Fortinet, Inc. (FTNT) Stock Rating Lowered by Zacks Investment Research

Fortinet, Inc. (NASDAQ:FTNT) was downgraded by Zacks Investment Research from a “strong-buy” rating to a “hold” rating in a report issued on Tuesday.

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%.”

FTNT has been the subject of several other research reports. Cowen and Company reissued a “buy” rating and set a $43.00 price objective on shares of Fortinet in a report on Friday, July 28th. Piper Jaffray Companies reaffirmed a “buy” rating and issued a $50.00 price target on shares of Fortinet in a report on Thursday, October 12th. Robert W. Baird set a $50.00 price target on shares of Fortinet and gave the company a “buy” rating in a report on Thursday, July 27th. Evercore ISI set a $38.00 price target on shares of Fortinet and gave the company a “hold” rating in a report on Thursday, July 27th. Finally, ValuEngine raised shares of Fortinet from a “sell” rating to a “hold” rating in a report on Thursday, August 10th. Two equities research analysts have rated the stock with a sell rating, seven have issued a hold rating, fifteen have issued a buy rating and one has assigned a strong buy rating to the company. Fortinet presently has a consensus rating of “Buy” and a consensus target price of $43.00.

Fortinet (NASDAQ:FTNT) opened at 40.29 on Tuesday. Fortinet has a 12-month low of $28.50 and a 12-month high of $41.56. The stock has a market cap of $7.08 billion, a P/E ratio of 110.38 and a beta of 1.01. The stock has a 50 day moving average price of $38.01 and a 200 day moving average price of $38.36.

Fortinet (NASDAQ:FTNT) last released its quarterly earnings data on Wednesday, July 26th. The software maker reported $0.27 EPS for the quarter, beating the consensus estimate of $0.20 by $0.07. Fortinet had a net margin of 4.71% and a return on equity of 9.36%. The business had revenue of $363.50 million during the quarter, compared to the consensus estimate of $361.05 million. During the same quarter in the prior year, the firm earned $0.14 EPS. The business’s revenue was up 16.7% on a year-over-year basis. On average, analysts forecast that Fortinet will post $0.95 earnings per share for the current fiscal year.

Fortinet declared that its Board of Directors has approved a share buyback program on Wednesday, July 26th that authorizes the company to buyback $300.00 million in outstanding shares. This buyback authorization authorizes the software maker to repurchase up to 4.2% of its shares through open market purchases. Shares buyback programs are usually an indication that the company’s board believes its stock is undervalued.

COPYRIGHT VIOLATION NOTICE: “Fortinet, Inc. (FTNT) Stock Rating Lowered by Zacks Investment Research” was first reported by The Ledger Gazette and is the sole property of of The Ledger Gazette. If you are viewing this article on another publication, it was illegally stolen and reposted in violation of United States and international trademark & copyright laws. The legal version of this article can be read at https://ledgergazette.com/2017/10/19/fortinet-inc-ftnt-stock-rating-lowered-by-zacks-investment-research.html.

In other news, CAO Keith Jensen sold 950 shares of the firm’s stock in a transaction that occurred on Tuesday, August 8th. The shares were sold at an average price of $36.67, for a total transaction of $34,836.50. Following the transaction, the chief accounting officer now directly owns 1,315 shares of the company’s stock, valued at $48,221.05. The sale was disclosed in a filing with the SEC, which is accessible through this hyperlink. Also, VP John Whittle sold 2,091 shares of the firm’s stock in a transaction that occurred 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 transaction, the vice president now directly owns 7,181 shares in the company, valued at $260,454.87. The disclosure for this sale can be found here. Over the last ninety days, insiders have sold 9,558 shares of company stock worth $348,406. Corporate insiders own 16.40% of the company’s stock.

Several large investors have recently modified their holdings of FTNT. UBS Asset Management Americas Inc. increased its position in shares of Fortinet by 9.3% during the first quarter. UBS Asset Management Americas Inc. now owns 372,420 shares of the software maker’s stock worth $14,282,000 after acquiring an additional 31,790 shares during the period. Parametric Portfolio Associates LLC increased its holdings in Fortinet by 16.5% during the first quarter. Parametric Portfolio Associates LLC now owns 121,551 shares of the software maker’s stock valued at $4,661,000 after buying an additional 17,202 shares during the period. Wellington Management Group LLP increased its holdings in Fortinet by 90.4% during the first quarter. Wellington Management Group LLP now owns 14,333 shares of the software maker’s stock valued at $550,000 after buying an additional 6,805 shares during the period. Legal & General Group Plc increased its holdings in Fortinet by 59.6% during the first quarter. Legal & General Group Plc now owns 174,775 shares of the software maker’s stock valued at $6,703,000 after buying an additional 65,290 shares during the period. Finally, Menta Capital LLC increased its holdings in Fortinet by 122.1% during the first quarter. Menta Capital LLC now owns 29,100 shares of the software maker’s stock valued at $1,116,000 after buying an additional 16,000 shares during the period. 69.01% of the stock is currently owned by institutional investors and hedge funds.

