Evercore ISI Reiterates “$38.00” Price Target for Fortinet, Inc. (FTNT)
“We believe most segments performed well with the exception of service providers. The company maintained its long-term margin targets (25% by 2022) which remain unaccompanied by growth metrics. FTNT’s board doubled the share repurchase authorization through Jan. 2019, which we view as a positive. We believe the company continues to execute on its push to shift its business towards ratable revenue which should make the topline more predictable and serve as a tailwind to margin expansion. The lack of clarity around the long-term business model remains an overhang that in combination with potentially tough guidance for the remainder of the year should keep the stock range bound in the near-term.”,” Evercore ISI’s analyst wrote.
A number of other research firms have also recently weighed in on FTNT. BMO Capital Markets raised Fortinet from a market perform rating to an outperform rating and raised their price objective for the stock from $44.00 to $46.00 in a research report on Friday, April 21st. They noted that the move was a valuation call. Susquehanna Bancshares Inc started coverage on Fortinet in a research report on Wednesday, June 7th. They issued a neutral rating and a $45.00 price objective for the company. Dougherty & Co raised their price objective on Fortinet from $38.00 to $46.00 and gave the stock a buy rating in a research report on Friday, April 21st. Northland Securities started coverage on Fortinet in a research report on Thursday, June 29th. They issued an outperform rating and a $45.00 price objective for the company. Finally, Robert W. Baird raised Fortinet from a neutral rating to an outperform rating and raised their price objective for the stock from $38.00 to $50.00 in a research report on Wednesday, March 29th. One investment analyst has rated the stock with a sell rating, ten have given a hold rating, twenty have issued a buy rating and one has issued a strong buy rating to the company’s stock. The stock has an average rating of Buy and a consensus target price of $41.56.
Fortinet (NASDAQ FTNT) opened at 37.47 on Thursday. The stock has a market cap of $6.58 billion, a PE ratio of 102.66 and a beta of 1.03. Fortinet has a 1-year low of $28.50 and a 1-year high of $41.56. The stock has a 50 day moving average price of $38.66 and a 200 day moving average price of $37.62.
Fortinet (NASDAQ:FTNT) last posted its quarterly earnings data on Wednesday, July 26th. The software maker reported $0.27 earnings per share for the quarter, topping the Zacks’ consensus estimate of $0.20 by $0.07. The firm had revenue of $363.50 million during the quarter, compared to analysts’ expectations of $361.05 million. Fortinet had a return on equity of 9.36% and a net margin of 4.71%. The business’s quarterly revenue was up 16.7% on a year-over-year basis. During the same quarter last year, the firm earned $0.14 EPS. On average, analysts predict that Fortinet will post $0.95 EPS for the current fiscal year.
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Fortinet announced that its board has initiated a stock buyback program on Wednesday, July 26th that permits the company to repurchase $300.00 million in outstanding shares. This repurchase authorization permits the software maker to repurchase up to 4.2% of its stock through open market purchases. Stock repurchase programs are often an indication that the company’s management believes its stock is undervalued.
In related news, VP John Whittle sold 11,057 shares of Fortinet stock in a transaction dated Tuesday, May 2nd. The stock was sold at an average price of $39.45, for a total value of $436,198.65. Following the sale, the vice president now directly owns 11,868 shares in the company, valued at approximately $468,192.60. The transaction was disclosed in a legal filing with the SEC, which is available at this link. Also, insider Keith Jensen sold 1,850 shares of Fortinet stock in a transaction dated Wednesday, May 10th. The stock was sold at an average price of $39.42, for a total value of $72,927.00. Following the completion of the sale, the insider now owns 1,254 shares in the company, valued at $49,432.68. The disclosure for this sale can be found here. Over the last quarter, insiders sold 23,857 shares of company stock worth $944,214. 17.00% of the stock is currently owned by insiders.
Large investors have recently bought and sold shares of the company. BlackRock Inc. boosted its stake in Fortinet by 7,159.6% in the first quarter. BlackRock Inc. now owns 13,177,758 shares of the software maker’s stock valued at $505,365,000 after buying an additional 12,996,236 shares during the last quarter. MARSHALL WACE ASIA Ltd purchased a new stake in Fortinet during the first quarter valued at about $77,398,000. Marshall Wace North America L.P. purchased a new stake in Fortinet during the first quarter valued at about $77,398,000. Clearbridge Investments LLC boosted its stake in Fortinet by 27.7% in the first quarter. Clearbridge Investments LLC now owns 8,441,783 shares of the software maker’s stock valued at $323,742,000 after buying an additional 1,831,096 shares during the last quarter. Finally, Renaissance Technologies LLC boosted its stake in Fortinet by 45.0% in the first quarter. Renaissance Technologies LLC now owns 3,795,400 shares of the software maker’s stock valued at $145,554,000 after buying an additional 1,177,300 shares during the last quarter. Institutional investors own 72.85% 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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