Nutanix, Inc. (NTNX) Failing To Spot These Facts

On a downside, Nutanix, Inc. (NASDAQ:NTNX) is likely to find some support, which begins at $42.24. On the upside, the stock will test short term resistance at around $45.69. The failure to get near-term support could push it to $40.04. Its 50 day simple moving average (SMA 50) price is $41.49 and its 200-day simple moving average (SMA 200) price is $49.99. The company’s stock currently has a total float of 136.74M shares. Its weekly volatility is hovering around 6.1% and felt 5.96% volatility in price over a month.

NTNX stock has been range bound between the range of $41.3 and $41.3 during the whole day. The stock finished Thursday at $44.43. The 4.22% uptrend helped its market value to reach at $7.79B. The price went up as high as $41.3 before retreating. Trading activity significantly improved as the volume at ready counter increased to 3,540,202 shares versus 2,549,850 in average daily trading volume over the past 20 days. So far this year, the volume has averaged about 3,503,851 shares. The stock is now 51.43% above against its bear-market low of $29.34 on February 06, 2018. It has retreated -46% since it’s 52-week high of $64.87 reached in June. Now the market price is up 30.29% on the year and up 25.94% YTD.

Separately, it has been reported that multiple insider activity took place at Nutanix, Inc. (NTNX). Director Mcadam John sold 15,000 shares for $62,794 in transaction occurred on 2018/12/03. After making this transaction, the Director owns a direct stake of 669,450 shares, worth $2,789,937, as per the last closing price. On 2018/12/03 Sangster David, EVP, Engineering & Operations at NTNX, dumped 7,917 shares at an average price of $44.64 per share. The selling total is valued at $.

EVP, Engineering & Operations, Sangster David had divested 7,916 shares through a trade on 2018/11/01. Following this activity, the insider holds 336,905 shares. Wall Street’s most bullish Nutanix, Inc. (NASDAQ:NTNX) analysts are predicting the share price to blow past $76 per share during the next 12 months. The current median share price forecast by them is $60, suggesting that the stock could increase 35.04% in that time frame. The average price target of $60.79 calls for a nearly 36.82% increase in the stock price.

It had seen a change in price target from analysts at Needham, who reiterated the stock at Buy on November 28 but moved PT from $71 to $76. Analysts at Susquehanna, shed their positive views on September 24 by lowering it fromNeutral to Negative. Brokerage firm Needham, looks cautious as they stick to prior recommendation of Buy, in a call on August 31. However, they did change the target price from $65 to $71.

Also, it is trading at rather expensive levels at just over 23.26x price/book and 6.53x price/sales. Compared to others, Nutanix, Inc. is in a different league with regards to profitability, having net margins of -23.1%. To put some perspective around this, the industry’s average net margin is 13.13%. NTNX’s ROE is -92.1%, which is also considerably worse than the industry’s ROE of 14.1%. It’s also very liquid in the near term, with a current ratio of 2.8. The stock has a debt/capital of 1.31.

Shares of Nutanix, Inc. (NTNX) have gained 2.2% since the company’s Jul-18 earnings report. Over the past 9 fiscal quarters, Nutanix, Inc. (NASDAQ:NTNX) has topped consensus earnings estimates in 7 quarters (77%), missed earnings in 2 quarters (22%), whereas at 0 occasion EPS met analyst expectations. NTNX last reported earnings on November 27, 2018 when it released Oct-18 results that exceeded expectations. The company raked in -$0.13 per share, -99.75% change on the same period last year. That was better than consensus for -$0.27. Revenue for the recent quarter stood at $313.28 million, up 14% on last year and above the $305.26 million predicted by analysts. For this quarter, Wall Street analysts forecast revenue in a range of $294.5 million to $302.15 million, which should be compared with $0 generated last year.