Shareholder returns and stock trends
Fortinet (FTNT) has generated returns of 85.51% in the trailing 12-month (or TTM) period and 14.59% in the trailing one-month period. In comparison, it generated 60.27% returns in 2014. Peers FireEye (FEYE) and Check Point Software Technologies (CHKP) have gained 31.58% and 18.62%, respectively, in the TTM period.
However, Fortinet has seen its operating margins fall an average of 7% in the last five years. While the company has an asset growth of 42%, its revenue growth is 19.3% over the past five years, which could indicate operating inefficiency.
On August 6, 2015, Fortinet’s last trading price was $46.64. The company was trading 12.71%, 18.29%, and 36.77% above 20-day, 50-day, and 100-day moving averages of $45.15, $42.81, and $39.74, respectively.
Moving average convergence divergence and relative strength index
The MACD (moving average convergence divergence) is the difference between a company’s short-term and long-term moving averages. Fortinet’s 14-day MACD is 1.28, which shows an upward trading trend, as the figure is negative.
Fortinet’s 14-day RSI (relative strength index) is 59.10, which shows that the stock is neither overbought nor oversold. Generally, if the RSI is above 70, it indicates the stock is overbought. An RSI figure below 30 suggests that a stock has been oversold.
Of the 34 analysts that cover Fortinet stock, 24 have given it a “buy” recommendation, one has given it a “sell” recommendation, and nine have recommended “hold.” The analyst stock price target for Fortinet is $51.50 with a median target estimate of $52. Fortinet is thus trading at a discount of 9.79% with respect to its median target and looks to be an attractive buy at current levels.