Nutanix (NASDAQ:NTNX) Sets New 12-Month High - What's Next?

Key Points

• Nutanix shares reached a new 52-week high of $74.55, supported by a generally positive analyst outlook. The stock has a “Moderate Buy” consensus rating and an average price target of $73.07.
• The company exceeded quarterly expectations, reporting adjusted EPS of $0.60 versus a $0.49 consensus estimate and revenue of $757.08 million. Revenue increased 15.9% year over year.
• Insiders sold approximately $32.1 million worth of shares over the past three months, including substantial sales by the CEO and CFO, while institutional investors own 85.25% of the stock.

Nutanix (NASDAQ:NTNX - Get Free Report)'s stock price reached a new 52-week high during trading on Friday. The stock traded as high as $74.55 and last traded at $74.6020, with a volume of 1310140 shares trading hands. The stock had previously closed at $73.11.

Wall Street Analysts Forecast Growth

NTNX has been the subject of several research analyst reports. Rosenblatt Securities lifted their target price on shares of Nutanix from $60.00 to $75.00 and gave the stock a "buy" rating in a report on Tuesday, August 25th. Zacks Research downgraded Nutanix from a "strong-buy" rating to a "hold" rating in a research report on Monday, August 31st. Weiss Ratings reissued a "hold (c)" rating on shares of Nutanix in a report on Monday, September 21st. Piper Sandler reaffirmed an "overweight" rating and issued a $75.00 price objective (up from $60.00) on shares of Nutanix in a report on Thursday, August 27th. Finally, Morgan Stanley lifted their target price on Nutanix from $55.00 to $63.00 and gave the stock an "equal weight" rating in a report on Thursday, August 27th. Nine equities research analysts have rated the stock with a Buy rating and nine have issued a Hold rating to the company's stock. According to MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and an average price target of $73.07.

Nutanix Stock Performance

The stock has a 50 day simple moving average of $67.40 and a 200 day simple moving average of $54.21. The company has a current ratio of 1.80, a quick ratio of 1.80 and a debt-to-equity ratio of 1.92. The stock has a market cap of $20.19 billion, a P/E ratio of 14.46, a price-to-earnings-growth ratio of 3.64 and a beta of 0.64.

Nutanix (NASDAQ:NTNX - Get Free Report) last released its earnings results on Wednesday, August 26th. The technology company reported $0.60 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.49 by $0.11. Nutanix had a negative return on equity of 90.13% and a net margin of 52.81%.The company had revenue of $757.08 million for the quarter, compared to analyst estimates of $738.27 million. During the same period in the prior year, the firm posted $0.37 EPS. Nutanix's quarterly revenue was up 15.9% on a year-over-year basis. On average, equities analysts expect that Nutanix will post 1.17 earnings per share for the current year.

Insider Activity

In other news, CFO Rukmini Sivaraman sold 38,139 shares of the business's stock in a transaction that occurred on Thursday, September 17th. The shares were sold at an average price of $70.00, for a total value of $2,669,730.00. Following the completion of the transaction, the chief financial officer directly owned 325,487 shares in the company, valued at approximately $22,784,090. The trade was a 10.49% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CEO Rajiv Ramaswami sold 324,955 shares of the company's stock in a transaction that occurred on Tuesday, October 6th. The stock was sold at an average price of $73.57, for a total transaction of $23,906,939.35. Following the sale, the chief executive officer directly owned 489,384 shares of the company's stock, valued at approximately $36,003,980.88. This trade represents a 39.90% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last three months, insiders sold 438,139 shares of company stock worth $32,129,999. Insiders own 2.40% of the company's stock.

Institutional Investors Weigh In On Nutanix

Several institutional investors and hedge funds have recently added to or reduced their stakes in NTNX. Paralel Advisors LLC grew its holdings in Nutanix by 58.6% during the 2nd quarter. Paralel Advisors LLC now owns 60,770 shares of the technology company's stock worth $3,097,000 after acquiring an additional 22,453 shares during the last quarter. Arrowstreet Capital Limited Partnership raised its stake in shares of Nutanix by 628.8% during the first quarter. Arrowstreet Capital Limited Partnership now owns 1,185,120 shares of the technology company's stock valued at $45,046,000 after acquiring an additional 1,022,516 shares during the last quarter. Public Employees Retirement System of Ohio acquired a new position in shares of Nutanix during the second quarter worth $3,976,000. WINTON GROUP Ltd lifted its holdings in shares of Nutanix by 381.3% during the second quarter. WINTON GROUP Ltd now owns 135,180 shares of the technology company's stock worth $6,889,000 after purchasing an additional 107,096 shares during the period. Finally, Entropy Technologies LP bought a new stake in shares of Nutanix in the first quarter worth $2,212,000. 85.25% of the stock is currently owned by institutional investors.

About Nutanix

Nutanix, Inc develops enterprise cloud software that helps organizations manage applications and data across on-premises infrastructure, public clouds and hybrid multicloud environments. Its platform is designed to simplify the operation of data centers and cloud resources through a unified software experience.

The company's offerings include hyperconverged infrastructure software, the Nutanix Cloud Infrastructure platform and AHV virtualization. Nutanix also provides services for file and object storage, databases, disaster recovery, Kubernetes and application management, as well as tools that help customers monitor, secure and govern their hybrid and multicloud environments.

Founded in 2009 and headquartered in San Jose, California, Nutanix serves businesses, government organizations and other institutions globally through direct sales and channel partners.

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