Take off with Nutanix Inc. (NTNX): Get ready for trading

Nutanix Inc. (NASDAQ: NTNX) stock jumped 1.40% on Tuesday to $28.95 against a previous-day closing price of $28.55. With 1.39 million shares changed hands, the volume of the stock remained lighter than its average volume of 2.23 million shares. During the session, the Software – Infrastructure company that operates in wider Technology sector, reached to the highest price of $29.04 whereas the lowest price it dropped to was $28.18. The 52-week range on NTNX shows that it touched its highest point at $33.73 and its lowest point at $13.44 during that stretch. It currently has a 1-year price target of $32.86. Beta for the stock currently stands at 1.26.

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Price Performance and Earnings:

Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of NTNX was up-trending over the past week, with a rise of 8.75%, but this was up by 0.17% over a month. Three-month performance surged to 7.74% while six-month performance rose 96.27%. The stock gained 8.75% in the past year, while it has gained 11.13% so far this year. A look at the trailing 12-month EPS for NTNX yields -2.13 with Next year EPS estimates of 0.51. For the next quarter, that number is 0.11. This implies an EPS growth rate of 27.80% for this year and 149.27% for next year.

Float and Shares Shorts:

At present, 228.54 million NTNX shares are outstanding with a float of 225.29 million shares on hand for trading. On Dec 29, 2022, short shares totaled 7.28 million, which was 3.16% higher than short shares on Nov 29, 2022. In addition to Dr. Rajiv Ramaswami Ph.D. as the firm’s Pres, CEO & Director, Ms. Rukmini Sivaraman serves as its Principal Accounting Officer & CFO.

Institutional Ownership:

Through their ownership of 78.33% of NTNX’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 9.49% of NTNX, in contrast to 39.26% held by mutual funds. Shares owned by individuals account for 38.33%. As the largest shareholder in NTNX with 14.80% of the stake, Fidelity Management & Research Co holds 34,054,812 shares worth 34,054,812. A second-largest stockholder of NTNX, The Vanguard Group, Inc., holds 25,210,839 shares, controlling over 10.96% of the firm’s shares. Generation Investment Management is the third largest shareholder in NTNX, holding 21,061,059 shares or 9.15% stake. With a 5.17% stake in NTNX, the Fidelity Growth Company Fund is the largest stakeholder. A total of 11,904,246 shares are owned by the mutual fund manager. The Vanguard Total Stock Market Index, which owns about 3.04% of NTNX stock, is the second-largest Mutual Fund holder. It holds 6,990,900 shares valued at 182.11 million. Vanguard Small Cap Index Fund holds 2.58% of the stake in NTNX, owning 5,928,514 shares worth 154.44 million.

An Overview of Recent Financials:

Understanding a company as a customer does not mean you will understand it as an investor. The wise investor uses quantitative research to analyze metrics such as revenue, net income, and earnings. In its fiscal quarter reported on Oct 30, 2022, NTNX reported revenue of $403.66M and operating income of -$92.35M. The EBITDA in the recently reported quarter was -$71.16M and diluted EPS was -$0.50.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for NTNX since 17 analysts follow the stock currently. There are 9 analysts who recommend BUY ratings, while 0 suggest SELL ratings. Of the remaining analysts, 7 believe that the stock is worth HOLDING, 1 give it an OVERWEIGHT rating, and 0 thinks that it’s UNDERWEIGHT. In the same way, a target price assigned to a stock can also reveal much about its potential. With NTNX analysts setting a high price target of $35.00 and a low target of $30.00, the average target price over the next 12 months is $33.08. Based on these targets, NTNX could surge 20.9% to reach the target high and rise by 3.63% to reach the target low. Reaching the average price target will result in a growth of 14.27% from current levels.

EPS: Estimates vs Actual

It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy. NTNX will report FY 2023 earnings on 08/31/2023. Analysts have provided yearly estimates in a range of $0.44 being high and $0.08 being low. For NTNX, this leads to a yearly average estimate of $0.20. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. Nutanix Inc. surprised analysts by $0.15 when it reported $0.03 EPS against a consensus estimate of -$0.12. The surprise factor in the prior quarter was $0.21. Based on analyst estimates, the high estimate for the next quarter is $0.15 and the low estimate is $0.08. The average estimate for the next quarter is thus $0.11.

Summary of Insider Activity:

Insiders traded NTNX stock several times over the past three months with 25 Buys and 10 Sells. In these transactions, 255,525 shares were bought while 324,686 shares were sold. The number of buy transactions has increased to 79 while that of sell transactions has risen to 27 over the past year. The total number of shares bought during that period was 822,352 while 605,386 shares were sold.

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