McAdam LLC Purchases New Shares in Fortinet, Inc. $FTNT

Key Points

• McAdam LLC acquired a new stake in Fortinet, purchasing 3,304 shares valued at approximately $349,000.
• Fortinet reported earnings of $0.64 per share for the last quarter, exceeding analysts' expectations and marking a 13.6% revenue increase year-over-year.
• Analysts have recently adjusted their price targets for Fortinet, with revisions from Citigroup, Barclays, and JPMorgan Chase, all setting new targets below previous highs.

McAdam LLC purchased a new stake in Fortinet, Inc. (NASDAQ:FTNT - Free Report) in the second quarter, according to its most recent disclosure with the Securities & Exchange Commission. The fund purchased 3,304 shares of the software maker's stock, valued at approximately $349,000.

A number of other hedge funds and other institutional investors have also recently added to or reduced their stakes in the company. SJS Investment Consulting Inc. raised its holdings in Fortinet by 703.1% during the 1st quarter. SJS Investment Consulting Inc. now owns 257 shares of the software maker's stock worth $25,000 after purchasing an additional 225 shares during the last quarter. Saudi Central Bank bought a new stake in Fortinet during the 1st quarter worth about $25,000. Clearstead Trust LLC bought a new stake in Fortinet during the 1st quarter worth about $28,000. Caitong International Asset Management Co. Ltd raised its holdings in Fortinet by 2,184.6% during the 1st quarter. Caitong International Asset Management Co. Ltd now owns 297 shares of the software maker's stock worth $29,000 after purchasing an additional 284 shares during the last quarter. Finally, ORG Partners LLC raised its holdings in Fortinet by 47.5% during the 1st quarter. ORG Partners LLC now owns 348 shares of the software maker's stock worth $34,000 after purchasing an additional 112 shares during the last quarter. 83.71% of the stock is currently owned by institutional investors and hedge funds.

Fortinet Trading Up 1.3%

NASDAQ:FTNT opened at $84.32 on Friday. Fortinet, Inc. has a twelve month low of $70.12 and a twelve month high of $114.82. The company has a market cap of $64.61 billion, a P/E ratio of 33.59, a price-to-earnings-growth ratio of 3.14 and a beta of 1.12. The company has a quick ratio of 1.24, a current ratio of 1.33 and a debt-to-equity ratio of 0.24. The business has a 50 day moving average price of $85.36 and a two-hundred day moving average price of $95.46.

Fortinet (NASDAQ:FTNT - Get Free Report) last announced its quarterly earnings data 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 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 analysts' expectations of $1.63 billion. During the same quarter in the prior year, the business posted $0.57 EPS. The business's revenue was up 13.6% compared to the same quarter last year. As a group, analysts expect that Fortinet, Inc. will post 2.09 EPS for the current fiscal year.

Analysts Set New Price Targets

FTNT has been the subject of several recent research reports. Citigroup reissued a "neutral" rating and set a $85.00 price objective (down from $110.00) on shares of Fortinet in a report on Monday, August 18th. Barclays lowered their price target on Fortinet from $110.00 to $90.00 and set an "equal weight" rating for the company in a research note on Thursday, August 7th. JPMorgan Chase & Co. lowered their price target on Fortinet from $105.00 to $87.00 and set a "neutral" rating for the company in a research note on Thursday, August 7th. Truist Financial lowered their price target on Fortinet from $125.00 to $95.00 and set a "buy" rating for the company in a research note on Thursday, August 7th. Finally, Wall Street Zen cut Fortinet from a "buy" rating to a "hold" rating in a research note on Saturday, August 9th. Two equities 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 issued a Sell rating to the stock. According to MarketBeat.com, the company presently has a consensus rating of "Hold" and a consensus price target of $97.03.

Insiders Place Their Bets

In related news, CEO Ken Xie sold 158,486 shares of the stock in a transaction on 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 sale, 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 transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, VP Michael Xie sold 476,596 shares of the 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 sale, the vice president owned 9,730,560 shares in the company, valued at approximately $958,265,548.80. This trade represents a 4.67% decrease in their position. The disclosure for this sale can be found here. 17.20% of the stock is currently owned by corporate insiders.

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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