Fortinet Inc (NASDAQ:FTNT) is a good stock to own, according to comments made by Charles Payne in a segment aired by Fox Business Network.
According to Payne, another firm placed a Buy rating on Fortinet Inc (NASDAQ:FTNT) on Monday prompting attention to the company in the market. Furthermore, he explained why he thinks this stock is a good stock to invest in. He said:
“It’s a name I’ve been in with my subscribers for a long time and I have to tell you, it’s been somewhat frustrating although the stock is now near a 52-week high. I think it should be significantly higher. Execution has been fantastic, the last three quarters beating the Street. They did this by 9%, 7%, and most recently by 22%.”
The Fox Business Network host also explained what industry Fortinet Inc (NASDAQ:FTNT) is in. He also explained why he thinks the company is a good investment. He explained:
“It’s all about networks and security. The company has positioned itself to be a major player in what they call UTM. That’s Unified Threat Management: app security, cloud security, database, secure email gateway, web applications, firewalls, centralized loss reporting and device management. I told you about the first quarter. Revenues were $168 million, that was up 24%. Billing is up 26%. Cash flow [is]almost $61 million. Free cash flow [is]$50 million. These guys have almost $900 million [with]no debt and gross margins of 70%. When this thing breaks out, I think it’s going to go to $28 then $35.”
Watch the segment below.
Fortinet Inc (NASDAQ:FTNT) investors includes Lee Ainslie’s Maverick Capital which reported about 8.8 million shares in the company by the end of March this year. That stake was valued at about $193.78 million. Another Fortinet Inc (NASDAQ:FTNT) shareholder is Ricky Sandler’s Eminence Capital which reported about 3.29 million shares. That stake was valued at the time at about $72.47 million.