As of Thursday close, Fortinet Inc.’s (NASDAQ:FTNT) stock was down -$0.77, moving down -1.32 percent to $57.41. The average number of shares traded per day over the past five days has been 6,177,700 shares. 1 time new highs have been achieved over the past 5 days, with a -$3.15 fall in that time frame. In the last twenty days, the average volume was 8,338,545, while in the previous 50 days, it was 6,553,724.
Since last month, FTNT stock retreated -27.04%. Shares of the company fell to $56.10 on 08/04/23, the lowest level in the past month. A 52-week high of $81.24 was reached on 07/19/23 after having rallying from a 52-week low of $42.61. Since the beginning of this year, FTNT’s stock price has risen by 17.43% or $8.52, and marked a new high 34 times. However, the stock has declined by -29.33% since its 52-week high.
FTNT stock investors should be aware that Fortinet Inc. (FTNT) stock had its last reported insider trading activity 15 days ago on Aug 03. Perche Patrice, the Chief Revenue Off./EVP Supp. of the company, disposed of 8,923 shares for $75.32 on Aug 03. It resulted in a $672,051 divestment by the insider. Xie Michael sold 5,885 shares at an average price of $75.05 on Aug 02. The insider now owns 29,727,018 shares following the transaction. On Jul 21, Chief Revenue Off./EVP Supp. Perche Patrice sold 7,530 shares at $78.49 apiece. The transaction was valued at $590,994.
Valuation Metrics
Right now, Fortinet Inc. (FTNT) has a P/E ratio of about 43.07. The stock’s beta is 1.19. Besides these, the trailing price-to-sales (P/S) ratio of 9.17, the price-to-book (PB) ratio of 140.02, and the price-to-cash flow ratio of 23.13 may also be considered.
Financial Health
In the three months ended June 29, Fortinet Inc.’s quick ratio stood at 1.30, while its current ratio was 1.40, showing that the company is able to pay off its debt. According to company report, the long-term debt-to-equity ratio for the quarter ending June 29 was 3.09, and the total debt-to-equity ratio was 3.09. On the profitability front, the trailing twelve-month gross margin is 76.30% percent. In the year ended June 29, EBITDA margin amounted to 24.21%, whereas operating margins totaled 23.60%. Based on annual data, FTNT earned $3.33 billion in gross profit and brought in $4.42 billion in revenue.
A company’s management is another factor that investors consider when determining the profitability of an investment. In the past year, return on investment (ROI) was 132.40%. Return on equity (ROE) for the past 12 months was -726.00%.
In Fortinet Inc.’s quarter-end financial report for June 29, it reported total debt of $991.3 million against cash and short-term investments of $915.1 million. According to the earnings report, the company had a higher net income in the recent quarter than it did in the previous quarter. FTNT’s revenue rose 20.27% to $1.26 billion during the quarter, while net income inched up to $1.29 billion. While analysts expected Fortinet Inc. to report $0.34 quarterly earnings, the actual figure was $0.38 per share, beating the consensus estimate by 11.80%. During the quarter, the company generated $366.2 million in EBITDA. The liabilities of Fortinet Inc. were 7.16 billion at the end of its most recent quarter ended June 29, and its total debt was $1.06 billion. The value of shareholders’ equity is $785.34 million.
Technical Picture
This quick technical analysis looks at Fortinet Inc.’s (FTNT) price momentum. With a historical volatility rate of 22.46%, the RSI 9-day stood at 22.68% on 17 August.
With respect to its five-day moving average, the current Fortinet Inc. price is down by -5.20% percent or -$3.15. At present, FTNT shares trade -26.11% below its 20-day simple moving average and -8.86% percent below its 100-day simple moving average. However, the stock is currently trading approximately -17.44% below its SMA50 and +0.54% above its SMA200.
Stochastic coefficient K was 9.58% and Stochastic coefficient D was 12.50%, while ATR was 2.43. Given the Stochastic reading of 5.83% for the 14-day period, the RSI (14) reading has been calculated as 26.73%. As of today, the MACD Oscillator reading stands at -0.71, while the 14-day reading stands at -5.55.
Analyst Ratings
Guggenheim upgraded its rating on Fortinet Inc. (NASDAQ: FTNT) to a Buy in a note to investors on August 07, 2023. The analysts firm previously had a Neutral rating on the stock.Fortinet Inc. (FTNT) has been rated Overweight by analysts. According to 0 brokerage firms, FTNT is a sell, and 12 firms recommend it is a Hold. There are 0 analysts who say the stock is underweight. A total of 4 analysts rate Fortinet Inc. stock as buy, with 19 recommending it as overweight.
With a median target price of $74.50, the current consensus forecast for the stock is $65.00 – $95.00. Based on these forecasts, analysts predict Fortinet Inc. (FTNT) will achieve an average price target of $75.67.
