Reassessing The Changing Outlook For Nutanix Inc. (NTNX)


    Fidelity Management & Research Co.. recently announced the acquisition of new stake in Nutanix Inc. (NASDAQ:NTNX). The institutional investor has increased its shareholding in the Technology company by 2.81% to 27.6 million shares with purchase of 0.75 million shares. This fresh investment now brings its stake to 14.96% valued currently at $612.44 million. In addition, The Vanguard Group, Inc. raised its holdings by 0.46 million to 16.1 million shares. And Generation Investment Management.. has lifted its position by 10.09% or 1.41 million shares – to 15.43 million shares.

    With over 67.89 million Nutanix Inc. (NTNX) shares trading Friday and a closing price of $28.03 on the day, the dollar volume was approximately $1.9 billion. The shares have shown a positive weekly performance of 33.60% and its price on 08/28/20 gained nearly 29.17%. Currently, there are 196.37M common shares owned by the public and among those 166.91M shares have been available to trade.

    An analysis of what Wall Street brokers have to say about the expected price targets for this stock gives us this picture: 18 analysts who have offered their price forecasts for NTNX have a consensus price objective of $27.93. The analysts have set the share’s price value over the next 12 months at a high of $45.00 and a low of $16.00 should the stock experience a downside. Incidentally, analysts’ outlook for the Nutanix Inc. stock is 2.50 for the next 12 months. The average price target is 2.37% above its last price level and an upside to the estimated low will see the stock lose -75.19% over that period. But an upside of 37.71% will see the stock hit the forecast high price target while mean target price for the stock is $28.00.

    Insiders at the company have transacted a total of 81 times over the past 12 months, according to data filed with the U.S. Securities and Exchange Commission (SEC). 59 of these insider trades were purchases, accounting for 566,709 shares. Insider sales of the common stock occurred on 22 occasions, with total insider shares sold totaling 435,149 shares.

    The top 3 mutual fund holders in Nutanix Inc. are Fidelity Growth Company Fund, Vanguard Total Stock Market Index, and ClearBridge Large Cap Growth Fund. Fidelity Growth Company Fund owns 12.15 million shares of the company’s stock, all valued at over $269.54 million. The company bought an additional 0.3 million shares recently to bring their total holdings to about 6.59% of the shares outstanding. Vanguard Total Stock Market Index sold 2300.0 shares to see its total holdings shrink to 5.15 million shares valued at over $114.19 million and representing 2.79% of the shares outstanding. ClearBridge Large Cap Growth Fund sold 18047.0 shares to bring its total holdings to over 4.71 million shares at a value of $104.6 million. ClearBridge Large Cap Growth Fund now owns shares totaling to 2.56% of the shares outstanding.

    Shares of Nutanix Inc. (NASDAQ: NTNX) opened at $23.79, up $2.09 from a prior closing price of $21.70. However, the script later closed the day at $28.03, up 29.17%. The company’s stock has a 5-day price change of 33.60% and 16.67% over the past three months. NTNX shares are trading -10.33% year to date (YTD), with the 12-month market performance up to 16.74% higher. It has a 12-month low price of $11.31 and touched a high of $37.86 over the same period. Currently, 67.89 million shares have been traded, compared to an average intraday trading volume of 2.81 million shares. The stock is trading above its simple moving averages at the SMA20, SMA50, and SMA200, as the current price level is off by 27.69%, 25.82%, and 11.25% respectively.

    Institutional ownership of Nutanix Inc. (NASDAQ: NTNX) shares accounts for 76.00% of the company’s 196.37M shares outstanding. Mutual fund holders own 35.73%, while other institutional holders and individual stakeholders account for 39.75% and 10.92% respectively.

    It has a market capitalization of $4.33B and a beta (3y monthly) value of 1.82. The earnings-per-share (ttm) stands at -$4.49. Price movements for the stock have been influenced by the stock’s volatility, which stands at 7.46% over the week and 4.65% over the month.

    Analysts forecast that Nutanix Inc. (NTNX) will achieve an EPS of -$0.57 for the current quarter, -$0.51 for the next quarter and -$1.81 for 2022. The lowest estimate earnings-per-share for the quarter is -$0.71 while analysts give the company a high EPS estimate of -$0.42. Comparatively, EPS for the current quarter was -$0.71 a year ago. Earnings per share for the fiscal year are expected to decrease by -176.30%, and 18.30% over the next financial year.

    If you are looking to buy this stock, then you may note that the average analyst recommendation by 18 brokerage firm advisors rate Nutanix Inc. (NTNX) as a “Moderate Buy” at a consensus score of 2.50. Specifically, 8 Wall Street analysts polled rate the stock as a buy, while 8 of the 18 advise that investors “hold,” and 2 rated it as a “Sell.”

    Looking at the support for the NTNX, a number of firms have released research notes about the stock. Robert W. Baird stated their Neutral rating for the stock in a research note on August 28, 2020, with the firm’s price target at $25. Northland Capital coverage for the Nutanix Inc. (NTNX) stock in a research note released on August 10, 2020 offered a Outperform rating with a price target of $31. Wells Fargo was of a view on May 28, 2020 that the stock is Equal Weight, while RBC Capital Mkts gave the stock Outperform rating on May 28, 2020, issuing a price target of $23- $27. Piper Sandler on their part issued Neutral rating on May 28, 2020.


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