Fortinet (FTNT) has disclosed a new risk, in the Regulation category.
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In May 2024, Fortinet’s COO, John Whittle, established a Rule 10b5-1 trading plan, potentially involving the sale of up to 141,820 shares of company stock. This plan, often used by insiders to sell shares within regulatory compliance, raises concerns about possible market perception and the timing of the sales. While Whittle has declared no possession of material nonpublic information at the plan’s inception, the absence of assurances regarding future knowledge could pose a reputational risk to Fortinet. Furthermore, the company’s commitment to transparency through SEC filings does not alleviate the inherent risk of insider trading perceptions that could affect the stock’s performance and investor confidence.
The average FTNT stock price target is $73.88, implying -4.73% downside potential.
To learn more about Fortinet’s risk factors, click here.
