NEOS Investment Management LLC Increases Stake in Fortinet, Inc. $FTNT

Key Points

• NEOS Investment Management increased its Fortinet stake by 11.5% in the second quarter, owning 544,153 shares worth approximately $83.6 million. Institutional investors collectively own 83.71% of FTNT.
• Fortinet exceeded quarterly expectations, reporting $0.90 in EPS and $2.05 billion in revenue, with revenue up 25.6% year over year. The company issued fiscal 2026 EPS guidance of $3.410–$3.470.
• Analyst sentiment remains mixed: Fortinet has a consensus “Hold” rating and an average price target of $150.91, below its stated opening price of $156.36. CEO Ken Xie and VP Michael Xie sold shares under pre-arranged plans to cover tax obligations.

NEOS Investment Management LLC increased its position in shares of Fortinet, Inc. (NASDAQ:FTNT - Free Report) by 11.5% in the second quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The firm owned 544,153 shares of the software maker's stock after purchasing an additional 56,059 shares during the period. NEOS Investment Management LLC owned approximately 0.07% of Fortinet worth $83,593,000 at the end of the most recent quarter.

A number of other hedge funds and other institutional investors also recently added to or reduced their stakes in the company. Brighton Jones LLC boosted its position in shares of Fortinet by 2.2% during the fourth quarter. Brighton Jones LLC now owns 10,327 shares of the software maker's stock valued at $976,000 after buying an additional 221 shares during the period. Bison Wealth LLC bought a new stake in shares of Fortinet during the 4th quarter worth approximately $585,000. HUB Investment Partners LLC boosted its holdings in Fortinet by 29.1% during the 2nd quarter. HUB Investment Partners LLC now owns 5,299 shares of the software maker's stock valued at $560,000 after acquiring an additional 1,193 shares during the period. Diversify Advisory Services LLC bought a new position in Fortinet in the 2nd quarter valued at $1,136,000. Finally, Quantinno Capital Management LP increased its stake in Fortinet by 27.4% in the second quarter. Quantinno Capital Management LP now owns 144,989 shares of the software maker's stock worth $15,328,000 after purchasing an additional 31,202 shares during the period. 83.71% of the stock is owned by hedge funds and other institutional investors.

Analyst Upgrades and Downgrades

A number of analysts have recently issued reports on FTNT shares. Susquehanna boosted their target price on shares of Fortinet from $115.00 to $160.00 and gave the company a "neutral" rating in a research note on Friday, July 31st. DZ Bank lowered shares of Fortinet from a "hold" rating to a "strong sell" rating in a report on Thursday, July 30th. Morgan Stanley reissued a "positive" rating and issued a $136.00 price objective (up from $133.00) on shares of Fortinet in a research report on Thursday, July 30th. Piper Sandler restated a "neutral" rating and issued a $175.00 target price (up from $110.00) on shares of Fortinet in a research note on Thursday, July 30th. Finally, Barclays set a $190.00 target price on shares of Fortinet and gave the stock an "equal weight" rating in a research report on Thursday, July 30th. Two research analysts have rated the stock with a Strong Buy rating, nine have issued a Buy rating, twenty have given a Hold rating and five have issued a Sell rating to the company's stock. According to MarketBeat, Fortinet has a consensus rating of "Hold" and an average price target of $150.91.

Fortinet Stock Performance

FTNT stock opened at $156.36 on Friday. The company has a debt-to-equity ratio of 0.32, a current ratio of 1.28 and a quick ratio of 1.19. The business has a 50-day moving average price of $158.78 and a 200 day moving average price of $122.76. The company has a market capitalization of $114.72 billion, a P/E ratio of 55.06, a PEG ratio of 2.93 and a beta of 1.06. Fortinet, Inc. has a 1-year low of $73.55 and a 1-year high of $173.89.

Fortinet (NASDAQ:FTNT - Get Free Report) last released its quarterly earnings data on Wednesday, July 29th. The software maker reported $0.90 earnings per share for the quarter, topping analysts' consensus estimates of $0.75 by $0.15. The company had revenue of $2.05 billion during the quarter, compared to analyst estimates of $1.89 billion. Fortinet had a net margin of 28.17% and a return on equity of 191.54%. The firm's revenue for the quarter was up 25.6% compared to the same quarter last year. During the same period in the prior year, the firm earned $0.64 earnings per share. Fortinet has set its FY 2026 guidance at 3.410-3.470 EPS and its Q3 2026 guidance at 0.830-0.870 EPS. As a group, equities research analysts forecast that Fortinet, Inc. will post 3.05 EPS for the current fiscal year.

Insider Activity at Fortinet

In other news, CEO Ken Xie sold 161,482 shares of the stock in a transaction that occurred on Monday, August 3rd. The shares were sold at an average price of $162.66, for a total transaction of $26,266,662.12. Following the transaction, the chief executive officer directly owned 52,972,372 shares in the company, valued at approximately $8,616,486,029.52. This trade represents a 0.30% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. 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. Also, VP Michael Xie sold 3,121 shares of Fortinet stock in a transaction that occurred on 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 ownership of the stock. 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. 17.60% of the stock is currently owned by corporate insiders.

About Fortinet

Fortinet, Inc NASDAQ: FTNT is a multinational cybersecurity company that develops and delivers integrated security solutions for enterprise, service provider and government customers worldwide. Founded in 2000 and headquartered in Sunnyvale, California, the company was co‑founded by Ken Xie and Michael Xie. Ken Xie serves as chairman and chief executive officer, and the company operates through a global sales, channel and services organization to support customers across the Americas, EMEA and Asia‑Pacific.

Fortinet's product portfolio centers on network security appliances and software, with its FortiGate next‑generation firewalls and the FortiOS operating system forming a core platform.

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