Fortinet (NASDAQ:FTNT) Shares Down 5.3% – Should You Sell?

Fortinet, Inc. (NASDAQ:FTNT)’s share price fell 5.3% during trading on Friday . The company traded as low as $76.88 and last traded at $76.3890. 2,033,663 shares changed hands during trading, a decline of 69% from the average session volume of 6,609,344 shares. The stock had previously closed at $80.66.

Wall Street Analyst Weigh In

A number of research firms have recently commented on FTNT. UBS Group reissued a “neutral” rating and set a $90.00 price target on shares of Fortinet in a report on Friday, February 6th. Wedbush reissued an “outperform” rating and set a $90.00 price target on shares of Fortinet in a report on Friday, February 6th. Royal Bank Of Canada reissued a “sector perform” rating and set a $90.00 price target (up from $85.00) on shares of Fortinet in a report on Friday, February 6th. Stifel Nicolaus set a $85.00 price objective on Fortinet in a research report on Wednesday, March 11th. Finally, Robert W. Baird set a $90.00 price objective on Fortinet in a research report on Friday, February 6th. Five equities research analysts have rated the stock with a Buy rating, twenty-two have issued a Hold rating and four have given a Sell rating to the company’s stock. According to MarketBeat.com, Fortinet currently has a consensus rating of “Hold” and a consensus price target of $87.84.

Fortinet Price Performance

The firm has a market cap of $57.19 billion, a P/E ratio of 31.78, a price-to-earnings-growth ratio of 2.87 and a beta of 1.00. The company has a current ratio of 1.17, a quick ratio of 1.09 and a debt-to-equity ratio of 0.40. The business has a 50-day moving average of $81.86 and a two-hundred day moving average of $81.97.

Fortinet (NASDAQ:FTNT) last issued its quarterly earnings data on Thursday, February 5th. The software maker reported $0.81 earnings per share for the quarter, topping analysts’ consensus estimates of $0.74 by $0.07. Fortinet had a return on equity of 124.21% and a net margin of 27.26%.The business had revenue of $1.91 billion for the quarter, compared to analyst estimates of $1.86 billion. During the same quarter in the previous year, the company posted $0.74 EPS. Fortinet’s quarterly revenue was up 14.8% compared to the same quarter last year. Fortinet has set its Q1 2026 guidance at 0.590-0.630 EPS and its FY 2026 guidance at 2.940-3.000 EPS. On average, sell-side analysts anticipate that Fortinet, Inc. will post 2.09 earnings per share for the current fiscal year.

Insider Transactions at Fortinet

In other news, CEO Ken Xie sold 175,737 shares of the business’s stock in a transaction dated Monday, February 2nd. The stock was sold at an average price of $81.42, for a total value of $14,308,506.54. Following the transaction, the chief executive officer directly owned 51,396,385 shares of the company’s stock, valued at $4,184,693,666.70. The trade was a 0.34% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, VP Michael Xie sold 343,106 shares of the business’s stock in a transaction dated Monday, February 2nd. The shares were sold at an average price of $81.42, for a total value of $27,935,690.52. Following the completion of the transaction, the vice president directly owned 10,210,282 shares in the company, valued at $831,321,160.44. This represents a 3.25% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders own 17.20% of the company’s stock.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently made changes to their positions in the business. Financial Consulate Inc. acquired a new position in shares of Fortinet in the 3rd quarter valued at about $25,000. Steigerwald Gordon & Koch Inc. acquired a new position in Fortinet during the 3rd quarter worth approximately $25,000. Pinnacle Holdings LLC acquired a new position in Fortinet during the 3rd quarter worth approximately $25,000. Ameriflex Group Inc. acquired a new position in Fortinet during the 3rd quarter worth approximately $25,000. Finally, Wexford Capital LP acquired a new position in Fortinet during the 3rd quarter worth approximately $25,000. 83.71% of the stock is owned by institutional investors and hedge funds.

About Fortinet

Fortinet, Inc (NASDAQ: FTNT) is a multinational cybersecurity company that develops and delivers integrated security solutions for enterprise, service provider and government customers worldwide. Founded in 2000 and headquartered in Sunnyvale, California, the company was co‑founded by Ken Xie and Michael Xie. Ken Xie serves as chairman and chief executive officer, and the company operates through a global sales, channel and services organization to support customers across the Americas, EMEA and Asia‑Pacific.

Fortinet’s product portfolio centers on network security appliances and software, with its FortiGate next‑generation firewalls and the FortiOS operating system forming a core platform.