Nutanix (NASDAQ:NTNX) Shares Down 4.5% - Here's What Happened

Key Points

• Shares fell 4.5% to about $39.24 on Monday with only ~561,362 shares trading — roughly 88% below the average session volume, indicating very light trading.
• Analysts have trimmed price targets (e.g., Wells Fargo to $50, Morgan Stanley to $56, Piper Sandler to $63) but the MarketBeat consensus remains a "Moderate Buy" with an average target of $62.27.
• Nutanix beat quarterly estimates with $0.56 EPS and $722.8M revenue (+10.4% YoY), yet still reports a negative return on equity; institutional ownership is high at 85.25% amid several large recent stake increases.

Nutanix (NASDAQ:NTNX - Get Free Report)'s stock price traded down 4.5% during trading on Monday . The stock traded as low as $39.13 and last traded at $39.2360. 561,362 shares traded hands during mid-day trading, a decline of 88% from the average session volume of 4,735,185 shares. The stock had previously closed at $41.10.

Analyst Ratings Changes

A number of equities research analysts recently issued reports on the stock. Wells Fargo & Company dropped their target price on shares of Nutanix from $57.00 to $50.00 and set an "equal weight" rating for the company in a research report on Thursday, February 26th. Morgan Stanley decreased their price objective on shares of Nutanix from $62.00 to $56.00 and set an "equal weight" rating on the stock in a research note on Tuesday, February 24th. Piper Sandler cut their target price on shares of Nutanix from $72.00 to $63.00 and set an "overweight" rating for the company in a research note on Thursday, February 26th. Wall Street Zen downgraded Nutanix from a "buy" rating to a "hold" rating in a report on Tuesday, March 10th. Finally, Rosenblatt Securities initiated coverage on Nutanix in a research report on Thursday. They set a "buy" rating and a $60.00 price target on the stock. One equities research analyst has rated the stock with a Strong Buy rating, eleven have assigned a Buy rating and eight have assigned a Hold rating to the company's stock. Based on data from MarketBeat.com, Nutanix presently has a consensus rating of "Moderate Buy" and an average price target of $62.27.

Nutanix Stock Performance

The company's 50-day moving average is $39.95 and its 200-day moving average is $53.01. The firm has a market cap of $10.57 billion, a price-to-earnings ratio of 43.32, a P/E/G ratio of 4.40 and a beta of 0.52.

Nutanix (NASDAQ:NTNX - Get Free Report) last posted its quarterly earnings data on Wednesday, February 25th. The technology company reported $0.56 earnings per share for the quarter, beating the consensus estimate of $0.44 by $0.12. Nutanix had a net margin of 9.95% and a negative return on equity of 37.41%. The firm had revenue of $722.83 million during the quarter, compared to analysts' expectations of $709.83 million. During the same quarter last year, the company posted $0.47 EPS. The company's quarterly revenue was up 10.4% compared to the same quarter last year. On average, analysts predict that Nutanix will post 0.31 EPS for the current year.

Institutional Inflows and Outflows

Several large investors have recently bought and sold shares of the company. AQR Capital Management LLC lifted its stake in shares of Nutanix by 72.8% during the fourth quarter. AQR Capital Management LLC now owns 11,452,714 shares of the technology company's stock valued at $591,991,000 after acquiring an additional 4,826,443 shares during the period. Norges Bank acquired a new stake in Nutanix in the fourth quarter worth about $187,169,000. FIL Ltd increased its position in Nutanix by 180.1% in the fourth quarter. FIL Ltd now owns 4,333,937 shares of the technology company's stock worth $224,021,000 after purchasing an additional 2,786,929 shares during the period. Alyeska Investment Group L.P. raised its holdings in Nutanix by 926.8% during the 4th quarter. Alyeska Investment Group L.P. now owns 2,687,387 shares of the technology company's stock worth $138,911,000 after purchasing an additional 2,425,665 shares during the last quarter. Finally, Victory Capital Management Inc. raised its holdings in Nutanix by 592.3% during the 4th quarter. Victory Capital Management Inc. now owns 1,601,351 shares of the technology company's stock worth $82,774,000 after purchasing an additional 1,370,047 shares during the last quarter. Institutional investors and hedge funds own 85.25% of the company's stock.

About Nutanix

Nutanix, Inc is an enterprise cloud computing company that develops software to simplify the deployment and management of datacenter infrastructure. Founded in 2009 and headquartered in San Jose, California, Nutanix is best known for pioneering hyperconverged infrastructure (HCI), an approach that integrates compute, storage and virtualization into a single software-defined platform aimed at reducing complexity and operational overhead in private and hybrid cloud environments.

The company's product portfolio centers on the Nutanix Cloud Platform, which includes its core AOS software for HCI, Prism for infrastructure management and automation, and a suite of additional services such as Calm for application automation, Files and Volumes for file and block services, Karbon for Kubernetes orchestration, and Era for database management.

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