Fortinet Inc. (NASDAQ: FTNT) growth is a big Buy opportunity

Fortinet Inc. (NASDAQ: FTNT) is 25.82% higher on its value in year-to-date trading and has touched a low of $70.20 and a high of $149.69 in the current 52-week trading range. The FTNT stock was last observed hovering at around $134.33 in the last trading session, with the day’s gains setting it 1.5% off its average median price target of $127.00 for the next 12 months. It is also 20.1% off the consensus price target high of $170.00 offered by 28 analysts, but current levels are -49.26% lower than the price target low of $91.00 for the same period.

Currently trading at $135.83, the stock is -1.34% and 5.71% above its SMA20 and SMA50 respectively. However, with a daily trading volume of 1.12 million and changing 1.12% at the moment leaves the stock 28.06% off its SMA200. FTNT registered 79.42% gain for a year compared to 6-month gain of 24.59%. The firm has a 50-day simple moving average (SMA 50) of $137.83 and a 200-day simple moving average (SMA200) of $114.71.

The stock witnessed a -2.33% loss in the last 1 month and extending the period to 3 months gives it a 38.57%, and is -0.85% down over the last 5 days. If we measure the stock’s price variations over the week and the month, we find that the volatility rates stand at 4.54% over the week and 4.41% over the month.

Fortinet Inc. (FTNT) has around 7082 employees, a market worth around $21.54B and $2.26B in sales. Current P/E ratio is 63.54 and Fwd P/E is 40.79. Profit margin for the company is 16.40%. Distance from 52-week low is 93.49% and -9.26% from its 52-week high. The company has generated returns on investments over the last 12 months (21.60%).

Fortinet Inc. (FTNT) Analyst Forecasts

Analyst recommendations provided by FactSet shows that the consensus forecast for Fortinet Inc. (FTNT) is a “Overweight”. 28 analysts offering their recommendations for the stock have an average rating of 2.30, where 14 rate it as a Hold and 0 think it is a “Overweight”. 12 of the analysts rate the stock as a “Buy”. 1 analysts have rated the stock as a Sell or Underperform.

Fortinet Inc. is expected to release its quarterly report on 07/22/2020 and quarterly earnings per share for the current quarter are estimated at $0.65 with sales reaching $599.04M over the same period.The EPS is expected to shrink by -11.50% this year, but quarterly earnings will post 16.00% year-over-year. Quarterly sales are estimated to grow 17.20% in year-over-year returns.

Fortinet Inc. (FTNT) Top Institutional Holders

921 institutions hold shares in Fortinet Inc. (FTNT), with 26.93M shares held by insiders accounting for 16.66% while institutional investors hold 94.93% of the company’s shares. The shares outstanding are 170.60M, and float is at 134.90M with Short Float at 3.92%. Institutions hold 79.12% of the Float.

The top institutional shareholder in the company is Vanguard Group, Inc. (The) with over 17.69 million shares valued at $1.79 billion. The investor’s holdings represent 10.94% of the FTNT Shares outstanding. As of Mar 30, 2020, the second largest holder is Blackrock Inc. with 11.18 million shares valued at $1.13 billion to account for 6.92% of the shares outstanding. The other top investors are Renaissance Technologies, LLC which holds 6.06 million shares representing 3.75% and valued at over $613.53 million, while State Street Corporation holds 3.60% of the shares totaling 5.82 million with a market value of $588.69 million.

Fortinet Inc. (FTNT) Insider Activity

A total of 166 insider transactions have happened at Fortinet Inc. (FTNT) in the last six months, with sales accounting for 96 and purchases happening 70 times. The most recent transaction is an insider sale by Whittle John, the company’s VP Corp Dev&Strat Alliance,GC. SEC filings show that Whittle John sold 2,540 shares of the company’s common stock on Jun 22 at a price of $140.71 per share for a total of $0.36 million. Following the sale, the insider now owns 1269.0 shares.

Fortinet Inc. disclosed in a document filed with the SEC on May 26 that Xie Michael (VP, Engineering & CTO) sold a total of 30,000 shares of the company’s common stock. The trade occurred on May 26 and was made at $140.43 per share for $4.21 million. Following the transaction, the insider now directly holds 3.57 million shares of the FTNT stock.

Still, SEC filings show that on May 26, Xie Michael (VP, Engineering & CTO) disposed off 30,000 shares at an average price of $140.17 for $4.21 million. The insider now directly holds 6,136,000 shares of Fortinet Inc. (FTNT).

Fortinet Inc. (FTNT): Who are the competitors?

The company’s main competitors (and peers) include Check Point Software Technologies Ltd. (CHKP) that is trading -7.94% down over the past 12 months. FireEye Inc. (FEYE) is -19.35% down on the 1-year trading charts. Short interest in the company’s stock has risen 1.12% from the last report on May 14, 2020 to stand at a total of 5.32 million short shares sold with a short interest ratio of 3.28.