Gunderson Capital Management Inc. Buys Shares of 24,307 Fortinet, Inc. $FTNT

Key Points

• Gunderson Capital Management Inc. acquired 24,307 shares of Fortinet, Inc. valued at approximately $2,570,000, as reported in their recent SEC filing.
• Fortinet's CEO, Ken Xie, sold 158,486 shares on August 4th for over $15.6 million, resulting in a slight decrease in his ownership stake.
• Fortinet reported a net margin of 30.60% and a quarterly revenue increase of 13.6% compared to the same quarter last year, with earnings per share surpassing analysts' expectations.

Gunderson Capital Management Inc. purchased a new position in Fortinet, Inc. (NASDAQ:FTNT - Free Report) during the second quarter, according to its most recent Form 13F filing with the SEC. The fund purchased 24,307 shares of the software maker's stock, valued at approximately $2,570,000.

A number of other large investors have also added to or reduced their stakes in the stock. Cooper Financial Group purchased a new position in shares of Fortinet in the 2nd quarter worth about $2,653,000. Geneos Wealth Management Inc. boosted its stake in shares of Fortinet by 40.7% in the 1st quarter. Geneos Wealth Management Inc. now owns 73,186 shares of the software maker's stock worth $7,045,000 after buying an additional 21,177 shares during the last quarter. Ritholtz Wealth Management boosted its holdings in shares of Fortinet by 38.4% in the first quarter. Ritholtz Wealth Management now owns 6,794 shares of the software maker's stock worth $654,000 after buying an additional 1,885 shares during the last quarter. 1834 Investment Advisors Co. increased its holdings in Fortinet by 2.9% during the second quarter. 1834 Investment Advisors Co. now owns 12,332 shares of the software maker's stock valued at $1,304,000 after buying an additional 353 shares during the last quarter. Finally, Gould Capital LLC bought a new position in Fortinet in the first quarter worth approximately $908,000. Hedge funds and other institutional investors own 83.71% of the company's stock.

Insider Activity

In related news, CEO Ken Xie sold 158,486 shares of Fortinet stock in a transaction that occurred on Monday, August 4th. The shares were sold at an average price of $98.48, for a total transaction of $15,607,701.28. Following the transaction, the chief executive officer directly owned 51,391,879 shares of the company's stock, valued at $5,061,072,243.92. This trade represents a 0.31% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through this link. Also, VP Michael Xie sold 476,596 shares of Fortinet stock in a transaction 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 completion of the transaction, the vice president owned 9,730,560 shares in the company, valued at $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. Insiders own 17.20% of the company's stock.

Fortinet Stock Down 0.3%

NASDAQ:FTNT opened at $86.19 on Friday. The company has a market cap of $66.04 billion, a price-to-earnings ratio of 34.34, a price-to-earnings-growth ratio of 3.26 and a beta of 1.09. Fortinet, Inc. has a twelve month low of $70.12 and a twelve month high of $114.82. The company has a current ratio of 1.33, a quick ratio of 1.24 and a debt-to-equity ratio of 0.24. The stock has a fifty day simple moving average of $82.01 and a 200-day simple moving average of $94.73.

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

Wall Street Analyst Weigh In

A number of analysts have commented on the company. UBS Group reduced their price target on Fortinet from $105.00 to $90.00 and set a "neutral" rating for the company in a research report on Thursday, August 7th. Morgan Stanley reaffirmed an "underweight" rating and issued a $67.00 price objective (down previously from $78.00) on shares of Fortinet in a research note on Tuesday, September 2nd. Cantor Fitzgerald increased their price objective on shares of Fortinet from $100.00 to $110.00 and gave the company a "neutral" rating in a report on Wednesday, July 16th. Evercore ISI reduced their target price on Fortinet from $105.00 to $78.00 and set an "in-line" rating on the stock in a report on Friday, August 8th. Finally, DZ Bank raised shares of Fortinet from a "hold" rating to a "buy" rating and set a $85.00 price target on the stock in a research note on Friday, August 8th. Two research analysts have rated the stock with a Strong Buy rating, eight have issued a Buy rating, twenty-six have given a Hold rating and two have issued a Sell rating to the company's stock. According to MarketBeat.com, the stock presently has a consensus rating of "Hold" and an average target price of $97.03.

Fortinet 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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