Nutanix (NASDAQ:NTNX) Shares Gap Down After Analyst Downgrade

Key Points

• Nutanix shares gapped down to $63.87 after Barclays downgraded their price target from $94 to $82, reflecting a negative outlook despite maintaining an overweight rating.
• Several analysts have issued mixed ratings, with Needham reducing their price target to $80 while Piper Sandler raised theirs to $88, indicating some variability in market sentiment.
• Insider activity saw CFO Rukmini Sivaraman sell 2,100 shares and Director Groen Max Pieter De sell over 5.4 million shares, significantly decreasing their ownership stakes in the company.

Shares of Nutanix (NASDAQ:NTNX - Get Free Report) gapped down prior to trading on Thursday after Barclays lowered their price target on the stock from $94.00 to $82.00. The stock had previously closed at $69.60, but opened at $63.87. Barclays currently has an overweight rating on the stock. Nutanix shares last traded at $64.36, with a volume of 2,894,986 shares changing hands.

NTNX has been the subject of several other reports. Needham & Company LLC decreased their price target on shares of Nutanix from $92.00 to $80.00 and set a "buy" rating for the company in a research note on Thursday. Wall Street Zen downgraded shares of Nutanix from a "strong-buy" rating to a "buy" rating in a research note on Monday, June 30th. Piper Sandler reaffirmed an "overweight" rating and issued a $88.00 price target (up from $76.00) on shares of Nutanix in a research note on Thursday, May 29th. Citigroup raised shares of Nutanix to a "positive" rating in a research report on Tuesday, August 5th. Finally, Raymond James Financial downgraded shares of Nutanix from an "outperform" rating to a "market perform" rating in a research report on Tuesday, May 20th. One investment analyst has rated the stock with a Strong Buy rating, fourteen have issued a Buy rating and two have given a Hold rating to the stock. Based on data from MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and a consensus price target of $88.47.

Insider Activity

In other Nutanix news, CFO Rukmini Sivaraman sold 2,100 shares of the business's stock in a transaction dated Monday, June 16th. The shares were sold at an average price of $72.73, for a total value of $152,733.00. Following the transaction, the chief financial officer directly owned 209,070 shares in the company, valued at $15,205,661.10. The trade was a 0.99% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, Director Groen Max Pieter De sold 5,480,467 shares of the business's stock in a transaction dated Thursday, June 5th. The shares were sold at an average price of $76.81, for a total transaction of $420,954,670.27. Following the completion of the transaction, the director owned 5,480,468 shares in the company, valued at approximately $420,954,747.08. The trade was a 50.00% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold a total of 5,491,492 shares of company stock valued at $421,797,778 in the last three months. 6.80% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Colonial Trust Co SC purchased a new position in Nutanix in the fourth quarter valued at about $28,000. Twin Tree Management LP purchased a new position in Nutanix in the first quarter valued at about $29,000. MassMutual Private Wealth & Trust FSB boosted its stake in Nutanix by 78.0% in the first quarter. MassMutual Private Wealth & Trust FSB now owns 436 shares of the technology company's stock valued at $30,000 after acquiring an additional 191 shares during the last quarter. GW&K Investment Management LLC purchased a new position in Nutanix in the first quarter valued at about $30,000. Finally, SouthState Corp purchased a new position in Nutanix in the first quarter valued at about $32,000. 85.25% of the stock is currently owned by hedge funds and other institutional investors.

Nutanix Price Performance

The stock has a market capitalization of $17.33 billion, a PE ratio of 138.74, a PEG ratio of 4.54 and a beta of 0.71. The stock's 50 day simple moving average is $73.07 and its two-hundred day simple moving average is $71.95.

Nutanix (NASDAQ:NTNX - Get Free Report) last announced its quarterly earnings results on Wednesday, August 27th. The technology company reported $0.37 EPS for the quarter, beating analysts' consensus estimates of $0.31 by $0.06. The company had revenue of $653.27 million for the quarter, compared to analysts' expectations of $642.48 million. Nutanix had a net margin of 0.97% and a negative return on equity of 21.32%. Nutanix's revenue was up 19.2% compared to the same quarter last year. During the same period in the prior year, the company posted $0.27 EPS. Nutanix has set its Q1 2026 guidance at EPS. FY 2026 guidance at EPS. As a group, equities research analysts predict that Nutanix will post 0.31 earnings per share for the current fiscal year.

About Nutanix

Nutanix, Inc engages in the provision of a cloud platform leveraging web-scale engineering and consumer-grade design. It operates through the following geographic segments: United States, Europe, the Middle East, Africa, Asia Pacific, and Other Americas. The firm also provides software solutions and cloud services to customers' enterprise infrastructure.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest and most accurate reporting. This story was reviewed by MarketBeat's editorial team prior to publication. Please send any questions or comments about this story to contact@marketbeat.com.