Fortinet Inc. (FTNT) shares are trading at lower $123.18 and the avg recommendation for the stock is Moderate Buy, while the current analyst price target stands at $140.05.
To add more color to this target, the company’s high over the last year is $151.95 and the low is $70.20. Over the last 52 weeks, FTNT is up 53.06% while the S&P 500 is up 12.53%. The catalyst for this interesting swing was the company’s recent earnings report.
A Notable Earnings Report
In the last quarter, FTNT reported a profit of $393.4 million. Fortinet Inc. also saw revenues increase to $521.7 million. In addition, FTNT has free cash flow of $368.9 million as of 06-2019. The company’s EBITDA came in at $114.4 million which compares well with its peers.
FTNT booked profit margins of 17.50%, its Return on Equity (ROE) is 45.60%, and its Return on Assets is 11.80%. All told, it is clear that, FTNT needs to be on your watchlist.
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Of course, we must look beyond the financials and question how well those numbers represent the sustainable earnings power of the business. Investors need to know how sustainable this current run. FTNT has a short ratio of 4.06 and outstanding shares of 161.60M.
FTNT has seen increased volume after this news and investors are putting their support behind the value proposition. Furthermore, 10-day volume stands at 1.03 million and more growth is possible in the weeks ahead. Traders will also note the company’s earnings per share came in at 2.38. Fortinet Inc. FTNT also noted assets of $3.37 billion at the end of the last quarter. Investors should also keep an eye on sector updates as FTNT has historically followed its peers on positive news.
All told, Fortinet Inc. FTNT has strung together solid data and demonstrated underlying fundamentals. At its current valuation, FTNT represents an interesting risk/reward case. Traders should stay tuned to see if this recent report will push the stock to test recent resistance levels.
Fortinet Inc. FTNT is now commanding a market cap of 19.60B and a float of 135.09M. FTNT is increasing its credibility in this sector and that could lead to more upside down the line. Sign-up for continuing coverage on shares of FTNT stock, as well as other hot stock picks, get our free newsletter today and get our next breakout pick!
Disclosure: we hold no position in FTNT, either long or short, and we have not been compensated for this article.