Royal Bank of Canada Sells 569,216 Shares of Fortinet, Inc. $FTNT

Royal Bank of Canada reduced its stake in Fortinet, Inc. (NASDAQ:FTNT - Free Report) by 22.4% during the 1st quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The firm owned 1,974,224 shares of the software maker's stock after selling 569,216 shares during the quarter. Royal Bank of Canada owned about 0.27% of Fortinet worth $161,334,000 at the end of the most recent reporting period.

A number of other large investors also recently made changes to their positions in FTNT. Empowered Funds LLC increased its position in Fortinet by 108.3% during the 1st quarter. Empowered Funds LLC now owns 157,306 shares of the software maker's stock worth $12,855,000 after buying an additional 81,778 shares during the period. KCM Investment Advisors LLC boosted its position in shares of Fortinet by 3.0% in the first quarter. KCM Investment Advisors LLC now owns 41,857 shares of the software maker's stock valued at $3,421,000 after acquiring an additional 1,204 shares during the period. Glen Eagle Advisors LLC boosted its position in shares of Fortinet by 15,481.0% in the first quarter. Glen Eagle Advisors LLC now owns 15,581 shares of the software maker's stock valued at $1,273,000 after acquiring an additional 15,481 shares during the period. Quantinno Capital Management LP grew its stake in shares of Fortinet by 2.3% in the first quarter. Quantinno Capital Management LP now owns 541,153 shares of the software maker's stock valued at $44,223,000 after acquiring an additional 12,394 shares in the last quarter. Finally, Ardmore Road Asset Management LP grew its stake in shares of Fortinet by 18.2% in the first quarter. Ardmore Road Asset Management LP now owns 321,200 shares of the software maker's stock valued at $26,248,000 after acquiring an additional 49,452 shares in the last quarter. Institutional investors own 83.71% of the company's stock.

Key Headlines Impacting Fortinet

Here are the key news stories impacting Fortinet this week:

• Positive Sentiment: Fortinet reported adjusted earnings of $0.90 per share, exceeding the $0.75 consensus estimate, while revenue rose 26% year over year to $2.05 billion, above expectations of $1.89 billion. Fortinet Q2 Earnings Snapshot
• Positive Sentiment: Product revenue surged 52% to $773 million, billings increased 33% to $2.37 billion, and management cited strong demand for AI infrastructure, SASE, firewall and operational-technology security products. FTNT Q2 Earnings Call Highlights
• Positive Sentiment: Fortinet raised fiscal-year 2026 revenue guidance to approximately $8.0 billion-$8.2 billion and EPS guidance to $3.41-$3.47. Third-quarter revenue guidance of $2.01 billion-$2.10 billion and EPS guidance of $0.83-$0.87 also exceed Wall Street estimates. Fortinet Raises Revenue Outlook
• Positive Sentiment: Wall Street became more constructive after the results: BTIG raised its target to $203 with a Buy rating, Rosenblatt lifted its target to $195 with a Buy rating, and Citigroup increased its target to $185 while maintaining Neutral. Analysts Boost Forecasts
• Neutral Sentiment: William Blair maintained a Hold rating, acknowledging strong execution and pricing tailwinds but questioning how durable the acceleration will be. William Blair Maintains Hold
• Negative Sentiment: Some valuation analysis suggests FTNT shares look expensive after a roughly 152% five-year advance, leaving the stock vulnerable if growth or product momentum slows. Fortinet Valuation Analysis

Analyst Upgrades and Downgrades

Several analysts have weighed in on the stock. TD Cowen reiterated a "buy" rating and issued a $215.00 price objective (up from $160.00) on shares of Fortinet in a research note on Monday, July 13th. Wall Street Zen lowered shares of Fortinet from a "buy" rating to a "hold" rating in a research report on Sunday, July 26th. Citigroup raised their target price on shares of Fortinet from $165.00 to $185.00 and gave the stock a "neutral" rating in a report on Thursday. Scotiabank reiterated a "sector perform" rating and issued a $163.00 price target on shares of Fortinet in a research report on Thursday. Finally, Weiss Ratings upgraded Fortinet from a "hold (c)" rating to a "hold (c+)" rating in a research note on Thursday, June 11th. Two analysts have rated the stock with a Strong Buy rating, ten have assigned a Buy rating, twenty-three have given a Hold rating and four have given a Sell rating to the company's stock. According to data from MarketBeat, the stock currently has an average rating of "Hold" and a consensus price target of $149.55.

Fortinet Trading Up 0.7%

Shares of Fortinet stock opened at $154.25 on Friday. The company has a market capitalization of $113.01 billion, a price-to-earnings ratio of 54.31, a PEG ratio of 4.17 and a beta of 1.09. The company has a quick ratio of 1.07, a current ratio of 1.15 and a debt-to-equity ratio of 0.50. Fortinet, Inc. has a 12-month low of $70.12 and a 12-month high of $170.35. The firm's 50-day moving average price is $149.94 and its two-hundred day moving average price is $108.72.

Fortinet (NASDAQ:FTNT - Get Free Report) last issued its earnings results on Wednesday, July 29th. The software maker reported $0.90 EPS for the quarter, beating the consensus estimate of $0.75 by $0.15. Fortinet had a net margin of 28.17% and a return on equity of 218.88%. The company had revenue of $2.05 billion during the quarter, compared to analysts' expectations of $1.89 billion. During the same period in the previous year, the company earned $0.64 EPS. The business's revenue for the quarter 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. On average, analysts forecast that Fortinet, Inc. will post 2.8 earnings per share for the current fiscal year.

Insider Buying and Selling at Fortinet

In other Fortinet news, CEO Ken Xie sold 160,632 shares of the business's stock in a transaction that occurred on Tuesday, June 2nd. The shares were sold at an average price of $145.58, for a total transaction of $23,384,806.56. Following the completion of the transaction, the chief executive officer directly owned 52,972,372 shares in the company, valued at $7,711,717,915.76. The trade was a 0.30% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, COO John Whittle sold 146,015 shares of the company's stock in a transaction on Thursday, May 21st. The stock was sold at an average price of $128.41, for a total value of $18,749,786.15. Following the sale, the chief operating officer owned 94,724 shares of the company's stock, valued at $12,163,508.84. The trade was a 60.65% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 318,387 shares of company stock worth $43,403,063 over the last three months. Corporate insiders own 17.60% of the company's stock.

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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