Fortinet (NASDAQ:FTNT) Releases Quarterly Earnings Results, Beats Estimates By $0.11 EPS

Fortinet (NASDAQ:FTNT) announced its quarterly earnings results on Wednesday. The software maker reported $0.74 EPS for the quarter, beating analysts’ consensus estimates of $0.63 by $0.11, FiscalAI reports. Fortinet had a return on equity of 111.46% and a net margin of 30.60%.The company had revenue of $1.72 billion during the quarter, compared to analysts’ expectations of $1.70 billion. During the same period in the prior year, the company earned $0.63 EPS. Fortinet’s revenue was up 14.4% compared to the same quarter last year. Fortinet updated its FY 2025 guidance to 2.660-2.700 EPS and its Q4 2025 guidance to 0.730-0.750 EPS.

Fortinet Trading Down 6.3%

Shares of Fortinet stock traded down $5.45 during trading on Thursday, hitting $80.54. The company’s stock had a trading volume of 13,367,840 shares, compared to its average volume of 5,595,589. The company has a debt-to-equity ratio of 0.24, a current ratio of 1.33 and a quick ratio of 1.24. Fortinet has a 52 week low of $70.12 and a 52 week high of $114.82. The stock has a market cap of $61.72 billion, a price-to-earnings ratio of 32.09, a price-to-earnings-growth ratio of 3.17 and a beta of 1.08. The stock has a 50-day moving average price of $83.07 and a two-hundred day moving average price of $93.28.

Insider Buying and Selling at Fortinet

In other Fortinet news, CEO Ken Xie sold 158,485 shares of the company’s stock in a transaction on Monday, November 3rd. The shares were sold at an average price of $86.51, for a total transaction of $13,710,537.35. Following the sale, the chief executive officer owned 51,391,879 shares of the company’s stock, valued at approximately $4,445,911,452.29. This represents a 0.31% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. Also, VP Michael Xie sold 3,546 shares of the company’s stock in a transaction on Monday, November 3rd. The shares were sold at an average price of $86.53, for a total transaction of $306,835.38. Following the sale, the vice president directly owned 10,492,018 shares in the company, valued at $907,874,317.54. This trade represents a 0.03% decrease in their position. The SEC filing for this sale provides additional information. Insiders own 17.20% of the company’s stock.

Institutional Trading of Fortinet

Institutional investors have recently bought and sold shares of the company. Bison Wealth LLC bought a new stake in Fortinet during the fourth quarter valued at $585,000. Brighton Jones LLC boosted its position in Fortinet by 2.2% during the fourth quarter. Brighton Jones LLC now owns 10,327 shares of the software maker’s stock valued at $976,000 after acquiring an additional 221 shares during the last quarter. Diversify Advisory Services LLC bought a new stake in Fortinet during the second quarter valued at $1,136,000. Florida Financial Advisors LLC boosted its position in Fortinet by 58.1% during the second quarter. Florida Financial Advisors LLC now owns 9,851 shares of the software maker’s stock valued at $1,041,000 after acquiring an additional 3,620 shares during the last quarter. Finally, Prevail Innovative Wealth Advisors LLC bought a new stake in Fortinet during the second quarter valued at $937,000. Institutional investors own 83.71% of the company’s stock.

Analyst Upgrades and Downgrades

Several equities research analysts recently weighed in on FTNT shares. BMO Capital Markets cut their price objective on Fortinet from $110.00 to $90.00 and set a “market perform” rating on the stock in a report on Thursday, August 7th. Scotiabank cut their price objective on Fortinet from $115.00 to $85.00 and set a “sector outperform” rating on the stock in a report on Thursday, August 7th. Wells Fargo & Company cut their price objective on Fortinet from $110.00 to $85.00 and set an “equal weight” rating on the stock in a report on Thursday, August 7th. Mizuho cut their price objective on Fortinet from $75.00 to $72.00 and set an “underperform” rating on the stock in a report on Thursday. Finally, Stifel Nicolaus cut their price objective on Fortinet from $95.00 to $85.00 and set a “hold” rating on the stock in a report on Thursday, August 7th. Two equities research analysts have rated the stock with a Strong Buy rating, seven have given a Buy rating, twenty-six have issued a Hold rating and two have issued a Sell rating to the stock. According to data from MarketBeat.com, the stock currently has a consensus rating of “Hold” and a consensus price target of $92.57.

About Fortinet

Fortinet, Inc provides cybersecurity and convergence of networking and security solutions worldwide. It offers secure networking solutions focus on the convergence of networking and security; network firewall solutions that consist of FortiGate data centers, hyperscale, and distributed firewalls, as well as encrypted applications; wireless LAN solutions; and secure connectivity solutions, including FortiSwitch secure ethernet switches, FortiAP wireless local area network access points, FortiExtender 5G connectivity gateways, and other products.