Fundsmith LLP Cuts Position in Fortinet, Inc. $FTNT

Fundsmith LLP lowered its holdings in Fortinet, Inc. (NASDAQ:FTNT) by 41.0% in the second quarter, according to the company in its most recent disclosure with the SEC. The firm owned 3,629,938 shares of the software maker’s stock after selling 2,526,737 shares during the quarter. Fortinet accounts for about 4.1% of Fundsmith LLP’s holdings, making the stock its 13th biggest position. Fundsmith LLP’s holdings in Fortinet were worth $557,631,000 as of its most recent filing with the SEC.

Other institutional investors also recently made changes to their positions in the company. Moore Capital Management LP purchased a new position in shares of Fortinet in the 2nd quarter valued at about $12,252,000. Sigma Planning Corp boosted its holdings in Fortinet by 1.0% during the second quarter. Sigma Planning Corp now owns 7,927 shares of the software maker’s stock worth $1,218,000 after buying an additional 80 shares in the last quarter. Two Sigma Securities LLC acquired a new position in Fortinet during the second quarter worth about $1,391,000. Benjamin Edwards Inc. acquired a new position in Fortinet during the second quarter worth about $476,000. Finally, Flputnam Investment Management Co. purchased a new position in Fortinet in the second quarter valued at about $202,000. 83.71% of the stock is currently owned by hedge funds and other institutional investors.

Wall Street Analyst Weigh In

FTNT has been the subject of several research analyst reports. Mizuho set a $125.00 price objective on Fortinet and gave the company an “underperform” rating in a research note on Wednesday, July 15th. Weiss Ratings downgraded Fortinet from a “buy (b-)” rating to a “hold (c+)” rating in a research report on Thursday, August 20th. Stephens set a $115.00 target price on Fortinet and gave the company an “equal weight” rating in a report on Thursday, May 7th. Cantor Fitzgerald restated a “neutral” rating on shares of Fortinet in a research report on Monday, August 24th. Finally, DZ Bank downgraded Fortinet from a “hold” rating to a “strong sell” rating in a research note on Thursday, July 30th. Two investment analysts have rated the stock with a Strong Buy rating, nine have assigned a Buy rating, twenty have given a Hold rating and five have assigned a Sell rating to the company’s stock. Based on data from MarketBeat.com, the company currently has an average rating of “Hold” and a consensus target price of $150.91.

Fortinet Stock Performance

NASDAQ FTNT opened at $166.00 on Monday. The company has a quick ratio of 1.19, a current ratio of 1.28 and a debt-to-equity ratio of 0.32. Fortinet, Inc. has a fifty-two week low of $73.55 and a fifty-two week high of $173.89. The business has a fifty day moving average of $157.68 and a 200-day moving average of $120.64. The stock has a market cap of $121.80 billion, a price-to-earnings ratio of 58.45, a price-to-earnings-growth ratio of 3.15 and a beta of 1.07.

Fortinet (NASDAQ:FTNT) last posted its quarterly earnings data on Wednesday, July 29th. The software maker reported $0.90 EPS for the quarter, beating analysts’ consensus estimates of $0.75 by $0.15. Fortinet had a return on equity of 191.54% and a net margin of 28.17%.The business had revenue of $2.05 billion for the quarter, compared to analyst estimates of $1.89 billion. During the same quarter last year, the company earned $0.64 earnings per share. The business’s revenue for the quarter was up 25.6% compared to the same quarter last year. Fortinet has set its FY 2026 guidance at 3.410-3.470 EPS and its Q3 2026 guidance at 0.830-0.870 EPS. As a group, analysts predict that Fortinet, Inc. will post 3.05 earnings per share for the current fiscal year.

Trending Headlines about Fortinet

Here are the key news stories impacting Fortinet this week:

• Positive Sentiment: Fortinet Federal, a wholly owned subsidiary, earned CMMC Level 2 certification after validating 110 NIST SP 800-171 controls. The certification could improve Fortinet’s credibility with U.S. government agencies and defense contractors seeking compliant cybersecurity providers. Fortinet Federal’s New CMMC Level 2 Certification
• Positive Sentiment: Analysts continue to point to platform adoption, artificial-intelligence security products, product expansion and CMMC-related demand as potential growth drivers across enterprise and government markets. Fortinet Stock Surges on Security Platform Momentum
• Positive Sentiment: A new multi-year sponsorship agreement with Stanford Athletics supports Fortinet’s brand visibility, although the financial impact is likely modest compared with its core business. Stanford Athletics and Fortinet Sponsorship
• Neutral Sentiment: Fortinet recently moved above its 20-day moving average, signaling short-term technical momentum. However, technical support can also encourage profit-taking after a large advance. Fortinet Crosses Above Its 20-Day Moving Average
• Negative Sentiment: Valuation is a key overhang. With the stock near its annual high and trading at roughly 58 times earnings, investors may be demanding continued strong execution, leaving limited room for disappointment. Fortinet Valuation Leaves Limited Margin of Safety
• Negative Sentiment: Insider-trading data shows executives made no open-market purchases and reported multiple sales over the past six months. In addition, the reported median analyst price target of $115 is below recent trading levels, reinforcing concerns that expectations may have become excessive.

Insider Transactions at Fortinet

In related news, VP Michael Xie sold 3,121 shares of the firm’s stock in a transaction that occurred on Monday, August 3rd. The shares were sold at an average price of $162.63, for a total transaction of $507,568.23. Following the sale, the vice president owned 9,918,360 shares in the company, valued at approximately $1,613,022,886.80. This trade represents a 0.03% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CEO Ken Xie sold 161,482 shares of Fortinet stock in a transaction on Monday, August 3rd. The shares were sold at an average price of $162.66, for a total value of $26,266,662.12. Following the completion of the sale, the chief executive officer directly owned 52,972,372 shares of the company’s stock, valued at approximately $8,616,486,029.52. This represents a 0.30% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Over the last quarter, insiders have sold 329,142 shares of company stock valued at $50,731,178. Insiders own 17.60% of the company’s stock.

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.