Fortinet (NASDAQ:FTNT) was upgraded by Zacks Investment Research from a “hold” rating to a “buy” rating in a report issued on Monday. The firm presently has a $61.00 target price on the software maker’s stock. Zacks Investment Research‘s price target would suggest a potential upside of 12.44% from the company’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.”
Several other equities research analysts also recently weighed in on FTNT. Credit Suisse Group raised their price target on Fortinet from $33.00 to $37.00 and gave the stock an “underperform” rating in a report on Tuesday, February 6th. Oppenheimer raised their price target on Fortinet from $50.00 to $55.00 and gave the stock an “outperform” rating in a report on Wednesday, February 28th. BMO Capital Markets raised their price target on Fortinet from $45.00 to $50.00 and gave the stock an “outperform” rating in a report on Tuesday, February 6th. Piper Jaffray Companies reissued an “overweight” rating and issued a $57.00 price target on shares of Fortinet in a report on Wednesday, February 28th. Finally, Stifel Nicolaus raised their price target on Fortinet from $42.00 to $46.00 and gave the stock a “hold” rating in a report on Tuesday, February 6th. One research analyst has rated the stock with a sell rating, eleven have given a hold rating, fourteen have assigned a buy rating and two have given a strong buy rating to the company’s stock. The stock currently has a consensus rating of “Buy” and a consensus price target of $48.96.
Fortinet (NASDAQ:FTNT) last issued its quarterly earnings results on Monday, February 5th. The software maker reported $0.32 earnings per share for the quarter, topping the consensus estimate of $0.29 by $0.03. The business had revenue of $416.70 million during the quarter, compared to the consensus estimate of $409.04 million. Fortinet had a return on equity of 11.77% and a net margin of 2.10%. The company’s quarterly revenue was up 14.9% on a year-over-year basis. During the same quarter last year, the company earned $0.30 earnings per share. research analysts anticipate that Fortinet will post 0.74 earnings per share for the current fiscal year.
In other Fortinet news, VP John Whittle sold 13,749 shares of the business’s stock in a transaction that occurred on Tuesday, December 19th. The stock was sold at an average price of $45.00, for a total value of $618,705.00. Following the completion of the transaction, the vice president now directly owns 18,430 shares of the company’s stock, valued at $829,350. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, Director Christopher B. Paisley sold 4,000 shares of the business’s stock in a transaction that occurred on 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 transaction, the director now directly owns 72,937 shares of the company’s stock, valued at $3,406,887.27. The disclosure for this sale can be found here. Insiders sold 169,939 shares of company stock valued at $7,733,246 over the last three months. 17.00% of the stock is currently owned by corporate insiders.
Large investors have recently made changes to their positions in the business. SeaCrest Wealth Management LLC acquired a new position in Fortinet in the fourth quarter valued at approximately $109,000. Cerebellum GP LLC acquired a new position in Fortinet in the fourth quarter valued at approximately $125,000. First Mercantile Trust Co. acquired a new position in Fortinet in the fourth quarter valued at approximately $135,000. First Republic Investment Management Inc. acquired a new position in Fortinet in the fourth quarter valued at approximately $208,000. Finally, Capital One National Association acquired a new position in Fortinet in the fourth quarter valued at approximately $213,000. 68.77% of the stock is owned by institutional investors.
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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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