Palmer Knight Co Makes New $12.39 Million Investment in Fortinet, Inc. $FTNT

Key Points

• Palmer Knight Co. purchased 80,657 Fortinet shares worth approximately $12.39 million in the second quarter, making FTNT its third-largest holding at 4.8% of the portfolio. Institutional investors collectively own 83.71% of Fortinet.
• Fortinet reported quarterly earnings of $0.90 per share, beating estimates by $0.15, while revenue rose 25.6% year over year to $2.05 billion. Shares recently traded around $158, near their 52-week high, but at an elevated P/E ratio of 55.64.
• Analyst sentiment remains mixed, with a consensus “Hold” rating and a $150.91 price target. Fortinet’s AI-focused acquisition strategy could support growth, though the stock’s high valuation leaves it vulnerable if growth slows or the acquisitions fail to produce sustainable revenue.

Palmer Knight Co purchased a new stake in Fortinet, Inc. (NASDAQ:FTNT - Free Report) in the 2nd quarter, according to the company in its most recent Form 13F filing with the SEC. The firm purchased 80,657 shares of the software maker's stock, valued at approximately $12,391,000. Fortinet accounts for approximately 4.8% of Palmer Knight Co's holdings, making the stock its 3rd largest holding.

Several other institutional investors have also modified their holdings of FTNT. Elevation Wealth Partners LLC raised its stake in shares of Fortinet by 53.6% in the second quarter. Elevation Wealth Partners LLC now owns 215 shares of the software maker's stock valued at $33,000 after acquiring an additional 75 shares in the last quarter. Florida Financial Advisors LLC boosted its holdings in Fortinet by 3.0% in the first quarter. Florida Financial Advisors LLC now owns 3,780 shares of the software maker's stock valued at $309,000 after purchasing an additional 109 shares during the period. Optimist Retirement Group LLC grew its stake in Fortinet by 2.5% during the 4th quarter. Optimist Retirement Group LLC now owns 5,010 shares of the software maker's stock worth $398,000 after purchasing an additional 122 shares in the last quarter. GW&K Investment Management LLC grew its stake in Fortinet by 31.4% during the 4th quarter. GW&K Investment Management LLC now owns 515 shares of the software maker's stock worth $41,000 after purchasing an additional 123 shares in the last quarter. Finally, Delta Investment Management LLC increased its holdings in Fortinet by 2.4% during the 4th quarter. Delta Investment Management LLC now owns 5,250 shares of the software maker's stock worth $417,000 after purchasing an additional 125 shares during the period. Institutional investors and hedge funds own 83.71% of the company's stock.

Fortinet Trading Up 1.4%

Shares of Fortinet stock opened at $158.01 on Wednesday. The company has a debt-to-equity ratio of 0.32, a quick ratio of 1.19 and a current ratio of 1.28. The company has a market capitalization of $115.93 billion, a P/E ratio of 55.64, a PEG ratio of 3.03 and a beta of 1.07. Fortinet, Inc. has a 1 year low of $73.55 and a 1 year high of $172.09. The company's fifty day moving average is $155.70 and its two-hundred day moving average is $116.37.

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

Analyst Ratings Changes

A number of research firms have issued reports on FTNT. Robert W. Baird set a $165.00 price target on Fortinet in a research report on Thursday, July 30th. BMO Capital Markets boosted their price objective on Fortinet from $170.00 to $185.00 and gave the stock a "market perform" rating in a research report on Thursday, July 30th. Truist Financial set a $183.00 target price on shares of Fortinet and gave the stock a "buy" rating in a research note on Tuesday, July 21st. Weiss Ratings upgraded shares of Fortinet from a "hold (c+)" rating to a "buy (b-)" rating in a research note on Friday, July 31st. Finally, HSBC lowered Fortinet from a "hold" rating to a "reduce" rating and set a $102.00 target price on the stock. in a report on Monday, June 29th. Two analysts have rated the stock with a Strong Buy rating, eleven have issued a Buy rating, eighteen have given a Hold rating and five have issued a Sell rating to the stock. According to MarketBeat.com, Fortinet presently has a consensus rating of "Hold" and a consensus price target of $150.91.

Fortinet News Roundup

Here are the key news stories impacting Fortinet this week:

• Positive Sentiment: Virtue AI acquisition strengthens AI security offering: Fortinet acquired Virtue AI to add continuous validation, monitoring and runtime protection for AI agents across their lifecycle. The technology is intended to expand Fortinet’s AI-Native Security Fabric as companies move enterprise AI applications into production. Fortinet Advances Continuous AI Protection with the Acquisition of Virtue AI
• Positive Sentiment: AI acquisitions support cloud-platform ambitions: Coverage highlights Fortinet’s broader push to build a cloud-based security platform through AI-related acquisitions. Investors may view the strategy as a way to accelerate growth in AI infrastructure, agent security and cloud security. Fortinet, IBD Stock of the Day, Steps Up AI Acquisitions to Build Cloud Platform
• Positive Sentiment: Analyst comparisons remain favorable: A Zacks analysis gives Fortinet an edge over CrowdStrike, citing SASE momentum, steadier execution and a relatively lower valuation. Other commentary points to projected revenue growth of roughly 19% this year and continued earnings growth, while Fortinet was also identified as a potential earnings-beat candidate. CRWD vs. FTNT: Which Cybersecurity Stock Should You Buy Right Now?
• Neutral Sentiment: Valuation and expectations are elevated: Fortinet has gained nearly 100% in 2026 and trades at a high earnings multiple, leaving the stock sensitive to any slowdown in growth or disappointment from future AI investments. Recent quarterly results exceeded estimates, providing support, but investors will need evidence that the acquisition strategy converts into sustainable revenue growth.

Insider Activity at Fortinet

In other Fortinet news, CEO Ken Xie sold 161,482 shares of the company's stock in a transaction that occurred on Monday, August 3rd. The stock was sold at an average price of $162.66, for a total transaction of $26,266,662.12. Following the completion of the sale, the chief executive officer directly owned 52,972,372 shares of the company's stock, valued at $8,616,486,029.52. This represents a 0.30% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. 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 3,907 shares of the stock in a transaction that occurred on Wednesday, June 3rd. The stock was sold at an average price of $146.44, for a total value of $572,141.08. Following the sale, the vice president directly owned 9,923,610 shares of the company's stock, valued at $1,453,213,448.40. The trade was a 0.04% 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. Insiders have sold 475,157 shares of company stock worth $69,480,964 in the last quarter. Company insiders own 17.60% of the company's stock.

Fortinet Profile

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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