Fortinet, Inc. $FTNT Stock: VestGen Advisors LLC Trims Position

Key Points

• VestGen Advisors cut its Fortinet stake by 62.2% in the third quarter, selling 10,115 shares and retaining 6,134 shares valued at approximately $1.1 million. Institutional investors collectively own 83.71% of Fortinet.
• Fortinet reported quarterly revenue of $2.08 billion, up 20.5% year over year, and EPS of $0.91, exceeding analyst expectations. The company also authorized an additional $1.2 billion in share repurchases and raised its full-year guidance.
• Despite strong results, analysts remain cautious as services growth lags product growth and concerns grow over slowing momentum and valuation. Fortinet has a consensus “Hold” rating with an average price target of $147.94.

VestGen Advisors LLC reduced its stake in Fortinet, Inc. (NASDAQ:FTNT - Free Report) by 62.2% during the 3rd quarter, according to the company in its most recent filing with the SEC. The fund owned 6,134 shares of the software maker's stock after selling 10,115 shares during the quarter. VestGen Advisors LLC's holdings in Fortinet were worth $1,097,000 at the end of the most recent reporting period.

Several other hedge funds have also recently bought and sold shares of FTNT. BlackRock Inc. acquired a new stake in shares of Fortinet during the second quarter worth about $9,561,650,000. First Trust Advisors LP grew its holdings in shares of Fortinet by 45.5% during the first quarter. First Trust Advisors LP now owns 11,506,173 shares of the software maker's stock worth $940,284,000 after purchasing an additional 3,598,487 shares during the last quarter. Arrowstreet Capital Limited Partnership increased its position in Fortinet by 87.4% during the first quarter. Arrowstreet Capital Limited Partnership now owns 9,651,024 shares of the software maker's stock worth $788,682,000 after buying an additional 4,500,194 shares during the period. Bank of New York Mellon Corp acquired a new position in shares of Fortinet in the 2nd quarter valued at $1,432,842,000. Finally, Legal & General Group Plc purchased a new stake in shares of Fortinet in the second quarter valued at about $979,062,000. Institutional investors and hedge funds own 83.71% of the company's stock.

Fortinet Price Performance

FTNT stock opened at $136.08 on Friday. The company has a quick ratio of 1.19, a current ratio of 1.40 and a debt-to-equity ratio of 0.22. Fortinet, Inc. has a 52-week low of $73.55 and a 52-week high of $197.13. The stock's 50 day moving average is $171.34 and its two-hundred day moving average is $128.28. The company has a market capitalization of $99.84 billion, a PE ratio of 44.18, a P/E/G ratio of 2.53 and a beta of 1.03.

Fortinet (NASDAQ:FTNT - Get Free Report) last issued its earnings results on Wednesday, October 28th. The software maker reported $0.91 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.86 by $0.05. Fortinet had a net margin of 28.96% and a return on equity of 152.72%. The business had revenue of $2.08 billion for the quarter, compared to analyst estimates of $2.06 billion. During the same quarter in the prior year, the business posted $0.74 EPS. The company's revenue for the quarter was up 20.5% on a year-over-year basis. Analysts predict that Fortinet, Inc. will post 3.19 earnings per share for the current fiscal year.

Analysts Set New Price Targets

Several equities analysts have issued reports on the stock. Scotiabank dropped their price objective on shares of Fortinet from $163.00 to $140.00 and set a "sector perform" rating on the stock in a research note on Thursday. Robert W. Baird set a $165.00 price objective on Fortinet and gave the stock a "neutral" rating in a report on Thursday, July 30th. Evercore set a $165.00 price target on shares of Fortinet in a report on Thursday, July 30th. Needham & Company LLC reaffirmed a "hold" rating on shares of Fortinet in a research note on Thursday. Finally, Guggenheim reaffirmed a "buy" rating on shares of Fortinet in a research note on Thursday. One equities research analyst has rated the stock with a Strong Buy rating, ten have assigned a Buy rating, twenty-four have given a Hold rating and six have issued a Sell rating to the stock. Based on data from MarketBeat.com, the company has a consensus rating of "Hold" and an average price target of $147.94.

Trending Headlines about Fortinet

Here are the key news stories impacting Fortinet this week:

• Positive Sentiment: Fortinet reported third-quarter revenue of approximately $2.08 billion, up 20.5% year over year, and adjusted EPS of $0.91, exceeding consensus estimates. Billings increased 29%, while operating margins reached a record. Fortinet Q3 Earnings and Revenues Beat Estimates
• Positive Sentiment: Management raised full-year 2026 guidance to $8.1 billion-$8.2 billion in revenue and $3.54-$3.58 in EPS. Fourth-quarter EPS guidance of $0.93-$0.95 also exceeds the consensus estimate of $0.86. Fortinet Raises Guidance
• Positive Sentiment: The board authorized an additional $1.2 billion in share repurchases, and quarterly free cash flow was approximately $865 million. Analysts at TD Cowen, Rosenblatt and Truist retained bullish ratings despite lowering their price targets. Fortinet Adds to Buyback Program
• Neutral Sentiment: Fortinet is technically oversold after a sharp multi-week decline, while rising earnings estimates could support a rebound. However, the technical signal does not resolve concerns about the company’s growth mix. Fortinet May See a Trend Reversal
• Negative Sentiment: Service revenue grew only 13%, versus 37% growth in product revenue. Investors are concerned that hardware sales tied to AI infrastructure are not converting into recurring services quickly enough, reducing near-term revenue visibility. The Real Reason Fortinet Dropped
• Negative Sentiment: Management lowered its services outlook, while fourth-quarter revenue guidance implies growth deceleration from the third quarter. Normalizing pricing benefits, higher inventory costs and longer component lead times added to investor concerns.
• Negative Sentiment: Wells Fargo cut its price target to $115 and assigned an underweight rating; Susquehanna lowered its target to $145 and rated the shares neutral. Other firms, including Bank of America, Citi, Barclays and Scotiabank, also reduced targets or ratings. Analysts Cut Fortinet Forecasts
• Negative Sentiment: The broader technology and cybersecurity sell-off is amplifying the reaction, despite a major cryptocurrency hack highlighting demand for digital security. Investors are also questioning whether Fortinet’s premium valuation remains justified as growth slows.

Insider Transactions at Fortinet

In other news, COO John Whittle sold 53,865 shares of the stock in a transaction 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 completion of the transaction, the chief operating officer owned 96,987 shares of the company's stock, valued at approximately $16,045,529.28. This represents a 35.71% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, VP Michael Xie sold 3,121 shares of the firm's stock in a transaction dated Monday, August 3rd. The shares were sold at an average price of $162.63, for a total transaction of $507,568.23. Following the transaction, the vice president directly owned 9,918,360 shares in the company, valued at approximately $1,613,022,886.80. The trade was 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 quarter, insiders sold 221,303 shares of company stock worth $36,164,034. Insiders own 17.60% of the company's stock.

About Fortinet

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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