Zacks Investment Research lowered shares of Fortinet (NASDAQ:FTNT) from a buy rating to a hold rating in a research note released on Friday, March 9th.
According to Zacks, “Fortinet reported better-than-expected fourth-quarter 2017 results. The year over year comparisons were also favorable on both the counts. Notably, Fortinet has outperformed the industry in the last one year. Going ahead, we believe that the company’s strategy of focusing on selling subscription-based services will enable it to generate more stable revenues and help in expanding margins. Furthermore, acquisitions are a major positive for Fortinet as these help it to strengthen its product portfolio and capabilities, thereby boosting its top-line performance. Nonetheless, we are slightly concerned over the company’s declining revenue growth rate. Notably, over the last six quarters, the company’s revenue growth rates have been around 20%, which are significantly lower than its previous rates of over 30%. Also, a tepid first quarter revenue outlook makes us slightly cautious about its near-term performance.”
Several other equities analysts have also recently issued reports on the company. Robert W. Baird boosted their target price on Fortinet from $50.00 to $56.00 and gave the stock an outperform rating in a research report on Thursday, January 11th. BidaskClub cut Fortinet from a strong-buy rating to a buy rating in a research report on Thursday, December 7th. JMP Securities boosted their target price on Fortinet from $41.00 to $54.00 and gave the stock a market outperform rating in a research report on Friday, January 26th. JPMorgan Chase lowered Fortinet from an overweight rating to a neutral rating and set a $50.00 price target on the stock. in a research note on Tuesday, December 12th. Finally, Morgan Stanley boosted their price target on Fortinet from $51.00 to $53.00 and gave the stock an overweight rating in a research note on Tuesday, February 6th. One analyst has rated the stock with a sell rating, twelve have given a hold rating, thirteen have issued a buy rating and two have given a strong buy rating to the company. The stock currently has an average rating of Buy and a consensus price target of $50.13.
Shares of FTNT traded down $1.15 during midday trading on Friday, reaching $52.43. 954,334 shares of the stock were exchanged, compared to its average volume of 1,716,610. Fortinet has a twelve month low of $35.44 and a twelve month high of $55.34. The stock has a market capitalization of $9,002.74, a P/E ratio of 100.83, a price-to-earnings-growth ratio of 4.30 and a beta of 0.71.
Fortinet (NASDAQ:FTNT) last issued its quarterly earnings results on Monday, February 5th. The software maker reported $0.32 earnings per share (EPS) for the quarter, beating the Thomson Reuters’ consensus estimate of $0.29 by $0.03. The firm had revenue of $416.70 million for the quarter, compared to analysts’ expectations of $409.04 million. Fortinet had a return on equity of 11.77% and a net margin of 2.10%. The firm’s revenue for the quarter was up 14.9% on a year-over-year basis. During the same quarter in the previous year, the firm posted $0.30 EPS. equities research analysts forecast that Fortinet will post 0.74 earnings per share for the current fiscal year.
In related news, CEO Ken Xie sold 89,423 shares of the stock in a transaction on Thursday, February 8th. The stock was sold at an average price of $45.08, for a total value of $4,031,188.84. Following the completion of the sale, the chief executive officer now directly owns 12,608,811 shares in the company, valued at approximately $568,405,199.88. The sale was disclosed in a legal filing with the SEC, which can be accessed through the SEC website. Also, VP John Whittle sold 624 shares of the stock in a transaction on Monday, March 12th. The shares were sold at an average price of $54.44, for a total value of $33,970.56. The disclosure for this sale can be found here. Over the last 90 days, insiders have sold 156,190 shares of company stock valued at $7,114,541. Insiders own 17.00% of the company’s stock.
A number of hedge funds and other institutional investors have recently made changes to their positions in the stock. Alyeska Investment Group L.P. purchased a new position in Fortinet in the 3rd quarter valued at about $14,293,000. Bank of New York Mellon Corp boosted its position in Fortinet by 8.6% in the 3rd quarter. Bank of New York Mellon Corp now owns 3,752,012 shares of the software maker’s stock valued at $134,472,000 after buying an additional 296,648 shares during the last quarter. Cornerstone Capital Management Holdings LLC. boosted its position in Fortinet by 179.4% in the 3rd quarter. Cornerstone Capital Management Holdings LLC. now owns 450,252 shares of the software maker’s stock valued at $16,135,000 after buying an additional 289,086 shares during the last quarter. Ameriprise Financial Inc. boosted its position in Fortinet by 7.0% in the 3rd quarter. Ameriprise Financial Inc. now owns 4,400,011 shares of the software maker’s stock valued at $157,693,000 after buying an additional 288,097 shares during the last quarter. Finally, Guggenheim Capital LLC boosted its position in Fortinet by 147.4% in the 4th quarter. Guggenheim Capital LLC now owns 432,467 shares of the software maker’s stock valued at $18,895,000 after buying an additional 257,687 shares during the last quarter. Hedge funds and other institutional investors own 68.76% of the company’s stock.
Fortinet Company Profile
Fortinet, Inc is a network security company. The Company provides cyber security solutions to a range of enterprises, service providers and government organizations across the world. Its 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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