Fortinet, Inc. $FTNT Holdings Cut by Profund Advisors LLC

Profund Advisors LLC lessened its holdings in Fortinet, Inc. (NASDAQ:FTNT) by 7.9% during the 3rd quarter, Holdings Channel.com reports. The firm owned 54,768 shares of the software maker’s stock after selling 4,706 shares during the period. Profund Advisors LLC’s holdings in Fortinet were worth $9,790,000 as of its most recent filing with the Securities & Exchange Commission.

Other institutional investors have also added to or reduced their stakes in the company. BlackRock Inc. purchased a new stake in Fortinet in the second quarter worth $9,561,650,000. First Trust Advisors LP raised its holdings in shares of Fortinet by 45.5% during the first quarter. First Trust Advisors LP now owns 11,506,173 shares of the software maker’s stock worth $940,284,000 after purchasing an additional 3,598,487 shares during the last quarter. Arrowstreet Capital Limited Partnership increased its stake in shares of Fortinet by 87.4% in the 1st quarter. Arrowstreet Capital Limited Partnership now owns 9,651,024 shares of the software maker’s stock valued at $788,682,000 after purchasing an additional 4,500,194 shares in the last quarter. Bank of New York Mellon Corp purchased a new stake in Fortinet during the 2nd quarter worth approximately $1,432,842,000. Finally, Legal & General Group Plc acquired a new position in shares of Fortinet during the 2nd quarter valued at about $979,062,000. Hedge funds and other institutional investors own 83.71% of the company’s stock.

Insider Activity at Fortinet

In other news, VP Michael Xie sold 3,121 shares of Fortinet stock in a transaction on Monday, August 3rd. The stock was sold at an average price of $162.63, for a total transaction of $507,568.23. Following the sale, the vice president directly owned 9,918,360 shares in the company, valued at $1,613,022,886.80. The trade was a 0.03% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, COO John Whittle sold 2,835 shares of the firm’s stock in a transaction dated Tuesday, September 15th. The shares were sold at an average price of $168.74, for a total value of $478,377.90. Following the transaction, the chief operating officer directly owned 96,987 shares in the company, valued at approximately $16,365,586.38. This represents a 2.84% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last 90 days, insiders sold 221,303 shares of company stock valued at $36,164,034. 17.60% of the stock is owned by company insiders.

Key Fortinet News

Here are the key news stories impacting Fortinet this week:

• Positive Sentiment: Fortinet reported third-quarter revenue of approximately $2.08 billion, up 20.5% year over year, and adjusted EPS of $0.91, exceeding consensus estimates. Billings increased 29%, while operating margins reached a record. Fortinet Q3 Earnings and Revenues Beat Estimates
• Positive Sentiment: Management raised full-year 2026 guidance to $8.1 billion-$8.2 billion in revenue and $3.54-$3.58 in EPS. Fourth-quarter EPS guidance of $0.93-$0.95 also exceeds the consensus estimate of $0.86. Fortinet Raises Guidance
• Positive Sentiment: The board authorized an additional $1.2 billion in share repurchases, and quarterly free cash flow was approximately $865 million. Analysts at TD Cowen, Rosenblatt and Truist retained bullish ratings despite lowering their price targets. Fortinet Adds to Buyback Program
• Neutral Sentiment: Fortinet is technically oversold after a sharp multi-week decline, while rising earnings estimates could support a rebound. However, the technical signal does not resolve concerns about the company’s growth mix. Fortinet May See a Trend Reversal
• Negative Sentiment: Service revenue grew only 13%, versus 37% growth in product revenue. Investors are concerned that hardware sales tied to AI infrastructure are not converting into recurring services quickly enough, reducing near-term revenue visibility. The Real Reason Fortinet Dropped
• Negative Sentiment: Management lowered its services outlook, while fourth-quarter revenue guidance implies growth deceleration from the third quarter. Normalizing pricing benefits, higher inventory costs and longer component lead times added to investor concerns.
• Negative Sentiment: Wells Fargo cut its price target to $115 and assigned an underweight rating; Susquehanna lowered its target to $145 and rated the shares neutral. Other firms, including Bank of America, Citi, Barclays and Scotiabank, also reduced targets or ratings. Analysts Cut Fortinet Forecasts
• Negative Sentiment: The broader technology and cybersecurity sell-off is amplifying the reaction, despite a major cryptocurrency hack highlighting demand for digital security. Investors are also questioning whether Fortinet’s premium valuation remains justified as growth slows.

Fortinet Stock Performance

FTNT opened at $136.08 on Friday. The stock has a 50-day moving average of $171.34 and a 200-day moving average of $128.28. The company has a debt-to-equity ratio of 0.22, a quick ratio of 1.19 and a current ratio of 1.40. Fortinet, Inc. has a 52-week low of $73.55 and a 52-week high of $197.13. The company has a market cap of $99.84 billion, a PE ratio of 44.18, a price-to-earnings-growth ratio of 2.53 and a beta of 1.03.

Fortinet (NASDAQ:FTNT) last released its earnings results on Wednesday, October 28th. The software maker reported $0.91 earnings per share for the quarter, topping analysts’ consensus estimates of $0.86 by $0.05. The company had revenue of $2.08 billion during the quarter, compared to the consensus estimate of $2.06 billion. Fortinet had a return on equity of 152.72% and a net margin of 28.96%. The firm’s quarterly revenue was up 20.5% on a year-over-year basis. During the same quarter in the previous year, the company posted $0.74 earnings per share. As a group, equities research analysts forecast that Fortinet, Inc. will post 3.19 earnings per share for the current fiscal year.

Analysts Set New Price Targets

A number of equities research analysts have recently weighed in on FTNT shares. Citigroup dropped their price objective on Fortinet from $185.00 to $140.00 and set a “neutral” rating for the company in a research note on Thursday. Scotiabank reduced their price target on shares of Fortinet from $163.00 to $140.00 and set a “sector perform” rating for the company in a research report on Thursday. UBS Group reaffirmed a “neutral” rating and set a $200.00 price objective on shares of Fortinet in a research note on Thursday, October 15th. Evercore set a $165.00 target price on shares of Fortinet in a research report on Thursday, July 30th. Finally, Wolfe Research set a $175.00 price objective on Fortinet in a report on Thursday, July 30th. One investment analyst has rated the stock with a Strong Buy rating, ten have issued a Buy rating, twenty-four have issued a Hold rating and six have issued a Sell rating to the company’s stock. According to data from MarketBeat.com, Fortinet currently has a consensus rating of “Hold” and an average price target of $147.94.

Fortinet Company Profile

Fortinet, Inc develops cybersecurity products and services designed to protect networks, endpoints, applications, cloud environments and operational technology systems. The company’s portfolio includes next-generation firewalls, secure networking products, endpoint security, web application security, email security, identity and access solutions, and security information and event management tools.

Its product offerings include FortiGate network security appliances and cloud-based firewalls, along with FortiSwitch, FortiAP and FortiExtender solutions for secure connectivity.