Fortinet (NASDAQ:FTNT) was upgraded by Zacks Investment Research from a “hold” rating to a “buy” rating in a report issued on Monday. The brokerage presently has a $61.00 target price on the software maker’s stock. Zacks Investment Research‘s target price would suggest a potential upside of 11.58% from the stock’s previous close.
According to Zacks, “Estimates for Fortinet have remained stable of late. Notably, the company 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.”
FTNT has been the subject of a number of other reports. JPMorgan Chase & Co. cut Fortinet from an “overweight” rating to a “neutral” rating and set a $50.00 price objective for the company. in a research note on Tuesday, December 12th. Barclays lifted their price objective on Fortinet from $48.00 to $50.00 and gave the stock an “equal weight” rating in a research note on Tuesday, February 6th. Monness Crespi & Hardt reiterated a “buy” rating and set a $56.00 target price (up from $50.00) on shares of Fortinet in a report on Wednesday, February 28th. Deutsche Bank lowered Fortinet from a “buy” rating to a “hold” rating and set a $46.00 target price on the stock. in a report on Tuesday, January 23rd. Finally, Citigroup lowered Fortinet from an “outperform” rating to a “market perform” rating in a report on Friday, January 26th. One analyst has rated the stock with a sell rating, eleven have given a hold rating, fourteen have given a buy rating and two have given a strong buy rating to the company’s stock. The stock presently has an average rating of “Buy” and an average target price of $48.96.
Fortinet (NASDAQ:FTNT) last announced its quarterly earnings data on Monday, February 5th. The software maker reported $0.32 EPS for the quarter, topping analysts’ consensus estimates of $0.29 by $0.03. Fortinet had a return on equity of 11.77% and a net margin of 2.10%. The business had revenue of $416.70 million during the quarter, compared to analysts’ expectations of $409.04 million. During the same period in the previous year, the firm earned $0.30 earnings per share. The firm’s quarterly revenue was up 14.9% compared to the same quarter last year. equities analysts predict that Fortinet will post 0.74 EPS for the current year.
In other news, VP John Whittle sold 679 shares of the business’s stock in a transaction dated Thursday, February 15th. The stock was sold at an average price of $48.69, for a total value of $33,060.51. Following the sale, the vice president now directly owns 8,684 shares in the company, valued at $422,823.96. The sale was disclosed in a filing with the SEC, which is accessible through the SEC website. Also, Director Christopher B. Paisley sold 4,000 shares of the business’s stock in a transaction dated Monday, February 12th. The shares were sold at an average price of $46.71, for a total value of $186,840.00. Following the completion of the sale, the director now owns 72,937 shares in the company, valued at $3,406,887.27. The disclosure for this sale can be found here. Over the last 90 days, insiders sold 169,315 shares of company stock worth $7,699,275. Corporate insiders own 17.00% of the company’s stock.
Several institutional investors have recently modified their holdings of the company. Dimensional Fund Advisors LP raised its holdings in Fortinet by 1.6% during the second quarter. Dimensional Fund Advisors LP now owns 259,916 shares of the software maker’s stock worth $9,732,000 after acquiring an additional 4,124 shares in the last quarter. Crossmark Global Holdings Inc. bought a new stake in Fortinet during the third quarter worth about $531,000. Victory Capital Management Inc. bought a new stake in Fortinet during the third quarter worth about $1,300,000. Canada Pension Plan Investment Board raised its holdings in Fortinet by 16.3% during the third quarter. Canada Pension Plan Investment Board now owns 64,100 shares of the software maker’s stock worth $2,297,000 after acquiring an additional 9,000 shares in the last quarter. Finally, Andra AP fonden raised its holdings in Fortinet by 36.1% during the third quarter. Andra AP fonden now owns 36,200 shares of the software maker’s stock worth $1,297,000 after acquiring an additional 9,600 shares in the last quarter. Institutional investors own 68.77% of the company’s stock.
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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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