Fortinet Company Profile

Fortinet, Inc is a network security company. The Company provides cy

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%.”

FTNT has been the subject of several other research reports. Cowen and Company reissued a “buy” rating and set a $43.00 price objective on shares of Fortinet in a report on Friday, July 28th. Piper Jaffray Companies reaffirmed a “buy” rating and issued a $50.00 price target on shares of Fortinet in a report on Thursday, October 12th. Robert W. Baird set a $50.00 price target on shares of Fortinet and gave the company a “buy” rating in a report on Thursday, July 27th. Evercore ISI set a $38.00 price target on shares of Fortinet and gave the company a “hold” rating in a report on Thursday, July 27th. Finally, ValuEngine raised shares of Fortinet from a “sell” rating to a “hold” rating in a report on Thursday, August 10th. Two equities research analysts have rated the stock with a sell rating, seven have issued a hold rating, fifteen have issued a buy rating and one has assigned a strong buy rating to the company. Fortinet presently has a consensus rating of “Buy” and a consensus target price of $43.00.

Fortinet (NASDAQ:FTNT) opened at 40.29 on Tuesday. Fortinet has a 12-month low of $28.50 and a 12-month high of $41.56. The stock has a market cap of $7.08 billion, a P/E ratio of 110.38 and a beta of 1.01. The stock has a 50 day moving average price of $38.01 and a 200 day moving average price of $38.36.

Fortinet (NASDAQ:FTNT) last released its quarterly earnings data on Wednesday, July 26th. The software maker reported $0.27 EPS for the quarter, beating the consensus estimate of $0.20 by $0.07. Fortinet had a net margin of 4.71% and a return on equity of 9.36%. The business had revenue of $363.50 million during the quarter, compared to the consensus estimate of $361.05 million. During the same quarter in the prior year, the firm earned $0.14 EPS. The business’s revenue was up 16.7% on a year-over-year basis. On average, analysts forecast that Fortinet will post $0.95 earnings per share for the current fiscal year.

Fortinet declared that its Board of Directors has approved a share buyback program on Wednesday, July 26th that authorizes the company to buyback $300.00 million in outstanding shares. This buyback authorization authorizes the software maker to repurchase up to 4.2% of its shares through open market purchases. Shares buyback programs are usually an indication that the company’s board believes its stock is undervalued.

COPYRIGHT VIOLATION NOTICE: “Fortinet, Inc. (FTNT) Stock Rating Lowered by Zacks Investment Research” was first reported by The Ledger Gazette and is the sole property of of The Ledger Gazette. If you are viewing this article on another publication, it was illegally stolen and reposted in violation of United States and international trademark & copyright laws. The legal version of this article can be read at https://ledgergazette.com/2017/10/19/fortinet-inc-ftnt-stock-rating-lowered-by-zacks-investment-research.html.

In other news, CAO Keith Jensen sold 950 shares of the firm’s stock in a transaction that occurred on Tuesday, August 8th. The shares were sold at an average price of $36.67, for a total transaction of $34,836.50. Following the transaction, the chief accounting officer now directly owns 1,315 shares of the company’s stock, valued at $48,221.05. The sale was disclosed in a filing with the SEC, which is accessible through this hyperlink. Also, VP John Whittle sold 2,091 shares of the firm’s stock in a transaction that occurred 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 transaction, the vice president now directly owns 7,181 shares in the company, valued at $260,454.87. The disclosure for this sale can be found here. Over the last ninety days, insiders have sold 9,558 shares of company stock worth $348,406. Corporate insiders own 16.40% of the company’s stock.

Several large investors have recently modified their holdings of FTNT. UBS Asset Management Americas Inc. increased its position in shares of Fortinet by 9.3% during the first quarter. UBS Asset Management Americas Inc. now owns 372,420 shares of the software maker’s stock worth $14,282,000 after acquiring an additional 31,790 shares during the period. Parametric Portfolio Associates LLC increased its holdings in Fortinet by 16.5% during the first quarter. Parametric Portfolio Associates LLC now owns 121,551 shares of the software maker’s stock valued at $4,661,000 after buying an additional 17,202 shares during the period. Wellington Management Group LLP increased its holdings in Fortinet by 90.4% during the first quarter. Wellington Management Group LLP now owns 14,333 shares of the software maker’s stock valued at $550,000 after buying an additional 6,805 shares during the period. Legal & General Group Plc increased its holdings in Fortinet by 59.6% during the first quarter. Legal & General Group Plc now owns 174,775 shares of the software maker’s stock valued at $6,703,000 after buying an additional 65,290 shares during the period. Finally, Menta Capital LLC increased its holdings in Fortinet by 122.1% during the first quarter. Menta Capital LLC now owns 29,100 shares of the software maker’s stock valued at $1,116,000 after buying an additional 16,000 shares during the period. 69.01% of the stock is currently owned by institutional investors and hedge funds.

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.

Analyst Recommendations for Fortinet (NASDAQ:FTNT)

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