Gateway Investment Advisers LLC Acquires 4,479 Shares of Fortinet, Inc. $FTNT

Key Points

• Gateway Investment Advisers LLC increased its holdings in Fortinet, Inc. by 18.7% in Q2, now owning a total of 28,382 shares valued at $3,001,000.
• Fortinet's stock has seen several analyst downgrades, with target price reductions from firms like JPMorgan Chase and Royal Bank of Canada on August 7th, setting the average price target at $97.03.
• Insiders, including VP Michael Xie and CEO Ken Xie, sold significant amounts of stock on August 4th, indicating a 4.67% and 0.31% decrease in their ownership, respectively.

Gateway Investment Advisers LLC lifted its holdings in Fortinet, Inc. (NASDAQ:FTNT - Free Report) by 18.7% in the 2nd quarter, according to its most recent Form 13F filing with the Securities & Exchange Commission. The institutional investor owned 28,382 shares of the software maker's stock after acquiring an additional 4,479 shares during the period. Gateway Investment Advisers LLC's holdings in Fortinet were worth $3,001,000 as of its most recent SEC filing.

Other institutional investors and hedge funds have also recently bought and sold shares of the company. Financiere des Professionnels Fonds d investissement inc. bought a new position in shares of Fortinet in the second quarter valued at approximately $804,000. New England Research & Management Inc. bought a new position in Fortinet during the 2nd quarter worth $2,725,000. Fiduciary Alliance LLC bought a new position in Fortinet in the second quarter valued at about $523,000. Veracity Capital LLC acquired a new position in shares of Fortinet in the second quarter worth approximately $203,000. Finally, Lifestyle Asset Management Inc. increased its holdings in Fortinet by 306.2% in the second quarter. Lifestyle Asset Management Inc. now owns 16,049 shares of the software maker's stock worth $1,697,000 after purchasing an additional 12,098 shares in the last quarter. Institutional investors own 83.71% of the company's stock.

Insider Transactions at Fortinet

In other news, VP Michael Xie sold 476,596 shares of the firm'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 value of $46,935,174.08. Following the completion of the sale, the vice president directly owned 9,730,560 shares of the company's stock, valued at $958,265,548.80. This trade represents a 4.67% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, CEO Ken Xie sold 158,486 shares of the business's stock in a transaction dated Monday, August 4th. The stock was sold at an average price of $98.48, for a total value of $15,607,701.28. Following the transaction, the chief executive officer owned 51,391,879 shares in the company, valued at approximately $5,061,072,243.92. This represents a 0.31% decrease in their position. The disclosure for this sale can be found here. 17.20% of the stock is owned by corporate insiders.

Analysts Set New Price Targets

Several analysts have weighed in on the company. Barclays lowered their price target on Fortinet from $110.00 to $90.00 and set an "equal weight" rating on the stock in a report on Thursday, August 7th. KeyCorp cut Fortinet from an "overweight" rating to a "sector weight" rating in a report on Thursday, August 7th. Truist Financial cut their price target on Fortinet from $125.00 to $95.00 and set a "buy" rating on the stock in a report on Thursday, August 7th. Cowen cut Fortinet from a "buy" rating to a "hold" rating in a research report on Thursday, August 7th. Finally, Scotiabank cut their price objective on Fortinet from $115.00 to $85.00 and set a "sector outperform" rating for the company in a research note on Thursday, August 7th. Two research analysts have rated the stock with a Strong Buy rating, eight have issued a Buy rating, twenty-five have issued a Hold rating and two have given a Sell rating to the stock. According to data from MarketBeat.com, the company has an average rating of "Hold" and an average target price of $97.03.

Fortinet Price Performance

Shares of FTNT stock traded up $3.22 during trading hours on Friday, hitting $84.21. 22,843,059 shares of the company's stock were exchanged, compared to its average volume of 5,694,682. The company has a current ratio of 1.33, a quick ratio of 1.24 and a debt-to-equity ratio of 0.24. Fortinet, Inc. has a 12-month low of $70.12 and a 12-month high of $114.82. The business's 50 day simple moving average is $87.36 and its 200-day simple moving average is $95.96. The company has a market capitalization of $64.53 billion, a PE ratio of 33.55, a PEG ratio of 3.18 and a beta of 1.12.

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

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.