Fortinet Inc. (NASDAQ:FTNT) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a research note issued to investors on Friday.
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 topic of a number of other research reports. Dougherty & Co lowered their target price on Fortinet from $40.00 to $35.00 and set a “buy” rating on the stock in a research note on Wednesday. Wells Fargo & Co. restated an “outperform” rating and issued a $37.00 target price (down previously from $43.50) on shares of Fortinet in a research note on Thursday. Pacific Crest upgraded Fortinet from a “sector weight” rating to an “overweight” rating and set a $47.00 target price on the stock in a research note on Tuesday, August 30th. Citigroup Inc. lowered their target price on Fortinet from $35.00 to $31.00 and set a “neutral” rating on the stock in a research note on Wednesday. Finally, Piper Jaffray Cos. set a $30.00 target price on Fortinet and gave the company a “hold” rating in a research note on Wednesday. One analyst has rated the stock with a sell rating, eleven have issued a hold rating and seventeen have assigned a buy rating to the company’s stock. Fortinet has a consensus rating of “Buy” and a consensus price target of $36.16.
Shares of Fortinet (NASDAQ:FTNT) opened at 31.19 on Friday. The company’s 50 day moving average price is $35.71 and its 200 day moving average price is $33.60. Fortinet has a one year low of $23.16 and a one year high of $44.63. The stock has a market capitalization of $5.39 billion, a P/E ratio of 842.97 and a beta of 1.62.
Fortinet (NASDAQ:FTNT) last issued its earnings results on Thursday, July 28th. The company reported $0.14 EPS for the quarter, meeting analysts’ consensus estimates of $0.14. Fortinet had a return on equity of 0.68% and a net margin of 0.07%. The firm had revenue of $311.40 million for the quarter, compared to the consensus estimate of $304.71 million. During the same quarter in the previous year, the company posted $0.11 earnings per share. The business’s quarterly revenue was up 29.9% compared to the same quarter last year. On average, equities analysts expect that Fortinet will post $0.70 earnings per share for the current year.
In other Fortinet news, Director Ming Hsieh sold 23,900 shares of the stock in a transaction on Monday, August 22nd. The stock was sold at an average price of $34.84, for a total value of $832,676.00. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, VP John Whittle sold 834 shares of the stock in a transaction on Thursday, September 1st. The shares were sold at an average price of $36.70, for a total value of $30,607.80. Following the completion of the transaction, the vice president now owns 5,515 shares in the company, valued at $202,400.50. The disclosure for this sale can be found here. Corporate insiders own 16.40% of the company’s stock.
A number of hedge funds and other institutional investors have recently made changes to their positions in FTNT. Aperio Group LLC raised its position in shares of Fortinet by 47.0% in the first quarter. Aperio Group LLC now owns 24,764 shares of the company’s stock worth $759,000 after buying an additional 7,920 shares during the last quarter. Ngam Advisors L.P. raised its position in shares of Fortinet by 54.5% in the first quarter. Ngam Advisors L.P. now owns 15,764 shares of the company’s stock worth $483,000 after buying an additional 5,559 shares during the last quarter. BlackRock Inc. raised its position in shares of Fortinet by 8.3% in the first quarter. BlackRock Inc. now owns 151,235 shares of the company’s stock worth $4,633,000 after buying an additional 11,611 shares during the last quarter. BlackRock Group LTD raised its position in shares of Fortinet by 6.8% in the first quarter. BlackRock Group LTD now owns 549,239 shares of the company’s stock worth $16,824,000 after buying an additional 35,056 shares during the last quarter. Finally, BlackRock Institutional Trust Company N.A. raised its position in shares of Fortinet by 1.8% in the first quarter. BlackRock Institutional Trust Company N.A. now owns 4,305,181 shares of the company’s stock worth $131,868,000 after buying an additional 76,896 shares during the last quarter. Hedge funds and other institutional investors own 70.65% of the company’s stock.
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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