Fortinet (NASDAQ:FTNT) CEO Sells $476,059.50 in Stock

Key Points

• Fortinet CEO Ken Xie sold 5,355 shares on May 4 for $88.90 each (total $476,059.50) under a pre‑arranged Rule 10b5‑1 plan to cover tax withholding, leaving him with 52,978,004 shares (a 0.01% ownership decrease).
• Company performance and outlook: Fortinet beat quarterly estimates (EPS $0.81 vs $0.74; revenue $1.91B vs $1.86B), set Q1 2026 guidance of $0.590–0.630 and FY2026 of $2.940–3.000 EPS, but analysts remain cautious with an average "Hold" rating and a $88.38 target amid valuation/growth concerns.

Fortinet, Inc. (NASDAQ:FTNT - Get Free Report) 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 transaction, the chief executive officer directly owned 52,978,004 shares in the company, valued at $4,709,744,555.60. This trade represents a 0.01% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed 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.

Fortinet Price Performance

NASDAQ:FTNT traded up $0.68 during mid-day trading on Tuesday, reaching $89.92. The stock had a trading volume of 3,962,339 shares, compared to its average volume of 6,434,550. The stock has a 50-day simple moving average of $81.83 and a two-hundred day simple moving average of $81.72. The stock has a market capitalization of $65.83 billion, a PE ratio of 37.00, a P/E/G ratio of 2.96 and a beta of 0.92. The company has a debt-to-equity ratio of 0.40, a current ratio of 1.17 and a quick ratio of 1.09. Fortinet, Inc. has a 12 month low of $70.12 and a 12 month high of $108.77.

Fortinet (NASDAQ:FTNT - Get Free Report) last announced its quarterly earnings data on Thursday, February 5th. The software maker reported $0.81 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.74 by $0.07. The business had revenue of $1.91 billion for the quarter, compared to analysts' expectations of $1.86 billion. Fortinet had a net margin of 27.26% and a return on equity of 124.21%. The firm's quarterly revenue was up 14.8% compared to the same quarter last year. During the same period last year, the firm posted $0.74 earnings per share. Fortinet has set its Q1 2026 guidance at 0.590-0.630 EPS and its FY 2026 guidance at 2.940-3.000 EPS. On average, equities analysts anticipate that Fortinet, Inc. will post 2.63 earnings per share for the current year.

Fortinet News Summary

Here are the key news stories impacting Fortinet this week:

• Positive Sentiment: BMO Capital Markets raised its price target (to $100) and issued a positive/market-perform outlook, giving investors a near-term valuation cushion and supporting buying interest. BMO Capital Markets Issues Positive Forecast for Fortinet
• Positive Sentiment: Pre-earnings positioning and product/security momentum lifted shares—Fortinet released its 2026 Global Threat Landscape report (highlighting AI-enabled threats) and increased visibility at major cybersecurity events, which can drive enterprise demand for Fortinet’s SASE and security platform. Fortinet jumps 3% as investors position for upcoming earnings and recent security-focused updates
• Neutral Sentiment: FTNT heads into Q1 earnings with steady growth expectations and ongoing SASE traction; the report is a likely catalyst but guidance sensitivity and macro risks could limit surprise upside. Fortinet Set to Report Q1 Earnings: What's in Store for the Stock?
• Neutral Sentiment: Brokerage coverage remains centered on “hold/market perform” views overall, leaving analyst consensus cautious despite pockets of upside. That moderates conviction for fresh, large-scale buys. Fortinet Given Average Rating of "Hold" by Brokerages
• Negative Sentiment: Valuation and cooling growth commentary from market analysts highlight stretched multiples versus slower near-term growth, which can cap multiple expansion and make the stock sensitive to any guidance softness. A Look At Fortinet (FTNT) Valuation As Growth Cools
• Negative Sentiment: Significant insider selling over recent months and a mix of recent underweight/underperform analyst calls increase downside risk if earnings or guidance disappoint. Investors should watch Q1 results and any forward-guide changes closely. Fortinet jumps 3% as investors position for upcoming earnings and recent security-focused updates

Hedge Funds Weigh In On Fortinet

A number of hedge funds have recently modified their holdings of FTNT. Norges Bank acquired a new position in shares of Fortinet during the fourth quarter worth $1,152,917,000. Vanguard Group Inc. boosted its position in shares of Fortinet by 4.0% during the 3rd quarter. Vanguard Group Inc. now owns 75,581,275 shares of the software maker's stock worth $6,354,874,000 after purchasing an additional 2,894,355 shares in the last quarter. Van ECK Associates Corp raised its holdings in shares of Fortinet by 38.9% in the 4th quarter. Van ECK Associates Corp now owns 7,730,954 shares of the software maker's stock worth $613,915,000 after acquiring an additional 2,166,396 shares during the last quarter. First Trust Advisors LP raised its holdings in shares of Fortinet by 30.9% in the 3rd quarter. First Trust Advisors LP now owns 7,575,662 shares of the software maker's stock worth $636,962,000 after acquiring an additional 1,790,033 shares during the last quarter. Finally, AQR Capital Management LLC raised its holdings in shares of Fortinet by 76.2% in the 4th quarter. AQR Capital Management LLC now owns 4,109,016 shares of the software maker's stock worth $326,297,000 after acquiring an additional 1,777,115 shares during the last quarter. Institutional investors and hedge funds own 83.71% of the company's stock.

Analyst Upgrades and Downgrades

FTNT has been the topic of a number of research reports. Stifel Nicolaus set a $85.00 target price on shares of Fortinet in a research note on Wednesday, March 11th. Scotiabank cut shares of Fortinet from a "sector outperform" rating to a "sector perform" rating and set a $85.00 target price on the stock. in a research note on Monday, February 2nd. Royal Bank Of Canada reaffirmed a "sector perform" rating and set a $90.00 target price (up from $85.00) on shares of Fortinet in a research note on Friday, February 6th. Jefferies Financial Group set a $90.00 target price on shares of Fortinet in a research note on Friday, February 6th. Finally, Wells Fargo & Company initiated coverage on shares of Fortinet in a research note on Tuesday, March 3rd. They set an "underweight" rating and a $64.00 target price on the stock. One equities research analyst has rated the stock with a Strong Buy rating, five have assigned a Buy rating, twenty-one have assigned a Hold rating and four have assigned a Sell rating to the company's stock. According to data from MarketBeat, Fortinet currently has an average rating of "Hold" and an average target price of $88.38.

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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