According to Zacks, “Fortinet is a provider of network security appliances and Unified Threat Management network security solutions to enterprises, service providers and government entities worldwide. The company’s recent downbeat guidance for third-quarter 2016 makes us increasingly cautious about its near-term performance. Fortinet cited a longer sales cycle and weakness in North America as the major reasons for outlook cut. Furthermore, for the past few quarters, the company has been witnessing increase in operating expenses due to stepped-up investments in research and development, and marketing strategies which have been offsetting the benefit of higher revenues. Moreover, intensifying competition and uncertain macroeconomic environment add to its woes.”
FTNT has been the subject of several other reports. Dougherty & Co reduced their price objective on Fortinet from $40.00 to $35.00 and set a buy rating for the company in a research note on Wednesday, October 12th. Wells Fargo & Co. reissued an outperform rating and issued a $37.00 price objective (down from $43.50) on shares of Fortinet in a research note on Thursday, October 13th. Pacific Crest raised Fortinet from a sector weight rating to an overweight rating and set a $47.00 price objective for the company in a research note on Tuesday, August 30th. Citigroup Inc. reduced their price objective on Fortinet from $35.00 to $31.00 and set a neutral rating for the company in a research note on Wednesday, October 12th. Finally, Piper Jaffray Cos. set a $30.00 price objective on Fortinet and gave the stock a hold rating in a research note on Wednesday, October 12th. One research analyst has rated the stock with a sell rating, eleven have assigned a hold rating and seventeen have given a buy rating to the stock. Fortinet currently has an average rating of Buy and an average target price of $36.16.
Fortinet (NASDAQ:FTNT) opened at 30.99 on Friday. Fortinet has a 12 month low of $23.16 and a 12 month high of $44.63. The firm has a market capitalization of $5.35 billion, a price-to-earnings ratio of 837.57 and a beta of 1.62. The firm has a 50 day moving average price of $35.31 and a 200-day moving average price of $33.69.
Fortinet (NASDAQ:FTNT) last announced its quarterly earnings data on Thursday, July 28th. The company reported $0.14 earnings per share (EPS) for the quarter, hitting the consensus estimate of $0.14. The firm earned $311.40 million during the quarter, compared to the consensus estimate of $304.71 million. Fortinet had a return on equity of 0.68% and a net margin of 0.07%. The business’s revenue for the quarter was up 29.9% on a year-over-year basis. During the same period in the prior year, the business earned $0.11 EPS. On average, equities analysts forecast that Fortinet will post $0.70 EPS for the current year.
In other Fortinet news, CFO Matto Andrew H. Del sold 3,250 shares of the firm’s stock in a transaction that occurred on Thursday, September 1st. The stock was sold at an average price of $36.29, for a total value of $117,942.50. Following the completion of the sale, the chief financial officer now owns 9,686 shares in the company, valued at approximately $351,504.94. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, VP John Whittle sold 834 shares of the firm’s stock in a transaction that occurred on Thursday, September 1st. The stock was sold at an average price of $36.70, for a total value of $30,607.80. Following the completion of the sale, the vice president now owns 5,515 shares of the company’s stock, valued at approximately $202,400.50. The disclosure for this sale can be found here. 16.40% of the stock is owned by company insiders.
Hedge funds have recently made changes to their positions in the company. Fox Run Management L.L.C. purchased a new stake in shares of Fortinet during the third quarter worth approximately $1,027,000. Oregon Public Employees Retirement Fund increased its stake in shares of Fortinet by 1.2% in the third quarter. Oregon Public Employees Retirement Fund now owns 50,730 shares of the company’s stock worth $1,873,000 after buying an additional 606 shares in the last quarter. Mason Street Advisors LLC purchased a new stake in shares of Fortinet during the second quarter worth approximately $2,102,000. Aldebaran Financial Inc. increased its stake in shares of Fortinet by 3.5% in the second quarter. Aldebaran Financial Inc. now owns 89,270 shares of the company’s stock worth $2,987,000 after buying an additional 3,050 shares in the last quarter. Finally, Public Employees Retirement System of Ohio increased its stake in shares of Fortinet by 1.1% in the second quarter. Public Employees Retirement System of Ohio now owns 97,022 shares of the company’s stock worth $3,065,000 after buying an additional 1,073 shares in the last quarter. Institutional investors own 70.63% of the company’s stock.
Fortinet Company Profile
Fortinet, Inc provides cyber security solutions to enterprises, service providers and government organizations across the world. The Company’s flagship network security solution consists of FortiGate physical, virtual machine and cloud platforms, which provide integrated security and networking functions to protect data, applications and users from network-and content-level security threats.
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