Fortinet (NASDAQ:FTNT) Stock Price Down 2.8% - Should You Sell?

Key Points

• Fortinet's stock price fell 2.8%, trading as low as $78.76, with a current average target price of $97.40 from analysts.
• Recent analyst reports include upgrades to buy from DZ Bank and reductions in target prices from Royal Bank of Canada and Scotiabank.
• Fortinet reported $0.64 earnings per share for the quarter, surpassing analyst expectations of $0.59, with a year-over-year revenue growth of 13.6%.

Fortinet, Inc. (NASDAQ:FTNT - Get Free Report)'s stock price dropped 2.8% during mid-day trading on Tuesday . The stock traded as low as $78.76 and last traded at $78.51. Approximately 5,336,341 shares traded hands during trading, a decline of 2% from the average daily volume of 5,433,950 shares. The stock had previously closed at $80.76.

Analysts Set New Price Targets

FTNT has been the topic of a number of recent analyst reports. DZ Bank upgraded Fortinet from a "hold" rating to a "buy" rating and set a $85.00 price objective on the stock in a research note on Friday, August 8th. Royal Bank Of Canada reduced their target price on shares of Fortinet from $110.00 to $95.00 and set a "sector perform" rating for the company in a research note on Thursday, August 7th. Cantor Fitzgerald increased their price target on shares of Fortinet from $100.00 to $110.00 and gave the company a "neutral" rating in a report on Wednesday, July 16th. KeyCorp lowered shares of Fortinet from an "overweight" rating to a "sector weight" rating in a research report on Thursday, August 7th. Finally, Scotiabank lowered their target price on shares of Fortinet from $115.00 to $85.00 and set a "sector outperform" rating for the company in a research note on Thursday, August 7th. Two analysts have rated the stock with a Strong Buy rating, eight have given a Buy rating, twenty-five have given a Hold rating and two have given a Sell rating to the company. Based on data from MarketBeat, the stock presently has an average rating of "Hold" and a consensus target price of $97.40.

Fortinet Trading Down 4.2%

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 company has a market cap of $59.26 billion, a P/E ratio of 30.87, a PEG ratio of 3.00 and a beta of 1.07. The business has a 50 day moving average price of $98.80 and a 200-day moving average price of $100.77.

Fortinet (NASDAQ:FTNT - Get Free Report) last issued its earnings results on Wednesday, August 6th. The software maker reported $0.64 earnings per share 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 firm had revenue of $1.63 billion for the quarter, compared to the consensus estimate of $1.63 billion. During the same quarter last year, the business posted $0.57 EPS. The company's revenue was up 13.6% compared to the same quarter last year. Analysts forecast that Fortinet, Inc. will post 2.09 earnings per share for the current fiscal year.

Insider Buying and Selling at Fortinet

In related news, VP Michael Xie sold 476,596 shares of the firm's stock in a transaction that occurred on Monday, August 4th. The shares were sold at an average price of $98.48, for a total value of $46,935,174.08. Following the sale, the vice president owned 9,730,560 shares in the company, valued at approximately $958,265,548.80. This trade represents a 4.67% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, Director William H. Neukom purchased 335 shares of Fortinet stock in a transaction on Friday, June 6th. The stock was bought at an average price of $104.22 per share, for a total transaction of $34,913.70. Following the completion of the acquisition, the director owned 301,471 shares in the company, valued at $31,419,307.62. The trade was a 0.11% increase in their position. The disclosure for this purchase can be found here. Insiders own 18.00% of the company's stock.

Institutional Inflows and Outflows

Institutional investors have recently made changes to their positions in the business. Eagle Capital Management LLC raised its position in Fortinet by 1.6% during the 4th quarter. Eagle Capital Management LLC now owns 26,176 shares of the software maker's stock worth $2,473,000 after buying an additional 404 shares during the last quarter. Brighton Jones LLC lifted its position in shares of Fortinet by 2.2% during the fourth quarter. Brighton Jones LLC now owns 10,327 shares of the software maker's stock worth $976,000 after purchasing an additional 221 shares in the last quarter. NewEdge Advisors LLC raised its holdings in Fortinet by 50.5% in the fourth quarter. NewEdge Advisors LLC now owns 31,481 shares of the software maker's stock valued at $2,974,000 after acquiring an additional 10,562 shares in the last quarter. Freedom Investment Management Inc. increased its stake in Fortinet by 22.1% during the fourth quarter. Freedom Investment Management Inc. now owns 4,751 shares of the software maker's stock valued at $449,000 after purchasing an additional 861 shares during the last quarter. Finally, Dimensional Fund Advisors LP grew its position in shares of Fortinet by 19.5% during the fourth quarter. Dimensional Fund Advisors LP now owns 2,611,461 shares of the software maker's stock worth $246,743,000 after acquiring an additional 426,616 shares during the last quarter. Institutional investors and hedge funds own 83.71% of the company's stock.

About Fortinet

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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