The stock price of Fortinet Inc (NASDAQ: FTNT) has jumped by 2.43 compared to previous close of 69.23. Despite this, the company has seen a gain of 3.81% in its stock price over the last five trading days. The Motley Fool reported 2024-04-07 that Zscaler is still firing on all cylinders in a tough market. Fortinet is ramping up its spending as its growth cools off.
Is It Worth Investing in Fortinet Inc (NASDAQ: FTNT) Right Now?
Fortinet Inc (NASDAQ: FTNT) has a higher price-to-earnings ratio of 48.65x compared to its average ratio. FTNT has 36-month beta value of 1.07. Analysts have mixed views on the stock, with 15 analysts rating it as a “buy,” 6 as “overweight,” 7 as “hold,” and 2 as “sell.”
The public float for FTNT is 629.20M, and currently, short sellers hold a 2.11% ratio of that float. The average trading volume of FTNT on April 08, 2024 was 6.23M shares.
FTNT’s Market Performance
The stock of Fortinet Inc (FTNT) has seen a 3.81% increase in the past week, with a -0.57% drop in the past month, and a 21.44% gain in the past quarter. The volatility ratio for the week is 4.30%, and the volatility levels for the past 30 days are at 2.75% for FTNT. The simple moving average for the last 20 days is 2.74% for FTNT’s stock, with a simple moving average of 12.14% for the last 200 days.
Analysts’ Opinion of FTNT
Many brokerage firms have already submitted their reports for FTNT stocks, with Daiwa Securities repeating the rating for FTNT by listing it as a “Outperform.” The predicted price for FTNT in the upcoming period, according to Daiwa Securities is $75 based on the research report published on February 13, 2024 of the current year 2024.
HSBC Securities gave a rating of “Reduce” to FTNT, setting the target price at $57 in the report published on February 07th of the current year.
FTNT Trading at 3.46% from the 50-Day Moving Average
After a stumble in the market that brought FTNT to its low price for the period of the last 52 weeks, the company was unable to rebound, for now settling with -12.72% of loss for the given period.
Volatility was left at 2.75%, however, over the last 30 days, the volatility rate increased by 4.30%, as shares sank -2.96% for the moving average over the last 20 days. Over the last 50 days, in opposition, the stock is trading +7.26% upper at present.
During the last 5 trading sessions, FTNT rose by +3.81%, which changed the moving average for the period of 200-days by -1.05% in comparison to the 20-day moving average, which settled at $68.91. In addition, Fortinet Inc saw 21.15% in overturn over a single year, with a tendency to cut further gains.
Insider Trading
Reports are indicating that there were more than several insider trading activities at FTNT starting from Xie Ken, who sale 23,699 shares at the price of $70.75 back on Mar 13 ’24. After this action, Xie Ken now owns 48,642,973 shares of Fortinet Inc, valued at $1,676,724 using the latest closing price.
Xie Ken, the PRESIDENT & CEO of Fortinet Inc, sale 23,694 shares at $71.40 during a trade that took place back on Mar 12 ’24, which means that Xie Ken is holding 48,625,005 shares at $1,691,692 based on the most recent closing price.
Stock Fundamentals for FTNT
Current profitability levels for the company are sitting at:
- 0.23 for the present operating margin
- 0.77 for the gross margin
The net margin for Fortinet Inc stands at 0.22. The total capital return value is set at 0.35. Equity return is now at value 843.82, with 17.02 for asset returns.
Based on Fortinet Inc (FTNT), the company’s capital structure generated 1.82 points at debt to capital in total, while cash flow to debt ratio is standing at 1.89. The debt to equity ratio resting at -2.21. The interest coverage ratio of the stock is 121.68.
Currently, EBITDA for the company is 1.35 billion with net debt to EBITDA at -0.29. When we switch over and look at the enterprise to sales, we see a ratio of 10.12. The receivables turnover for the company is 3.78for trailing twelve months and the total asset turnover is 0.73. The liquidity ratio also appears to be rather interesting for investors as it stands at 1.19.
Conclusion
To put it simply, Fortinet Inc (FTNT) has had a better performance in recent times. Analysts have a mixed opinion on the stock, with some rating it as a “buy” and others as a “hold”. It is worth mentioning that the stock is currently trading in close proximity to its 50-day moving average and its 52-week high.
