Analysis of Fortinet Inc. (NASDAQ:FTNT): Selected Notes

Fortinet Inc. (NASDAQ: FTNT) closed the day trading at $53.61 down -3.20% from the previous closing price of $55.38. In other words, the price has decreased by -$1.77 from its previous closing price. On the day, 4684367 shares were traded. FTNT stock price reached its highest trading level at $54.36 during the session, while it also had its lowest trading level at $52.96.

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For a better understanding of FTNT, let’s look at its different ratios. It provided that stocks Price–to–Cash (P/C) ratio for the trailing twelve months (TTM) is standing at 23.72 whereas its Price-to-Free Cash Flow (P/FCF) for the term is 35.15. For the most recent quarter (mrq), Quick Ratio is recorded 1.00 and its Current Ratio is at 1.10.

Upgrades & Downgrades

On October 10, 2022, Morgan Stanley Upgraded its rating to Overweight which previously was Equal-Weight and also upped its target price recommendation from $66 to $69.

On October 07, 2022, SMBC Nikko started tracking the stock assigning a Outperform rating and target price of $70.SMBC Nikko initiated its Outperform rating on October 07, 2022, with a $70 target price.

Insider Transactions:

The insider trade also gives investors a glimpse into the future direction of stock prices, which can be beneficial to investors. A recent insider transaction in this stock occurred on Nov 18 when Jensen Keith sold 200 shares for $55.60 per share. The transaction valued at 11,120 led to the insider holds 10,920 shares of the business.

Jensen Keith sold 50 shares of FTNT for $2,673 on Nov 17. The CFO & Chief Accounting Officer now owns 11,120 shares after completing the transaction at $53.46 per share. On Nov 11, another insider, Whittle John, who serves as the VP Corp Dev&Strat Alliance,GC of the company, sold 3,125 shares for $55.00 each. As a result, the insider received 171,875 and left with 12,876 shares of the company.

Valuation Measures:

As of this moment, Fortinet’s Price-to-Earnings (P/E) ratio for their current fiscal year is 58.85, and their Forward P/E ratio for the next fiscal year is 38.35. The expected Price-to-Earnings-to-Growth (PEG) calculation for the next 5 years is 2.52. For the stock, the TTM Price-to-Sale (P/S) ratio is 10.02.

Stock Price History:

Over the past 52 weeks, FTNT has reached a high of $74.35, while it has fallen to a 52-week low of $42.61. The 50-Day Moving Average of the stock is 52.17, while the 200-Day Moving Average is calculated to be 56.76.

Shares Statistics:

Over the past 3-months, FTNT traded about 5.56M shares per day on average, while over the past 10 days, FTNT traded about 5.03M shares per day. A total of 786.20M shares are outstanding, with a floating share count of 633.43M. Insiders hold about 12.00% of the company’s shares, while institutions hold 67.80% stake in the company. Shares short for FTNT as of Oct 13, 2022 were 9.09M with a Short Ratio of 10.36M, compared to 12.16M on Sep 14, 2022. Therefore, it implies a Short% of Shares Outstanding of 1.15% and a Short% of Float of 1.42%.

Earnings Estimates

Current recommendations for the stock of the company come from 27 analysts. On average, analysts expect EPS of $0.27 for the current quarter, with a high estimate of $0.28 and a low estimate of $0.27, while EPS last year was $0.2. The consensus estimate for the next quarter is $0.35, with high estimates of $0.36 and low estimates of $0.33.

Analysts are recommending an EPS of between $1.12 and $1.03 for the fiscal current year, implying an average EPS of $1.05. EPS for the following year is $1.31, with 30 analysts recommending between $1.5 and $1.2.

Revenue Estimates

25 analysts predict $1.12B in revenue for the current quarter. It ranges from a high estimate of $1.14B to a low estimate of $1.12B. As of the current estimate, Fortinet Inc.’s year-ago sales were $811.5M, an estimated increase of 38.40% from the year-ago figure. For the next quarter, 25 analysts are estimating revenue of $1.27B, an increase of 32.10% less than the figure of $38.40% in the same quarter last year. There is a high estimate of $1.29B for the next quarter, whereas the lowest estimate is $1.25B.

A total of 32 analysts have provided revenue estimates for FTNT’s current fiscal year. The highest revenue estimate was $4.41B, while the lowest revenue estimate was $4.36B, resulting in an average revenue estimate of $4.38B. In the same quarter a year ago, actual revenue was $3.34B, up 31.20% from the average estimate. Based on 32 analysts’ estimates, the company’s revenue will be $5.34B in the next fiscal year. The high estimate is $5.68B and the low estimate is $5.08B. The average revenue growth estimate for next year is up 21.90% from the average revenue estimate for this year.