Tandem Investment Advisors Inc. Grows Stake in Fortinet, Inc. $FTNT

Key Points

• Tandem Investment Advisors boosted its Fortinet stake by 35.9% in the fourth quarter, buying 11,962 additional shares and bringing its total holding to 45,243 shares worth about $3.59 million.
• Fortinet reported strong quarterly results, with EPS of $0.82 versus $0.62 expected and revenue of $1.85 billion versus $1.73 billion expected; revenue rose 20.1% year over year.
• Insiders sold shares during the period, including VP Michael Xie and CEO Ken Xie, while analysts remained mixed overall with a consensus rating of “Hold” and an average price target of $101.83.

Tandem Investment Advisors Inc. increased its stake in shares of Fortinet, Inc. (NASDAQ:FTNT - Free Report) by 35.9% in the 4th quarter, according to the company in its most recent filing with the Securities & Exchange Commission. The fund owned 45,243 shares of the software maker's stock after purchasing an additional 11,962 shares during the period. Tandem Investment Advisors Inc.'s holdings in Fortinet were worth $3,593,000 as of its most recent filing with the Securities & Exchange Commission.

Other institutional investors also recently bought and sold shares of the company. Trilogy Capital Inc. lifted its holdings in Fortinet by 46.8% in the 4th quarter. Trilogy Capital Inc. now owns 44,152 shares of the software maker's stock valued at $3,506,000 after purchasing an additional 14,076 shares in the last quarter. Machina Capital S.A.S. purchased a new stake in shares of Fortinet during the third quarter worth $1,177,000. Leonteq Securities AG acquired a new stake in shares of Fortinet in the fourth quarter valued at about $10,422,000. Victory Capital Management Inc. raised its position in shares of Fortinet by 5.8% in the third quarter. Victory Capital Management Inc. now owns 1,651,683 shares of the software maker's stock valued at $138,874,000 after buying an additional 90,284 shares during the last quarter. Finally, North Dakota State Investment Board purchased a new position in shares of Fortinet in the fourth quarter worth about $1,732,000. 83.71% of the stock is currently owned by institutional investors and hedge funds.

Insiders Place Their Bets

In other news, VP Michael Xie sold 2,478 shares of the company's stock in a transaction that occurred on Monday, May 4th. The shares were sold at an average price of $88.89, for a total value of $220,269.42. Following the transaction, the vice president directly owned 9,927,517 shares in the company, valued at approximately $882,456,986.13. This represents a 0.02% decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. 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, CEO Ken Xie sold 5,355 shares of Fortinet stock in a transaction that occurred on Monday, May 4th. The shares were sold at an average price of $88.90, for a total transaction of $476,059.50. Following the completion of the sale, the chief executive officer owned 52,978,004 shares of the company's stock, valued at $4,709,744,555.60. This trade represents a 0.01% decrease in their position. The disclosure for this sale is available in the SEC filing. 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. Insiders sold a total of 153,848 shares of company stock valued at $19,446,115 over the last 90 days. 17.60% of the stock is owned by company insiders.

Fortinet Price Performance

NASDAQ:FTNT opened at $133.93 on Tuesday. Fortinet, Inc. has a 52 week low of $70.12 and a 52 week high of $134.19. The stock's fifty day moving average is $93.06 and its two-hundred day moving average is $85.25. The company has a market capitalization of $98.12 billion, a P/E ratio of 51.71, a P/E/G ratio of 3.68 and a beta of 0.92. 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 (NASDAQ:FTNT - Get Free Report) last released its quarterly earnings results on Wednesday, May 6th. The software maker reported $0.82 earnings per share for the quarter, topping analysts' consensus estimates of $0.62 by $0.20. The business had revenue of $1.85 billion during the quarter, compared to analysts' expectations of $1.73 billion. Fortinet had a return on equity of 160.08% and a net margin of 27.49%.The company's revenue was up 20.1% compared to the same quarter last year. During the same period in the prior year, the business posted $0.58 EPS. Fortinet has set its Q2 2026 guidance at 0.720-0.760 EPS and its FY 2026 guidance at 3.100-3.160 EPS. Equities analysts expect that Fortinet, Inc. will post 2.77 EPS for the current year.

Analyst Ratings Changes

Several analysts recently issued reports on the stock. Royal Bank Of Canada reaffirmed a "sector perform" rating and set a $107.00 price objective (up from $90.00) on shares of Fortinet in a research note on Thursday, May 7th. JPMorgan Chase & Co. boosted their target price on Fortinet from $73.00 to $75.00 and gave the stock an "underweight" rating in a report on Thursday, May 7th. Stephens set a $115.00 price target on Fortinet and gave the company an "equal weight" rating in a research report on Thursday, May 7th. TD Cowen reissued a "buy" rating and set a $125.00 price objective (up from $100.00) on shares of Fortinet in a research note on Thursday, May 7th. Finally, Susquehanna upped their target price on Fortinet from $90.00 to $115.00 and gave the company a "neutral" rating in a report on Friday, May 8th. Two analysts have rated the stock with a Strong Buy rating, five have given a Buy rating, twenty-four have given a Hold rating and four have given a Sell rating to the company. According to MarketBeat.com, the company presently has an average rating of "Hold" and a consensus target price of $101.83.

Fortinet Company 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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