QRG Capital Management Inc. Grows Holdings in Fortinet, Inc. $FTNT

Key Points

• QRG Capital Management Inc. increased its holdings in Fortinet, Inc. by 11.1% during Q2, bringing its total shares to 66,471, valued at approximately $7 million.
• Fortinet reported a 13.6% increase in quarterly revenue, earning $1.63 billion and beating analysts' EPS estimates by $0.05 at $0.64 per share.
• Corporate insiders, including CEO Ken Xie, sold significant amounts of Fortinet shares; Xie sold 158,486 shares valued at over $15 million.

QRG Capital Management Inc. increased its holdings in shares of Fortinet, Inc. (NASDAQ:FTNT - Free Report) by 11.1% during the second quarter, according to its most recent filing with the Securities & Exchange Commission. The firm owned 66,471 shares of the software maker's stock after acquiring an additional 6,617 shares during the period. QRG Capital Management Inc.'s holdings in Fortinet were worth $7,027,000 as of its most recent SEC filing.

A number of other large investors also recently bought and sold shares of the business. Vanguard Group Inc. grew its stake in Fortinet by 5.2% in the 1st quarter. Vanguard Group Inc. now owns 71,662,404 shares of the software maker's stock valued at $6,898,223,000 after acquiring an additional 3,546,934 shares during the period. AQR Capital Management LLC grew its position in shares of Fortinet by 40.9% in the first quarter. AQR Capital Management LLC now owns 5,971,648 shares of the software maker's stock valued at $561,156,000 after purchasing an additional 1,733,670 shares during the period. Nuveen LLC purchased a new stake in shares of Fortinet during the first quarter worth about $153,576,000. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC raised its position in shares of Fortinet by 17.1% during the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 7,016,467 shares of the software maker's stock worth $675,405,000 after purchasing an additional 1,026,277 shares during the last quarter. Finally, AustralianSuper Pty Ltd lifted its stake in Fortinet by 127.6% in the 1st quarter. AustralianSuper Pty Ltd now owns 1,496,339 shares of the software maker's stock valued at $144,038,000 after buying an additional 839,028 shares in the last quarter. Institutional investors and hedge funds own 83.71% of the company's stock.

Fortinet Trading Down 0.6%

NASDAQ:FTNT opened at $85.79 on Monday. Fortinet, Inc. has a 12-month low of $70.12 and a 12-month high of $114.82. The firm has a market cap of $65.74 billion, a PE ratio of 34.18, a price-to-earnings-growth ratio of 3.24 and a beta of 1.09. 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 moving average price of $83.35 and a 200 day moving average price of $95.04.

Fortinet (NASDAQ:FTNT - Get Free Report) last posted its quarterly earnings results on Wednesday, August 6th. The software maker reported $0.64 earnings per share (EPS) for the quarter, beating 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 analyst estimates of $1.63 billion. During the same quarter last year, the company earned $0.57 EPS. Fortinet's revenue for the quarter was up 13.6% compared to the same quarter last year. Sell-side analysts anticipate that Fortinet, Inc. will post 2.09 earnings per share for the current fiscal year.

Insider Buying and Selling

In other news, CEO Ken Xie sold 158,486 shares of the firm's stock in a transaction on Monday, August 4th. The shares were sold at an average price of $98.48, for a total value of $15,607,701.28. Following the sale, the chief executive officer directly owned 51,391,879 shares in the company, valued at approximately $5,061,072,243.92. This trade represents a 0.31% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, VP Michael Xie sold 476,596 shares of Fortinet stock in a transaction on Monday, August 4th. The stock was sold at an average price of $98.48, for a total transaction of $46,935,174.08. Following the sale, the vice president directly owned 9,730,560 shares of the company's stock, valued at approximately $958,265,548.80. This trade represents a 4.67% decrease in their ownership of the stock. The disclosure for this sale can be found here. Corporate insiders own 18.00% of the company's stock.

Analyst Upgrades and Downgrades

FTNT has been the subject of several research reports. Evercore ISI dropped their price target on Fortinet from $105.00 to $78.00 and set an "in-line" rating for the company in a research report on Friday, August 8th. Wedbush dropped their target price on shares of Fortinet from $120.00 to $100.00 and set an "outperform" rating for the company in a report on Thursday, August 7th. Truist Financial decreased their price target on shares of Fortinet from $125.00 to $95.00 and set a "buy" rating on the stock in a research note on Thursday, August 7th. Stifel Nicolaus dropped their price objective on shares of Fortinet from $95.00 to $85.00 and set a "hold" rating for the company in a research note on Thursday, August 7th. Finally, Morgan Stanley reissued an "underweight" rating and issued a $67.00 target price (down from $78.00) on shares of Fortinet in a research note on Tuesday, September 2nd. Two analysts have rated the stock with a Strong Buy rating, eight have assigned a Buy rating, twenty-six have assigned a Hold rating and two have issued a Sell rating to the company. According to data from MarketBeat, the company currently has a consensus rating of "Hold" and an average target price of $97.03.

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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