Nutanix (NASDAQ:NTNX) Shares Cross Below Fifty Day Moving Average - Here's Why

Key Points

• Nutanix shares fell below their 50-day moving average of $69.51, trading as low as $66.05 and last changing hands at $67.21.
• Analyst sentiment remains generally positive, with a consensus “Moderate Buy” rating and an average price target of $74.87, despite Zacks Research downgrading the stock to “Hold.”
• Nutanix exceeded quarterly expectations, reporting $0.60 in earnings per share and $757.08 million in revenue, up 15.9% year over year; however, insiders sold roughly $49.7 million of shares during the quarter.

Nutanix (NASDAQ:NTNX - Get Free Report)'s stock price crossed below its 50 day moving average during trading on Friday. The stock has a 50 day moving average of $69.51 and traded as low as $66.05. Nutanix shares last traded at $67.21, with a volume of 2,116,008 shares traded.

Wall Street Analyst Weigh In

Several analysts have recently commented on the stock. Piper Sandler reiterated an "overweight" rating and issued a $75.00 target price (up from $60.00) on shares of Nutanix in a report on Thursday, August 27th. UBS Group set a $85.00 price objective on Nutanix in a report on Thursday, August 27th. Zacks Research cut shares of Nutanix from a "strong-buy" rating to a "hold" rating in a report on Monday, August 31st. Oppenheimer upped their price target on Nutanix from $80.00 to $85.00 and gave the company an "outperform" rating in a research report on Thursday, August 27th. Finally, Royal Bank Of Canada increased their price objective on Nutanix from $84.00 to $90.00 and gave the stock an "outperform" rating in a research report on Thursday, August 27th. Ten research analysts have rated the stock with a Buy rating and nine have given a Hold rating to the company's stock. According to data from MarketBeat, the company currently has a consensus rating of "Moderate Buy" and a consensus target price of $74.87.

Nutanix Stock Performance

The company's fifty day moving average is $69.51 and its 200 day moving average is $52.53. The company has a market cap of $18.19 billion, a P/E ratio of 13.03, a price-to-earnings-growth ratio of 3.51 and a beta of 0.64. The company has a current ratio of 1.80, a quick ratio of 1.80 and a debt-to-equity ratio of 1.92.

Nutanix (NASDAQ:NTNX - Get Free Report) last released its quarterly earnings data on Wednesday, August 26th. The technology company reported $0.60 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 firm had revenue of $757.08 million for the quarter, compared to the consensus estimate of $738.27 million. During the same quarter in the previous year, the business earned $0.37 earnings per share. The company's quarterly revenue was up 15.9% on a year-over-year basis. As a group, equities analysts predict that Nutanix will post 1.17 earnings per share for the current fiscal year.

Insider Buying and Selling at Nutanix

In other news, Director Teresa Sheppard sold 3,500 shares of the company's stock in a transaction dated Friday, October 9th. The shares were sold at an average price of $73.67, for a total transaction of $257,845.00. Following the completion of the transaction, the director directly owned 23,488 shares of the company's stock, valued at approximately $1,730,360.96. This represents a 12.97% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Also, CEO Rajiv Ramaswami sold 324,955 shares of the company's stock in a transaction that occurred on Tuesday, October 6th. The shares were sold at an average price of $73.57, for a total value of $23,906,939.35. Following the transaction, the chief executive officer directly owned 489,384 shares of the company's stock, valued at $36,003,980.88. The trade was a 39.90% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last quarter, insiders have sold 674,351 shares of company stock worth $49,736,524. 2.30% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Nutanix

A number of large investors have recently modified their holdings of the stock. CX Institutional grew its stake in shares of Nutanix by 134.6% in the 2nd quarter. CX Institutional now owns 488 shares of the technology company's stock worth $25,000 after buying an additional 280 shares during the last quarter. Western Wealth Management LLC purchased a new position in Nutanix in the 1st quarter worth about $27,000. Parkside Financial Bank & Trust raised its holdings in shares of Nutanix by 43.8% during the second quarter. Parkside Financial Bank & Trust now owns 578 shares of the technology company's stock valued at $29,000 after purchasing an additional 176 shares during the last quarter. Frazier Financial Advisors LLC lifted its holdings in shares of Nutanix by 1,063.8% during the 1st quarter. Frazier Financial Advisors LLC now owns 1,094 shares of the technology company's stock valued at $42,000 after buying an additional 1,000 shares during the period. Finally, CoreCap Advisors LLC grew its holdings in shares of Nutanix by 28.6% in the second quarter. CoreCap Advisors LLC now owns 900 shares of the technology company's stock worth $46,000 after acquiring an additional 200 shares during the period. Institutional investors own 85.25% of the company's stock.

Nutanix Company Profile

Nutanix, Inc is a cloud computing and enterprise software company that provides infrastructure and platform services for running applications across private, hybrid and multicloud environments. Its products are designed to simplify the management of data centers and cloud resources by combining computing, storage, virtualization, networking and data services within a unified software platform.

The company's offerings include the Nutanix Cloud Platform, which supports enterprise applications and workloads across on-premises infrastructure and public clouds.

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