An Important Check-Up On Fortinet Inc. (NASDAQ: FTNT)


    Fidelity Management & Research Co.. has recently announced that it has increased stake in Fortinet Inc. (NASDAQ:FTNT) by 109.10%. After grabbing 3.36 million shares, the institutional investor is now in possession of 1.76 million shares of the Technology Company. The new investment brought the stake of investor firm to 2.08% having worth around $465.2 million. Moreover, Pictet Asset Management SA increased its share by 13700.0 to have a control over 1.71 million shares. And Norges Bank Investment Management raised its holdings to 0.1 million shares by acquiring 1.64 million shares or 1.02% of the stake.

    Fortinet Inc. (FTNT) concluded trading on 08/27/20 at a closing price of $132.07, with 1.65 million shares of worth about $218.13 million changed hands on the day. Weekly performance of the stock remained negative as price took a plunge of -1.14% during that period and on Thursday the price saw a loss of about -3.75%. Currently the company’s common shares owned by public are about 161.60M shares, out of which, 135.06M shares are available for trading.

    A deeper look into what the analysts at Wall Street are thinking about the price target of this stock provides us with the following: 29 analysts are covering the FTNT stock and their offered price forecasts bring an average price target of $140.58. Over the next 12 months, analysts forecasted that the stock’s price could jump as high as $206.51 and could fall to a lowest price of $102.00. Analysts also issued an outlook of 2.50 for the Fortinet Inc. stock for next 12 months. The stock’s current price level is 5.09% above of average price target set by the analysts, while a rise to estimated low would result in loss of -29.48 for the stock. However, touching the estimated high of $206.51 would mean a gain of 36.05% for the stock.

    According to filings with the U.S. Securities and Exchange Commission (SEC), insiders took part in trade of the company’s stock for 264 times over the past 12 months. They bought 210,327 shares in 119 of the transactions. In 145 selling transactions, insiders dumped 531,208 shares.

    Vanguard Total Stock Market Index, Vanguard Mid Cap Index Fund, and Vanguard 500 Index Fund are the top 3 mutual funds which are holding stakes in Fortinet Inc. Vanguard Total Stock Market Index is currently holding 3.9 million shares of worth totaling $539.16 million. The company recently came selling 14116.0 shares which brought its stake up to 2.41% of the company’s outstanding shares. Vanguard Mid Cap Index Fund sold 27573.0 shares, after which its hold over company’s outstanding shares shrunk to 2.09%, leaving 3.37 million shares with the mutual fund that have a worth of about $466.03 million. Vanguard 500 Index Fund, after selling 2.77 million shares, have now control over 1.71% of the stake in the company. It holds 16620.0 shares of worth $382.73 million.

    Fortinet Inc. (NASDAQ: FTNT) started trading at $136.71, below -$0.51 from concluding price of the previous day. However, the stock finished the trading on the day at a closing price of $132.07, or with a loss of -3.75%. Stock saw a price change of -1.14% in past 5 days and over the past one month there was a price change of -3.49%. Year-to-date (YTD), FTNT shares are showing a performance of 23.71% which increased to 69.65% when we look at its performance for past 12 months. Over the period of past 52 weeks, stock dropped to lowest price of $70.20 but also hit the highest price of $151.95 during that period. While comparing its average daily trading volume of 1.54 million shares, we see that about 1.65 million changed hands on the day. The stock is currently trading -0.53% below its 20-day simple moving average (SMA20), while that difference is down -2.10% for SMA50 and it goes to 11.96% higher than SMA200.

    Fidelity Management & Research Co.. acquired 3.36 million shares of Fortinet Inc. having value of about $465.2 million. Data submitted at the U.S SEC by Fidelity Management & Research Co.. revealed that the firm now holds 1.76 million shares in the company valued at close to $231782982.07, or have control over 109.10% stake in the company. Fortinet Inc. (NASDAQ: FTNT) currently have 161.60M outstanding shares and institutions hold larger chunk of about 72.10% of that. Holding of mutual funds in the company is about 34.71% while other institutional holders and individual stake holders have control over 36.67% and 24.98% of the stake respectively.

    The stock has a current market capitalization of $21.68B and its 3Y-monthly beta is at 0.89. PE ratio of stock for trailing 12 months is 55.51, while it has posted earnings per share of $2.38 in the same period. Its PEG reads 3.06 and has Quick Ratio of 1.30 while making debt-to-equity ratio of 0.00. Volatility of a stock is a metric used to know how much the price of that stock is under influence and for FTNT, volatility over the week remained 3.39% while standing at 3.07% over the month.

    Analysts are in expectations that Fortinet Inc. (FTNT) stock would likely to be making an EPS of $0.78 in the current quarter, while forecast for next quarter ESPS is $0.87 and it is $3.43 for next year. For the current quarter EPS, analysts have given the company a lowest target $0.77 which is $0.79 at the higher side of the target for the same. When we compare those targets with actual EPS, we find that company posted an EPS of $0.67 in the same quarter a year ago. Stock’s fiscal year EPS is expected to drop by -11.50% while it is estimated to increase by 12.59% in next year. EPS is likely to shrink at an annualized rate of 18.13% for next 5-years, compared to annual growth of 65.40% made by the stock over the past 5-years.

    Analysts at 29 brokerage firms have issued recommendations for the Fortinet Inc. (FTNT)’s stock and average of those rates the stock at a “Moderate Buy” and assign it a score of 2.50. Out of those 29 Wall Street analysts, 9 recommended a “Buy” rating, while 19 were in favor recommending the stock as a “Hold” and 1 analyst recommended the stock as “Sell”.

    Digging deeper we find that several firms have released their research notes about the support levels of the stock. Most recent of them is a note released by Deutsche Bank on August 20, 2020 offering a Hold rating for the stock and assigned a target price of $131 to it. Coverage by Goldman stated Fortinet Inc. (FTNT) stock as a Neutral in their note to investors on July 15, 2020, suggesting a price target of $140 for the stock. On July 07, 2020, JP Morgan Downgrade their recommendations, while on June 24, 2020, Monness Crespi & Hardt Reiterated their ratings for the stock with a price target of $155. Stock get a Buy rating from Monness Crespi & Hardt on May 07, 2020.


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