by 39.4% in the third quarter. Fortitude Family Office LLC now owns 283 shares of the software maker's stock worth $51,000 after acquiring an additional 80 shares during the period. 83.71% of the stock is currently owned by institutional investors.

Fortinet News Summary

Here are the key news stories impacting Fortinet this week:

• Positive Sentiment: Fortinet and Atos expanded their longstanding relationship into a global cybersecurity framework for hybrid- and multi-cloud environments. The arrangement combines Fortinet’s security products with Atos’ managed-security services and consulting, potentially broadening Fortinet’s enterprise reach and recurring services opportunity. Fortinet Expands Global Cybersecurity Framework
• Positive Sentiment: Recent commentary highlighted Fortinet’s SASE growth, rising services revenue and comparatively lower valuation versus Cloudflare, supporting the view that the company remains a long-term cybersecurity growth candidate. NET vs. FTNT
• Neutral Sentiment: Investor attention is also focused on upcoming earnings. Fortinet’s most recent reported quarter showed revenue growth and earnings above analyst expectations, although the stock’s elevated valuation leaves the market sensitive to any guidance or results that fall short of expectations. Fortinet Shares Jump with Earnings on Horizon
• Negative Sentiment: Wells Fargo raised its Fortinet price target but maintained an “underweight” rating; the new target remains below the stock’s current level, signaling concern that expectations may be too high.
• Negative Sentiment: Reports that OpenAI could acquire a cybersecurity startup pressured major cybersecurity stocks, including Fortinet. The possibility of a well-funded new competitor is raising concerns about future pricing, innovation and market-share dynamics across the sector. OpenAI Cybersecurity Deal Impacts Sector

Insider Buying and Selling

In other Fortinet news, CEO Ken Xie sold 161,482 shares of the business's stock in a transaction that occurred on 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 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 ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available through 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, COO John Whittle sold 53,865 shares of the business's stock in a transaction that occurred on Monday, September 14th. The stock was sold at an average price of $165.44, for a total value of $8,911,425.60. Following the sale, the chief operating officer directly owned 96,987 shares in the company, valued at $16,045,529.28. The trade was a 35.71% 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. Over the last quarter, insiders sold 221,303 shares of company stock worth $36,164,034. Corporate insiders own 17.60% of the company's stock.

Analysts Set New Price Targets

Several analysts recently issued reports on the company. Jefferies Financial Group increased their target price on Fortinet from $165.00 to $190.00 and gave the stock a "hold" rating in a research report on Thursday, July 30th. Wolfe Research set a $175.00 target price on Fortinet in a research note on Thursday, July 30th. JPMorgan Chase & Co. boosted their price target on Fortinet from $100.00 to $118.00 and gave the stock an "underweight" rating in a report on Thursday, July 30th. Royal Bank Of Canada boosted their price target on Fortinet from $185.00 to $205.00 and gave the stock a "sector perform" rating in a report on Monday. Finally, Morgan Stanley restated a "positive" rating and issued a $136.00 price target (up from $133.00) on shares of Fortinet in a research note on Thursday, July 30th. Two analysts have rated the stock with a Strong Buy rating, ten have assigned a Buy rating, twenty-one have given a Hold rating and five have given a Sell rating to the company. Based on data from MarketBeat, the stock currently has a consensus rating of "Hold" and a consensus price target of $159.09.

Fortinet Price Performance

FTNT stock opened at $181.91 on Friday. Fortinet, Inc. has a 52 week low of $73.55 and a 52 week high of $197.13. The company has a quick ratio of 1.19, a current ratio of 1.28 and a debt-to-equity ratio of 0.32. The company has a fifty day simple moving average of $169.14 and a two-hundred day simple moving average of $142.66. The firm has a market capitalization of $133.47 billion, a P/E ratio of 64.05, a price-to-earnings-growth ratio of 3.44 and a beta of 1.03.

Fortinet (NASDAQ:FTNT - Get Free Report) last posted its earnings results on Wednesday, July 29th. The software maker reported $0.90 earnings per share for the quarter, topping analysts' consensus estimates of $0.75 by $0.15. Fortinet had a net margin of 28.17% and a return on equity of 191.54%. The firm had revenue of $2.05 billion for the quarter, compared to the consensus estimate of $1.89 billion. During the same period in the previous year, the firm posted $0.64 EPS. The business's quarterly revenue 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. Analysts anticipate that Fortinet, Inc. will post 3.10 earnings per share for the current fiscal year.

Fortinet Profile

Fortinet, Inc develops and provides cybersecurity products and services for businesses, governments, and service providers. The company's portfolio is designed to protect networks, endpoints, applications, cloud environments, and operational technology from cyber threats.

Its offerings include FortiGate next-generation firewalls, FortiSwitch secure networking switches, FortiAP wireless access points, FortiClient endpoint security, and FortiSASE secure access service edge solutions. Fortinet also provides centralized management and analytics through products such as FortiManager and FortiAnalyzer, along with security operations, threat intelligence, and other subscription-based services through its FortiGuard portfolio.

Founded in 2000, Fortinet serves customers globally through direct sales, channel partners, and managed security service providers.

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