Noteworthy Price Action: Fortinet Inc’s Trend Down, Especially After Today’s Gap Down

Noteworthy Price Action: Fortinet Inc's Trend Down, Especially After Today's Gap Down

The stock of Fortinet Inc (NASDAQ:FTNT) gapped down by $2.85 today and has $28.25 target or 8.00% below today’s $30.71 share price. The 5 months technical chart setup indicates high risk for the $5.16 billion company. The gap down was reported on Oct, 12 by If the $28.25 price target is reached, the company will be worth $412.80M less.
Gaps down are helpful for identifying a resistance level and to could also be used as a tradeable event. If traders are short the stock and it experiece gap down, then its usually advisable to hold the short for a bigger down move. Back-tests of such patterns show that two-thirds of the these patterns the stock performance worsens after the gap. The area gaps close 91% of the time, the breakaway gaps 1%, the continuation gaps 9% and the exhaustion gaps 64%. About 20.02 million shares traded hands or 1261.90% up from the average. Fortinet Inc (NASDAQ:FTNT) has risen 23.20% since March 9, 2016 and is uptrending. It has outperformed by 15.79% the S&P500.

Analysts await Fortinet Inc (NASDAQ:FTNT) to report earnings on October, 27. They expect $0.05 earnings per share, up 25.00% or $0.01 from last year’s $0.04 per share. FTNT’s profit will be $8.40 million for 153.55 P/E if the $0.05 EPS becomes a reality. After $0.03 actual earnings per share reported by Fortinet Inc for the previous quarter, Wall Street now forecasts 66.67% EPS growth.

Fortinet Inc (NASDAQ:FTNT) Ratings Coverage

Out of 23 analysts covering Fortinet Inc. (NASDAQ:FTNT), 16 rate it a “Buy”, 0 “Sell”, while 7 “Hold”. This means 70% are positive. Fortinet Inc. has been the topic of 45 analyst reports since July 23, 2015 according to StockzIntelligence Inc. Evercore initiated the stock with “Hold” rating in Thursday, April 14 report. FBR Capital maintained Fortinet Inc (NASDAQ:FTNT) on Tuesday, August 25 with “Outperform” rating. The company was maintained on Wednesday, October 12 by RBC Capital Markets. On Tuesday, August 30 the stock rating was upgraded by Pacific Crest to “Overweight”. Cowen & Co upgraded the shares of FTNT in a report on Monday, December 14 to “Market Perform” rating. The rating was maintained by Oppenheimer on Thursday, July 23 with “Outperform”. The stock of Fortinet Inc (NASDAQ:FTNT) has “Neutral” rating given on Wednesday, January 20 by Piper Jaffray. Topeka Capital Markets maintained the shares of FTNT in a report on Friday, January 29 with “Hold” rating. Topeka Capital Markets maintained Fortinet Inc (NASDAQ:FTNT) rating on Monday, October 26. Topeka Capital Markets has “Hold” rating and $40 price target. The firm has “Buy” rating given on Friday, October 23 by UBS.

According to Zacks Investment Research, “Fortinet, Inc., headquartered in Sunnyvale, California, is a provider of network security appliances and Unified Threat Management network security solutions to enterprises, service providers and government entities worldwide. Its solutions are designed to integrate multiple levels of security protection, including firewall, virtual private networking, antivirus, intrusion prevention, Web filtering, antispam and wide area network acceleration. Through its products and subscription services, the company provides integrated protection against dynamic security threats while simplifying the IT security infrastructure. Its solution incorporates the application-specific integrated circuits, hardware architecture, operating system, and set of associated security and networking functions to defend against multiple categories of IT security attacks without impacting network performance. Its flagship UTM solution consists of FortiGate appliance product line and FortiGuard security subscription services.”

More important recent Fortinet Inc (NASDAQ:FTNT) news were published by: which released: “Analyst Downgrades: Fortinet Inc, Valeant Pharmaceuticals Intl Inc, and Xilinx …” on October 12, 2016, also published article titled: “Fortinet Inc. (FTNT) Is Falling After Q3 Guidance Lowered”, published: “Top Analyst Upgrades and Downgrades: AMD, Corrections Corp, Fortinet, Motorola …” on October 12, 2016. More interesting news about Fortinet Inc (NASDAQ:FTNT) was released by: and their article: “Mid-Day Market Update: Barracuda Networks Surges On Earnings Beat; Fortinet …” with publication date: October 12, 2016.

FTNT Company Profile

Fortinet, Inc., incorporated on November 28, 2000, provides cyber security solutions to enterprises, service providers and government organizations across the world. The Company’s flagship network security solution consists of FortiGate physical, virtual machine and cloud platforms, which provide integrated security and networking functions to protect data, applications and users from network-and content-level security threats. The Company’s product offerings consist of its FortiGate product family, along with its FortiManager central management and FortiAnalyzer central logging and reporting product families.

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