Fortinet, Inc. (FTNT) Rating Increased to Buy at Zacks Investment Research
Fortinet, Inc. (NASDAQ:FTNT) was upgraded by Zacks Investment Research from a “hold” rating to a “buy” rating in a report released on Tuesday. The firm currently has a $42.00 target price on the software maker’s stock. Zacks Investment Research‘s target price would suggest a potential upside of 10.79% from the company’s previous close.
According to Zacks, “Estimates for the network security solution provider, Fortinet have remained stable of late. A look at Fortinet’s YTD price performance shows that the company has outperformed the industry to which it belongs to. 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 four quarters, the company’s revenue growth rates have been around 20%, which are significantly lower than its previous rates of over 30%.”
Several other analysts also recently issued reports on FTNT. ValuEngine upgraded Fortinet from a “sell” rating to a “hold” rating in a research note on Friday, June 2nd. Susquehanna Bancshares Inc started coverage on Fortinet in a research note on Wednesday, June 7th. They issued a “neutral” rating and a $45.00 price target for the company. Monness Crespi & Hardt started coverage on Fortinet in a research note on Wednesday, June 14th. They issued a “buy” rating and a $45.00 price target for the company. Oppenheimer Holdings, Inc. restated an “outperform” rating and issued a $45.00 price target on shares of Fortinet in a research note on Thursday, June 22nd. Finally, Northland Securities started coverage on Fortinet in a research note on Thursday, June 29th. They issued an “outperform” rating and a $45.00 price target for the company. Two equities research analysts have rated the stock with a sell rating, nine have assigned a hold rating, twenty have given a buy rating and one has issued a strong buy rating to the company’s stock. The stock currently has an average rating of “Buy” and a consensus price target of $41.26.
Shares of Fortinet (FTNT) traded down 1.56% on Tuesday, hitting $37.11. The company had a trading volume of 112,159 shares. The company has a market capitalization of $6.53 billion, a P/E ratio of 101.67 and a beta of 0.99. Fortinet has a 12-month low of $28.50 and a 12-month high of $41.56. The firm has a 50-day moving average price of $37.31 and a 200 day moving average price of $38.20.
Fortinet (NASDAQ:FTNT) last released its quarterly earnings results on Wednesday, July 26th. The software maker reported $0.27 earnings per share (EPS) for the quarter, beating the Thomson Reuters’ consensus estimate of $0.20 by $0.07. The business had revenue of $363.50 million during the quarter, compared to the consensus estimate of $361.05 million. Fortinet had a return on equity of 9.36% and a net margin of 4.71%. The firm’s quarterly revenue was up 16.7% on a year-over-year basis. During the same period in the previous year, the company posted $0.14 EPS. Equities analysts expect that Fortinet will post $0.95 EPS for the current year.
Fortinet announced that its Board of Directors has authorized a share repurchase program on Wednesday, July 26th that permits the company to buyback $300.00 million in outstanding shares. This buyback authorization permits the software maker to reacquire up to 4.2% of its stock through open market purchases. Stock buyback programs are often a sign that the company’s leadership believes its stock is undervalued.
In related news, VP John Whittle sold 2,091 shares of the business’s stock in a transaction on Wednesday, August 2nd. The stock was sold at an average price of $36.27, for a total transaction of $75,840.57. Following the sale, the vice president now owns 7,181 shares in the company, valued at approximately $260,454.87. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, CAO Keith Jensen sold 950 shares of the business’s stock in a transaction on Tuesday, August 8th. The stock was sold at an average price of $36.67, for a total value of $34,836.50. Following the sale, the chief accounting officer now owns 1,315 shares in the company, valued at approximately $48,221.05. The disclosure for this sale can be found here. Insiders have sold a total of 9,558 shares of company stock worth $348,406 in the last 90 days. 16.40% of the stock is currently owned by corporate insiders.
Hedge funds and other institutional investors have recently added to or reduced their stakes in the business. First Mercantile Trust Co. bought a new stake in shares of Fortinet in the 2nd quarter valued at about $136,000. GLG Partners LP bought a new stake in shares of Fortinet in the 2nd quarter valued at about $145,000. NEXT Financial Group Inc grew its position in shares of Fortinet by 17,296.0% in the 2nd quarter. NEXT Financial Group Inc now owns 4,349 shares of the software maker’s stock valued at $163,000 after buying an additional 4,324 shares during the last quarter. Ropes Wealth Advisors LLC grew its position in shares of Fortinet by 67.3% in the 2nd quarter. Ropes Wealth Advisors LLC now owns 4,610 shares of the software maker’s stock valued at $173,000 after buying an additional 1,855 shares during the last quarter. Finally, Greenwood Capital Associates LLC bought a new stake in shares of Fortinet in the 2nd quarter valued at about $209,000. Hedge funds and other institutional investors own 68.99% of the company’s stock.
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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