On September 21, 2023, Patrice Perche, Chief Revenue Officer and EVP Support of Fortinet Inc (FTNT, Financial), sold 7,530 shares of the company. This move is part of a larger trend, as over the past year, the insider has sold a total of 646,089 shares and purchased none.
Fortinet Inc is a leading cybersecurity company that provides broad, integrated, and automated cybersecurity solutions. The company's product offerings consist of its FortiGate product family, along with a wide range of software and services. These solutions are designed to protect enterprises, service providers, and government organizations from network, content, and application-level security threats.
The insider's recent sell has raised questions about the company's stock performance and its relationship with insider trading activities. Over the past year, there have been 3 insider buys and 21 insider sells for Fortinet Inc. This trend suggests a more bearish sentiment among the company's insiders.
On the day of the insider's recent sell, shares of Fortinet Inc were trading at $59.1 each, giving the company a market cap of $45.74 billion. The stock's price-earnings ratio stands at 44.15, higher than the industry median of 27.11 but lower than the company's historical median price-earnings ratio.
According to the GuruFocus Value, which is an intrinsic value estimate based on historical multiples, a GuruFocus adjustment factor, and future business performance estimates, Fortinet Inc is modestly undervalued. The stock's price-to-GF-Value ratio is 0.74, with a GF Value of $80.35.
Despite the insider's recent sell, the undervaluation of Fortinet Inc's stock suggests potential for growth. However, the high number of insider sells over the past year may indicate caution. Investors should keep a close eye on the company's performance and insider trading activities to make informed decisions.
As always, insider trading activities should not be used as a sole decision-making factor for investing. It's crucial to consider a company's financial health, market position, and industry trends before making investment decisions.
