Royal Bank of Canada Sells 569,216 Shares of Fortinet, Inc. $FTNT

Royal Bank of Canada trimmed its stake in shares of Fortinet, Inc. (NASDAQ:FTNT) by 22.4% in the first quarter, Holdings Channel.com reports. The firm owned 1,974,224 shares of the software maker’s stock after selling 569,216 shares during the quarter. Royal Bank of Canada’s holdings in Fortinet were worth $161,334,000 at the end of the most recent reporting period.

A number of other hedge funds and other institutional investors have also recently modified their holdings of the stock. Physician Wealth Advisors Inc. lifted its stake in shares of Fortinet by 408.3% in the 1st quarter. Physician Wealth Advisors Inc. now owns 305 shares of the software maker’s stock valued at $25,000 after acquiring an additional 245 shares during the last quarter. Wexford Capital LP acquired a new position in Fortinet in the 3rd quarter worth about $25,000. Elyxium Wealth LLC acquired a new position in Fortinet in the 4th quarter worth about $27,000. Palisade Asset Management LLC bought a new position in Fortinet in the third quarter valued at about $28,000. Finally, Ares Financial Consulting LLC acquired a new stake in shares of Fortinet during the fourth quarter valued at about $29,000. Institutional investors own 83.71% of the company’s stock.

Key Fortinet News

Here are the key news stories impacting Fortinet this week:

• Positive Sentiment: Fortinet reported adjusted earnings of $0.90 per share, exceeding the $0.75 consensus estimate, while revenue rose 26% year over year to $2.05 billion, above expectations of $1.89 billion. Fortinet Q2 Earnings Snapshot
• Positive Sentiment: Product revenue surged 52% to $773 million, billings increased 33% to $2.37 billion, and management cited strong demand for AI infrastructure, SASE, firewall and operational-technology security products. FTNT Q2 Earnings Call Highlights
• Positive Sentiment: Fortinet raised fiscal-year 2026 revenue guidance to approximately $8.0 billion-$8.2 billion and EPS guidance to $3.41-$3.47. Third-quarter revenue guidance of $2.01 billion-$2.10 billion and EPS guidance of $0.83-$0.87 also exceed Wall Street estimates. Fortinet Raises Revenue Outlook
• Positive Sentiment: Wall Street became more constructive after the results: BTIG raised its target to $203 with a Buy rating, Rosenblatt lifted its target to $195 with a Buy rating, and Citigroup increased its target to $185 while maintaining Neutral. Analysts Boost Forecasts
• Neutral Sentiment: William Blair maintained a Hold rating, acknowledging strong execution and pricing tailwinds but questioning how durable the acceleration will be. William Blair Maintains Hold
• Negative Sentiment: Some valuation analysis suggests FTNT shares look expensive after a roughly 152% five-year advance, leaving the stock vulnerable if growth or product momentum slows. Fortinet Valuation Analysis

Insider Activity at Fortinet

In other Fortinet news, CEO Ken Xie sold 160,632 shares of the stock in a transaction dated Tuesday, June 2nd. The stock was sold at an average price of $145.58, for a total transaction of $23,384,806.56. Following the completion of the sale, the chief executive officer directly owned 52,972,372 shares in the company, valued at approximately $7,711,717,915.76. This trade represents a 0.30% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, COO John Whittle sold 146,015 shares of Fortinet stock in a transaction dated Thursday, May 21st. The stock was sold at an average price of $128.41, for a total value of $18,749,786.15. Following the completion of the transaction, the chief operating officer directly owned 94,724 shares of the company’s stock, valued at approximately $12,163,508.84. This trade represents a 60.65% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 318,387 shares of company stock worth $43,403,063 over the last quarter. Company insiders own 17.60% of the company’s stock.

Analyst Ratings Changes

Several research analysts have recently issued reports on FTNT shares. Truist Financial set a $183.00 price objective on Fortinet and gave the company a “buy” rating in a research note on Tuesday, July 21st. Weiss Ratings raised shares of Fortinet from a “hold (c)” rating to a “hold (c+)” rating in a report on Thursday, June 11th. Citigroup upped their price target on shares of Fortinet from $165.00 to $185.00 and gave the company a “neutral” rating in a research report on Thursday. Morgan Stanley reissued a “positive” rating and issued a $136.00 price objective (up from $133.00) on shares of Fortinet in a research note on Thursday. Finally, Evercore set a $165.00 price objective on Fortinet in a report on Thursday. Two research analysts have rated the stock with a Strong Buy rating, ten have issued a Buy rating, twenty-three have assigned a Hold rating and four have assigned a Sell rating to the company’s stock. According to MarketBeat, the stock currently has a consensus rating of “Hold” and an average target price of $149.55.

Fortinet Stock Up 0.7%

Fortinet stock opened at $154.25 on Friday. The company has a debt-to-equity ratio of 0.50, a quick ratio of 1.07 and a current ratio of 1.15. Fortinet, Inc. has a 52-week low of $70.12 and a 52-week high of $170.35. The firm has a 50 day moving average price of $149.94 and a two-hundred day moving average price of $108.72. The firm has a market cap of $113.01 billion, a price-to-earnings ratio of 54.31, a PEG ratio of 4.17 and a beta of 1.09.

Fortinet (NASDAQ:FTNT) last issued its quarterly earnings results on Wednesday, July 29th. The software maker reported $0.90 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.75 by $0.15. Fortinet had a net margin of 28.17% and a return on equity of 218.88%. The firm had revenue of $2.05 billion for the quarter, compared to the consensus estimate of $1.89 billion. During the same quarter in the previous year, the company earned $0.64 EPS. The company’s revenue for the quarter was up 25.6% on a year-over-year basis. Fortinet has set its FY 2026 guidance at 3.410-3.470 EPS and its Q3 2026 guidance at 0.830-0.870 EPS. Equities analysts predict that Fortinet, Inc. will post 2.8 EPS for the current year.

Fortinet Profile

Fortinet, Inc (NASDAQ: FTNT) is a multinational cybersecurity company that develops and delivers integrated security solutions for enterprise, service provider and government customers worldwide. Founded in 2000 and headquartered in Sunnyvale, California, the company was co?founded by Ken Xie and Michael Xie. Ken Xie serves as chairman and chief executive officer, and the company operates through a global sales, channel and services organization to support customers across the Americas, EMEA and Asia?Pacific.

Fortinet’s product portfolio centers on network security appliances and software, with its FortiGate next?generation firewalls and the FortiOS operating system forming a core platform.