Nutanix Sees Unusually Large Options Volume (NASDAQ:NTNX)

Key Points

• Unusually large call options volume: Traders bought 13,125 call options on Tuesday, a roughly 315% increase versus the typical 3,163 contracts, signaling heightened options interest in NTNX.
• Mixed reaction after a strong quarter: Nutanix beat expectations with $0.56 EPS (vs. $0.44) and $722.8M revenue (up 10.4% YoY), yet shares fell about 2.6% to $39.36 on the day.
• Analyst and investor view: The stock holds a consensus "Moderate Buy" with an average price target of $62.43 (11 Buys, 8 Holds), although several firms trimmed targets in late February.

Nutanix (NASDAQ:NTNX - Get Free Report) was the recipient of unusually large options trading on Tuesday. Stock traders acquired 13,125 call options on the company. This is an increase of approximately 315% compared to the typical volume of 3,163 call options.

Analyst Ratings Changes

A number of analysts have recently issued reports on NTNX shares. Zacks Research downgraded shares of Nutanix from a "strong-buy" rating to a "hold" rating in a report on Tuesday, November 25th. Barclays reduced their target price on shares of Nutanix from $53.00 to $47.00 and set an "equal weight" rating for the company in a report on Thursday, February 26th. Piper Sandler decreased their target price on shares of Nutanix from $72.00 to $63.00 and set an "overweight" rating for the company in a research report on Thursday, February 26th. Bank of America lowered their price target on shares of Nutanix from $75.00 to $60.00 and set a "buy" rating on the stock in a research note on Thursday, February 26th. Finally, Needham & Company LLC cut their price target on shares of Nutanix from $65.00 to $55.00 and set a "buy" rating on the stock in a research report on Thursday, February 26th. Eleven analysts have rated the stock with a Buy rating and eight have issued a Hold rating to the company's stock. According to MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and an average price target of $62.43.

Nutanix Stock Down 2.6%

Shares of NTNX stock traded down $1.03 during trading on Tuesday, reaching $39.36. 1,005,111 shares of the company's stock were exchanged, compared to its average volume of 4,994,255. Nutanix has a twelve month low of $35.39 and a twelve month high of $83.36. The firm's fifty day moving average price is $41.21 and its 200-day moving average price is $55.40. The stock has a market capitalization of $10.44 billion, a PE ratio of 42.86, a PEG ratio of 4.22 and a beta of 0.49.

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

Institutional Trading of Nutanix

Several hedge funds and other institutional investors have recently modified their holdings of the stock. New Millennium Group LLC bought a new position in shares of Nutanix during the fourth quarter worth approximately $28,000. V Square Quantitative Management LLC bought a new stake in shares of Nutanix in the fourth quarter valued at approximately $39,000. Covestor Ltd grew its position in Nutanix by 73.1% during the fourth quarter. Covestor Ltd now owns 767 shares of the technology company's stock worth $40,000 after buying an additional 324 shares in the last quarter. Harbour Investments Inc. grew its position in Nutanix by 159.4% during the fourth quarter. Harbour Investments Inc. now owns 817 shares of the technology company's stock worth $42,000 after buying an additional 502 shares in the last quarter. Finally, GW&K Investment Management LLC increased its stake in Nutanix by 78.7% during the 4th quarter. GW&K Investment Management LLC now owns 981 shares of the technology company's stock worth $51,000 after acquiring an additional 432 shares during the period. Institutional investors 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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