Zacks Investment Research Downgrades Fortinet Inc. (FTNT) to Sell
Fortinet Inc. (NASDAQ:FTNT) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a research note issued to 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 research analysts have also issued reports about the company. Wells Fargo & Co. reaffirmed a “buy” rating on shares of Fortinet in a research report on Sunday, September 25th. Wunderlich assumed coverage on Fortinet in a report on Tuesday, September 13th. They issued a “buy” rating and a $45.00 price objective on the stock. Goldman Sachs Group Inc. cut their price objective on Fortinet from $43.00 to $36.00 and set a “buy” rating on the stock in a report on Wednesday, October 12th. Dougherty & Co cut their price objective on Fortinet from $40.00 to $35.00 and set a “buy” rating on the stock in a report on Wednesday, October 12th. Finally, Needham & Company LLC reissued a “buy” rating and issued a $41.00 price objective (down from $42.00) on shares of Fortinet in a report on Wednesday, October 12th. One investment analyst has rated the stock with a sell rating, eleven have given a hold rating and seventeen have issued a buy rating to the company. The stock has an average rating of “Buy” and an average price target of $36.16.
Shares of Fortinet (NASDAQ:FTNT) opened at 30.96 on Friday. Fortinet has a 52 week low of $23.16 and a 52 week high of $44.63. The company’s 50-day moving average price is $35.45 and its 200 day moving average price is $33.69. The company has a market cap of $5.35 billion, a P/E ratio of 836.76 and a beta of 1.62.
Fortinet (NASDAQ:FTNT) last announced its earnings results on Thursday, July 28th. The company reported $0.14 earnings per share (EPS) for the quarter, meeting the Thomson Reuters’ consensus estimate of $0.14. Fortinet had a return on equity of 0.68% and a net margin of 0.07%. The company had revenue of $311.40 million for the quarter, compared to analyst estimates of $304.71 million. During the same period in the prior year, the company posted $0.11 EPS. The firm’s quarterly revenue was up 29.9% compared to the same quarter last year. Equities research analysts anticipate that Fortinet will post $0.70 earnings per share for the current fiscal year.
In other news, Director Ming Hsieh sold 23,900 shares of Fortinet stock in a transaction on Monday, August 22nd. The stock was sold at an average price of $34.84, for a total value of $832,676.00. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, VP John Whittle sold 834 shares of Fortinet stock in a transaction on Thursday, September 1st. The shares were sold at an average price of $36.70, for a total value of $30,607.80. Following the completion of the sale, the vice president now directly owns 5,515 shares of the company’s stock, valued at $202,400.50. The disclosure for this sale can be found here. 16.40% of the stock is owned by insiders.
Large investors have recently modified their holdings of the stock. PNC Financial Services Group Inc. boosted its stake in shares of Fortinet by 0.4% in the second quarter. PNC Financial Services Group Inc. now owns 14,891 shares of the company’s stock worth $471,000 after buying an additional 59 shares during the last quarter. Shelton Capital Management boosted its stake in shares of Fortinet by 0.8% in the second quarter. Shelton Capital Management now owns 13,366 shares of the company’s stock worth $422,000 after buying an additional 100 shares during the last quarter. Brown Advisory Inc. boosted its stake in shares of Fortinet by 0.5% in the second quarter. Brown Advisory Inc. now owns 20,209 shares of the company’s stock worth $638,000 after buying an additional 106 shares during the last quarter. Ranger Investment Management L.P. boosted its stake in shares of Fortinet by 1.3% in the second quarter. Ranger Investment Management L.P. now owns 8,350 shares of the company’s stock worth $264,000 after buying an additional 110 shares during the last quarter. Finally, US Bancorp DE boosted its stake in shares of Fortinet by 3.8% in the second quarter. US Bancorp DE now owns 3,342 shares of the company’s stock worth $106,000 after buying an additional 123 shares during the last quarter. 70.63% of the stock is owned by institutional investors and hedge funds.
Fortinet Company Profile
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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