1832 Asset Management Cuts Nutanix Stake by Nearly 90%

1832 Asset Management L.P. significantly reduced its investment in Nutanix, a cloud computing company, lowering its stake by 89.8% in the second quarter of 2023. According to the firm’s latest Form 13F filing with the U.S. Securities and Exchange Commission (SEC), the institutional investor now owns 28,282 shares after selling 248,318 shares during the reporting period. The remaining shares are valued at approximately $2.16 million.

Other institutional investors have also made notable adjustments to their positions in Nutanix. Twin Tree Management LP entered a new investment in the company during the first quarter, valued at $29,000. Similarly, SouthState Corp acquired shares worth about $32,000, while Farther Finance Advisors LLC increased its holdings by 42.6% in the second quarter, bringing its total to 502 shares valued at $38,000.

Analysts Adjust Ratings and Price Targets

Wall Street analysts have recently provided updates regarding Nutanix’s stock performance. Bank of America cut its price target from $93.00 to $75.00 while maintaining a “buy” rating. Piper Sandler also revised its outlook, reissuing an “overweight” rating with a new price objective of $72.00, down from $88.00.

Other analysts, including those from Barclays and KeyCorp, have similarly adjusted their ratings and targets. Barclays restated an “overweight” rating with a target price of $64.00, while KeyCorp lowered its target from $95.00 to $65.00. Zacks Research downgraded the stock from a “strong-buy” rating to “hold.” Currently, thirteen research analysts have rated Nutanix with a buy rating, while six have issued hold ratings. The stock has a consensus rating of “Moderate Buy” and a price target of $75.13, according to data from MarketBeat.

Insider Transactions and Stock Performance

Recent insider activity has also drawn attention. Teresa Gayle Sheppard, a director at Nutanix, sold 3,500 shares on October 2 at an average price of $76.48, totaling $267,680. Following this transaction, she holds 22,400 shares valued at approximately $1.71 million, marking a 13.51% decrease in her ownership.

Similarly, Rukmini Sivaraman, the Chief Financial Officer, sold 11,391 shares on September 16 for an average price of $78.34, amounting to about $892,371. Post-transaction, Sivaraman holds 254,637 shares valued at nearly $19.95 million, reflecting a 4.28% decrease in ownership. Over the last 90 days, company insiders have sold a total of 159,598 shares worth $12.22 million, with insiders maintaining 2.40% of the company’s stock.

Nutanix shares opened at $47.32 on Friday. The company has a fifty-day moving average price of $65.15 and a two-hundred-day moving average price of $70.96. Over the past year, the stock has hit a low of $46.12 and a high of $83.36, with a market capitalization of $12.72 billion. The company boasts a P/E ratio of 63.09 and a P/E/G ratio of 5.03.

Nutanix reported its earnings results on November 25, revealing earnings per share of $0.41, aligning with analysts’ expectations. The company achieved a net margin of 8.43% and a negative return on equity of 32.17%. Revenue for the quarter was $670.58 million, slightly below the anticipated $677.23 million, but up 13.5% from the same period last year. Analysts expect Nutanix to post earnings per share of $0.31 for the current fiscal year.

Nutanix, Inc. specializes in providing a cloud platform that integrates web-scale engineering and consumer-grade design. The company operates across various regions, including the United States, Europe, the Middle East, Africa, and Asia Pacific, offering software solutions and cloud services for enterprise infrastructure.