In recent transactions reported to the Securities and Exchange Commission, Ken Xie, President and CEO of Fortinet , Inc. (NASDAQ:FTNT), sold shares worth approximately $4.43 million over two days. The sales occurred on December 17 and 18, with stock prices ranging from $93.53 to $99.21 per share. The cybersecurity giant, currently valued at $72.57 billion, has seen its stock surge over 59% year-to-date, according to InvestingPro data.
On December 17, Xie sold a total of 22,916 shares, with prices varying between $97.06 and $99.36. The following day, he sold an additional 22,628 shares, with prices ranging from $92.93 to $98.36. These transactions were conducted under a pre-established Rule 10b5-1 trading plan, which allows insiders to set up a trading plan for selling stocks they own. The stock is currently trading near its 52-week high of $100.59, with InvestingPro analysis indicating the company maintains impressive gross profit margins of nearly 80%.
Alongside these sales, Xie exercised options to acquire 83,333 shares at a price of $9.812 each, totaling approximately $817,663. Following these transactions, Xie holds direct ownership of over 49 million shares in Fortinet.
These transactions are part of routine financial management by executives and are often planned in advance to avoid any potential conflicts of interest.
In other recent news, Fortinet, a cybersecurity company, has seen several upgrades from financial firms. KeyBanc Capital Markets upgraded the stock from Sector Weight to Overweight, setting a new price target of $115.00, citing an anticipated industry-wide refresh opportunity in 2025. Scotiabank (TSX:BNS) also increased its stock price target to $110.00, maintaining a Sector Outperform rating, while Rosenblatt Securities raised its price target to $100.00, maintaining a Buy rating. TD Cowen reiterated a Buy rating and increased the stock's price target to $105.
Fortinet's Q3 2024 results showed a 13% increase in total revenue to $1.508 billion, record gross margins of 83.2%, and an operating margin of 36.1%. The company also announced the addition of Janet Napolitano, former U.S. Secretary of Homeland Security and Arizona Governor, to its board of directors.
On another note, Microsoft Corporation (NASDAQ:MSFT) reported a 16% year-on-year increase in Q1 FY2025 revenue, reaching $65.6 billion. Their cloud unit, Microsoft Cloud, also reported robust performance, with revenues surpassing $38.9 billion, marking a 22% increase from the previous year. Analyst firms, including TD Cowen, Citi, Mizuho (NYSE:MFG), and Goldman Sachs, have maintained their positive ratings on Microsoft's stock. These are all recent developments that investors should consider.
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