Rosenblatt Securities Reaffirms Buy Rating for Fortinet (NASDAQ:FTNT)

Key Points

• Rosenblatt Securities has restated their "buy" rating for Fortinet (NASDAQ:FTNT) and set a target price of $125.00, indicating a potential upside of 19.25% from its previous close.
• Wells Fargo, KeyCorp, Royal Bank of Canada, and UBS Group have all reduced their price targets on Fortinet, reflecting a cautious outlook with a consensus rating of "Hold" among analysts.
• Fortinet reported a net margin of 30.60% and earnings per share (EPS) of $0.58, exceeding expectations, with a revenue increase of 13.8% year-over-year.

Fortinet (NASDAQ:FTNT - Get Free Report)'s stock had its "buy" rating restated by analysts at Rosenblatt Securities in a research report issued on Monday,Benzinga reports. They currently have a $125.00 target price on the software maker's stock. Rosenblatt Securities' price objective would indicate a potential upside of 19.18% from the company's previous close.

A number of other research firms also recently weighed in on FTNT. Barclays set a $110.00 target price on Fortinet and gave the stock an "equal weight" rating in a research report on Monday, July 14th. Morgan Stanley decreased their price target on Fortinet from $123.00 to $105.00 and set an "overweight" rating on the stock in a research note on Wednesday, April 16th. Cantor Fitzgerald boosted their target price on Fortinet from $100.00 to $110.00 and gave the company a "neutral" rating in a research note on Wednesday, July 16th. Stephens initiated coverage on Fortinet in a research note on Tuesday, April 1st. They set an "equal weight" rating and a $108.00 target price on the stock. Finally, Stifel Nicolaus dropped their price target on Fortinet from $115.00 to $95.00 and set a "hold" rating on the stock in a research report on Thursday, May 8th. One investment analyst has rated the stock with a sell rating, twenty have given a hold rating, twelve have issued a buy rating and two have issued a strong buy rating to the company. According to MarketBeat.com, the stock presently has a consensus rating of "Hold" and a consensus target price of $107.00.

Fortinet Stock Performance

FTNT traded up $0.06 during trading hours on Monday, hitting $104.88. The stock had a trading volume of 2,128,329 shares, compared to its average volume of 3,793,362. The company's fifty day simple moving average is $103.48 and its 200 day simple moving average is $101.72. Fortinet has a 1 year low of $54.57 and a 1 year high of $114.82. The stock has a market cap of $80.28 billion, a PE ratio of 43.16, a price-to-earnings-growth ratio of 3.61 and a beta of 1.06. The company has a quick ratio of 1.29, a current ratio of 1.36 and a debt-to-equity ratio of 0.25.

Fortinet (NASDAQ:FTNT - Get Free Report) last issued its earnings results on Wednesday, May 7th. The software maker reported $0.58 EPS for the quarter, topping the consensus estimate of $0.53 by $0.05. Fortinet had a return on equity of 148.79% and a net margin of 30.60%. The business had revenue of $1.54 billion during the quarter, compared to the consensus estimate of $1.54 billion. During the same quarter last year, the company earned $0.43 EPS. The firm's revenue was up 13.8% compared to the same quarter last year. Equities analysts anticipate that Fortinet will post 2.09 earnings per share for the current year.

Insider Transactions at Fortinet

In related news, VP Michael Xie sold 3,546 shares of the stock in a transaction on Friday, May 2nd. The stock was sold at an average price of $106.11, for a total value of $376,266.06. Following the transaction, the vice president owned 11,000,068 shares of the company's stock, valued at $1,167,217,215.48. This represents a 0.03% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through this hyperlink. Also, Director William H. Neukom bought 335 shares of the company's stock in a transaction that occurred on Friday, June 6th. The stock was acquired at an average cost of $104.22 per share, for a total transaction of $34,913.70. Following the acquisition, the director directly owned 301,471 shares of the company's stock, valued at $31,419,307.62. The trade was a 0.11% increase in their ownership of the stock. The disclosure for this purchase can be found here. Corporate insiders own 18.00% of the company's stock.

Institutional Trading of Fortinet

A number of hedge funds and other institutional investors have recently made changes to their positions in FTNT. Vanguard Group Inc. increased its position in shares of Fortinet by 5.2% during the first quarter. Vanguard Group Inc. now owns 71,662,404 shares of the software maker's stock worth $6,898,223,000 after purchasing an additional 3,546,934 shares in the last quarter. FMR LLC boosted its holdings in Fortinet by 77.2% in the 4th quarter. FMR LLC now owns 6,531,705 shares of the software maker's stock valued at $617,115,000 after purchasing an additional 2,846,475 shares in the last quarter. Bessemer Group Inc. boosted its holdings in Fortinet by 72.6% in the 4th quarter. Bessemer Group Inc. now owns 4,906,439 shares of the software maker's stock valued at $463,561,000 after purchasing an additional 2,064,016 shares in the last quarter. Invesco Ltd. boosted its holdings in Fortinet by 31.3% in the 4th quarter. Invesco Ltd. now owns 8,388,693 shares of the software maker's stock valued at $792,564,000 after purchasing an additional 2,000,888 shares in the last quarter. Finally, GAMMA Investing LLC boosted its holdings in Fortinet by 11,349.3% in the 1st quarter. GAMMA Investing LLC now owns 1,927,607 shares of the software maker's stock valued at $185,551,000 after purchasing an additional 1,910,771 shares in the last quarter. Institutional investors and hedge funds own 83.71% of the company's stock.

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.