Fortinet Inc. (FTNT) Downgraded to “Sell” at Zacks Investment Research
Fortinet Inc. (NASDAQ:FTNT) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a research report issued to clients and 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.”
Other analysts have also issued reports about the stock. Wells Fargo & Co. restated an “outperform” rating and issued a $37.00 price objective (down from $43.50) on shares of Fortinet in a report on Thursday. Robert W. Baird set a $34.00 price objective on shares of Fortinet and gave the company a “hold” rating in a report on Wednesday. Barclays PLC reduced their price objective on shares of Fortinet from $42.00 to $34.00 and set an “overweight” rating on the stock in a report on Wednesday. Wunderlich reduced their price objective on shares of Fortinet from $45.00 to $42.00 and set a “buy” rating on the stock in a report on Wednesday. Finally, Royal Bank Of Canada reduced their price objective on shares of Fortinet from $37.00 to $30.00 and set a “sector perform” rating on the stock in a report on Wednesday. One investment analyst has rated the stock with a sell rating, eleven have issued a hold rating and seventeen have given a buy rating to the stock. The company currently has a consensus rating of “Buy” and a consensus price target of $36.16.
Fortinet (NASDAQ:FTNT) opened at 31.19 on Friday. Fortinet has a one year low of $23.16 and a one year high of $44.63. The firm has a 50-day moving average of $35.71 and a 200 day moving average of $33.60. The stock has a market capitalization of $5.39 billion, a PE ratio of 842.97 and a beta of 1.62.
Fortinet (NASDAQ:FTNT) last issued its quarterly earnings data on Thursday, July 28th. The company reported $0.14 earnings per share (EPS) for the quarter, meeting the consensus estimate of $0.14. The firm had revenue of $311.40 million for the quarter, compared to analyst estimates of $304.71 million. Fortinet had a net margin of 0.07% and a return on equity of 0.68%. Fortinet’s revenue was up 29.9% on a year-over-year basis. During the same period in the previous year, the firm earned $0.11 EPS. On average, equities research analysts anticipate that Fortinet will post $0.70 earnings per share for the current fiscal year.
In other Fortinet news, Director Christopher B. Paisley sold 6,000 shares of the stock in a transaction on Tuesday, August 2nd. The stock was sold at an average price of $34.07, for a total value of $204,420.00. Following the completion of the transaction, the director now owns 60,648 shares in the company, valued at $2,066,277.36. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this hyperlink. Also, VP John Whittle sold 834 shares of the stock in a transaction on Thursday, September 1st. The stock was 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 of the company’s stock, valued at approximately $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 added to or reduced their stakes in FTNT. Nomura Holdings Inc. boosted its position in Fortinet by 185.2% in the second quarter. Nomura Holdings Inc. now owns 5,775,000 shares of the company’s stock valued at $182,556,000 after buying an additional 3,750,000 shares during the last quarter. BlackRock Fund Advisors boosted its position in Fortinet by 5.2% in the second quarter. BlackRock Fund Advisors now owns 5,534,971 shares of the company’s stock valued at $174,850,000 after buying an additional 271,097 shares during the last quarter. BlackRock Institutional Trust Company N.A. boosted its position in Fortinet by 6.4% in the second quarter. BlackRock Institutional Trust Company N.A. now owns 4,582,486 shares of the company’s stock valued at $144,761,000 after buying an additional 277,305 shares during the last quarter. State Street Corp boosted its position in Fortinet by 2.7% in the second quarter. State Street Corp now owns 4,536,944 shares of the company’s stock valued at $143,318,000 after buying an additional 118,978 shares during the last quarter. Finally, Ameriprise Financial Inc. boosted its position in Fortinet by 43.8% in the second quarter. Ameriprise Financial Inc. now owns 3,905,990 shares of the company’s stock valued at $123,388,000 after buying an additional 1,190,096 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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