Is Fortinet Inc (FTNT) Going to Burn You?

Page 1 of 2

Fortinet Inc (NASDAQ:FTNT) investors: listen up.

At the moment, there are plenty of indicators investors can use to analyze stocks. Two of the most useful are hedge fund and insider trading activity. At Insider Monkey, our studies have shown that, historically, those who follow the best picks of the top hedge fund managers can outclass their index-focused peers by a very impressive amount (see just how much).

Fortinet Inc (NASDAQ:FTNT)

Equally as key, bullish insider trading activity is another way to analyze the financial markets. There are lots of reasons for an executive to sell shares of his or her company, but only one, very simple reason why they would initiate a purchase. Several empirical studies have demonstrated the useful potential of this tactic if piggybackers understand what to do (learn more here).

What’s more, let’s examine the latest info about Fortinet Inc (NASDAQ:FTNT).

What does the smart money think about Fortinet Inc (NASDAQ:FTNT)?

At the end of the second quarter, a total of 27 of the hedge funds we track were bullish in this stock, a change of -31% from the previous quarter. With the smart money’s capital changing hands, there exists a select group of notable hedge fund managers who were increasing their holdings considerably.

Out of the hedge funds we follow, Lee Ainslie’s Maverick Capital had the largest position in Fortinet Inc (NASDAQ:FTNT), worth close to $208.7 million, comprising 2.8% of its total 13F portfolio. The second largest stake is held by Eminence Capital, managed by Ricky Sandler, which held a $59.3 million position; 1.5% of its 13F portfolio is allocated to the stock. Some other peers with similar optimism include John Lykouretzos’s Hoplite Capital Management, Brett Barakett’s Tremblant Capital and D. E. Shaw’s D E Shaw.

Since Fortinet Inc (NASDAQ:FTNT) has experienced dropping sentiment from the top-tier hedge fund industry, it’s easy to see that there was a specific group of hedgies who were dropping their entire stakes in Q1. Interestingly, Josh Resnick’s Jericho Capital Asset Management sold off the biggest stake of the 450+ funds we track, comprising close to $23 million in stock, and Andrew Sandler of Sandler Capital Management was right behind this move, as the fund dropped about $21.7 million worth. These bearish behaviors are important to note, as total hedge fund interest was cut by 12 funds in Q1.

How are insiders trading Fortinet Inc (NASDAQ:FTNT)?

Legal insider trading, particularly when it’s bullish, is particularly usable when the primary stock in question has seen transactions within the past 180 days. Over the latest half-year time period, Fortinet Inc (NASDAQ:FTNT) has experienced zero unique insiders purchasing, and 3 insider sales (see the details of insider trades here).

We’ll also review the relationship between both of these indicators in other stocks similar to Fortinet Inc (NASDAQ:FTNT). These stocks are Msci Inc (NYSE:MSCI), MICROS Systems, Inc. (NASDAQ:MCRS), Splunk Inc (NASDAQ:SPLK), Cadence Design Systems Inc (NASDAQ:CDNS), and CommVault Systems, Inc. (NASDAQ:CVLT). This group of stocks are in the application software industry and their market caps match FTNT’s market cap.

Page 1 of 2
Comments
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months. Our beta is only 1.2 (don't click this link if beating the market isn't important to you).

Lists

The 10 Largest Pharmaceutical Companies In the World

The 10 Most Expensive Android Apps

The 9 Most Expensive Designer Bags in the World

The 7 Most Expensive Real Estate in the World

The 10 Most Expensive eBay Items Ever Sold

The 10 Most Expensive iPhone Apps

The 9 Most Expensive Designer Shoes in the World

The 10 Most Expensive Cigarette Brands

The 10 Most Expensive Law Schools in the US

The 10 Best Wall Street Movies

The 10 Most Expensive Golf Clubs Ever Sold

The 10 Most Expensive Golf Memberships

The 10 Best Disney Characters Ever Created

The 8 Best Foods for Gaining Weight

The 10 Most Expensive Colleges in the World

The 7 Most Memorable Ad Campaigns of All Time

The 7 Most Expensive High Schools in the World

The 10 Electric Vehicles with the Longest Range

The 10 Cities with the Worst Drivers in the World

The 10 Most Expensive Dresses Ever Created

10 Islands to Visit Before You Die

10 Famous Celebrities Who Needed Rehab

The 15 Countries with the Largest Oil Reserves

The 10 Most Overused Excuses in the World

The 5 Best iOS Apps You Can’t Get on Android

5 Companies Damaged By Social Media Blunders

The 10 Most Legendary Blues Songs

The 10 Most Lawless Places in the World

4 Reasons China is a Threat to the US

The 17 Most Sugary Drinks in the World

The 10 Most Ruthless Rulers in History

The 10 Greatest Generals in History

Top 8 Travel Destinations for 2015

The 10 Safest Dog Breeds for Children

The 10 Most Stolen Vehicles in the US

The 7 Most Expensive Celebrity Weddings

The 10 Best LoL Teams in the World

Top 10 Worst Marketing Campaigns Ever Produced

Top 5 Diets that Help You Lose Weight

The 10 Best Ways to Stay Awake

7 Artists That Switched Musical Genres

The 10 Most Expensive Cities to Live in New Jersey

The 10 Best High Schools in New York

The 10 Countries With the Least Gender Inequality

The 6 Biggest Musician-Manager Feuds

The 10 Countries with the Cheapest Gas Prices

The 7 Most Theatrical Bands of All Time

The 8 Worst Band Breakups of All Time

The 10 Most Important South American Leaders

The 7 Most Successful Casting Show Winners

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!