Fortinet, Inc. (NASDAQ:FTNT) Shares Acquired by Invesco Ltd.

Key Points

• Invesco Ltd. increased its stake in Fortinet, Inc. by 2.2%, now owning over 8.5 million shares valued at approximately $825 million.
• Fortinet reported a strong quarterly performance, with earnings per share of $0.64, exceeding estimates and marking a 13.6% increase in revenue year-over-year.
• Several analysts downgraded their ratings for Fortinet, with price targets falling significantly, indicating a shift to more cautious investor sentiment following recent performance.

Invesco Ltd. lifted its stake in shares of Fortinet, Inc. (NASDAQ:FTNT - Free Report) by 2.2% during the first quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The fund owned 8,570,528 shares of the software maker's stock after acquiring an additional 181,835 shares during the period. Invesco Ltd. owned 1.12% of Fortinet worth $824,999,000 as of its most recent SEC filing.

Other hedge funds have also recently added to or reduced their stakes in the company. SJS Investment Consulting Inc. boosted its stake in Fortinet by 703.1% in the 1st quarter. SJS Investment Consulting Inc. now owns 257 shares of the software maker's stock worth $25,000 after buying an additional 225 shares during the last quarter. Clearstead Trust LLC acquired a new stake in Fortinet in the 1st quarter worth about $28,000. ORG Partners LLC boosted its stake in Fortinet by 47.5% in the 1st quarter. ORG Partners LLC now owns 348 shares of the software maker's stock worth $34,000 after buying an additional 112 shares during the last quarter. EQ Wealth Advisors LLC acquired a new stake in Fortinet in the 1st quarter worth about $35,000. Finally, Mechanics Financial Corp acquired a new stake in Fortinet in the 1st quarter worth about $36,000. 83.71% of the stock is owned by institutional investors and hedge funds.

Fortinet Price Performance

FTNT stock opened at $74.39 on Friday. The company has a quick ratio of 1.29, a current ratio of 1.33 and a debt-to-equity ratio of 0.24. Fortinet, Inc. has a 52-week low of $67.97 and a 52-week high of $114.82. The stock's 50 day moving average is $101.76 and its two-hundred day moving average is $101.62. The company has a market capitalization of $56.94 billion, a PE ratio of 29.64, a P/E/G ratio of 2.56 and a beta of 1.07.

Fortinet (NASDAQ:FTNT - Get Free Report) last posted its quarterly earnings data on Wednesday, August 6th. The software maker reported $0.64 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.59 by $0.05. Fortinet had a return on equity of 111.46% and a net margin of 30.60%. The company had revenue of $1.63 billion for the quarter, compared to the consensus estimate of $1.63 billion. During the same period in the previous year, the business earned $0.57 EPS. Fortinet's revenue for the quarter was up 13.6% compared to the same quarter last year. Analysts predict that Fortinet, Inc. will post 2.09 earnings per share for the current fiscal year.

Analyst Ratings Changes

FTNT has been the topic of a number of research analyst reports. JPMorgan Chase & Co. decreased their price target on Fortinet from $105.00 to $87.00 and set a "neutral" rating on the stock in a research note on Thursday. Morgan Stanley lowered Fortinet from an "overweight" rating to a "reduce" rating and decreased their price target for the stock from $110.00 to $78.00 in a research note on Thursday. Mizuho decreased their price target on Fortinet from $87.00 to $75.00 and set an "underperform" rating on the stock in a research note on Thursday. UBS Group reduced their price objective on Fortinet from $105.00 to $90.00 and set a "neutral" rating on the stock in a research note on Thursday. Finally, Scotiabank reduced their price objective on Fortinet from $115.00 to $85.00 and set a "sector outperform" rating on the stock in a research note on Thursday. Two research analysts have rated the stock with a sell rating, twenty-five have given a hold rating, eight have assigned a buy rating and two have issued a strong buy rating to the company's stock. According to MarketBeat, the stock presently has a consensus rating of "Hold" and an average price target of $97.93.

Insider Activity at Fortinet

In related news, CEO Ken Xie sold 158,486 shares of the company's stock in a transaction that occurred on Monday, August 4th. The stock was sold at an average price of $98.48, for a total transaction of $15,607,701.28. Following the sale, the chief executive officer directly owned 51,391,879 shares of the company's stock, valued at approximately $5,061,072,243.92. This represents a 0.31% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Also, VP Michael Xie sold 476,596 shares of the company's stock in a transaction that occurred on Monday, August 4th. The shares were sold at an average price of $98.48, for a total value of $46,935,174.08. Following the sale, the vice president directly owned 9,730,560 shares in the company, valued at approximately $958,265,548.80. This represents a 4.67% decrease in their ownership of the stock. The disclosure for this sale can be found here. Corporate insiders own 17.20% of the company's stock.

Fortinet Company Profile

Fortinet, Inc provides cybersecurity and convergence of networking and security solutions worldwide. It offers secure networking solutions focus on the convergence of networking and security; network firewall solutions that consist of FortiGate data centers, hyperscale, and distributed firewalls, as well as encrypted applications; wireless LAN solutions; and secure connectivity solutions, including FortiSwitch secure ethernet switches, FortiAP wireless local area network access points, FortiExtender 5G connectivity gateways, and other products.

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