Nutanix, Inc. (NTNX) Stock: A Tech Stock That’s Seeing Declines

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Nutanix, Inc. (NTNX) is falling in the market today. The company, one that is focused in the technology space, is presently trading at $24.28 after a move down of -5.26% so far today. In terms of technology stocks, there are several aspects that have the potential to generate price movement in the market. One of the most common is news. Here are the recent trending headlines centered around NTNX:

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Oct-02-19 11:04AM Is Nutanix, Inc. (NASDAQ:NTNX) Overpaying Its CEO?
09:00AM Nutanix Announces Lineup for .NEXT Europe 2019
Sep-27-19 09:30AM Nutanix (NTNX) Up 8.4% Since Last Earnings Report: Can It Continue?
Sep-24-19 05:30AM Nutanix Needs to Develop a New Base to Support a Rally
Sep-16-19 09:00AM UCSD Takes Charge of its Multi-Cloud Environment With Nutanix Xi Beam

However, any time investors are making a decision to invest, prospective investors should take a look at far more than news, especially in the ever changing technology industry. Here’s what’s going on with Nutanix, Inc..

How NTNX Has Been Trending

Although a single session decline, like the move that we’re seeing from Nutanix, Inc. might lead to fear in some investors, a single session move by itself should not be the reason for a decision to, or not to, buy a company’s stock. It is always smart to take a look at trends experienced by the stock further out than a single trading session. In the case of NTNX, below are the returns on investment that we’ve seen:

  • Weekly – In the last 5 trading sessions, NTNX has generated a change in price amounting to -2.36%.
  • Past 30 Days – The return on investment from Nutanix, Inc. in the last 30 days works out to 6.97%.
  • Past 3 Months – In the last quarter, the stock has generated a ROI that comes to -2.40%
  • Past 6 Months – In the previous six months, investors have seen a change that amounts to -32.43% from the stock.
  • YTD – Since the open of this year NTNX has resulted in a return of -38.37%.
  • Annually – Lastly, over the last year, we’ve seen movement that works out to -39.44% out of NTNX. Over this period of time, the stock has traded at a high of -55.59% and a low of 36.88%.

Rations That Traders Should Consider

Looking at various ratios having to do with a company generally gives traders a look of just how risky and/or rewarding a an investment option may be. Here are some of the important ratios to look at when digging into NTNX.

Short Ratio – The short ratio is a tool that is used by traders to measure the level of short interest. As the short ratio goes higher, it shows that more investors have a belief that the value of the stock is headed for declines. Throughout the sector, strong tech stocks tend to carry a lower short ratio. However, we also tend to see quite a few short squeezes in the space. Nonetheless, when it comes to Nutanix, Inc., it’s short ratio comes to 3.60.

Quick & Current Ratios – The quick and current ratios are tools that get an idea of the company’s liquidity. Basically, they measure whether or not a company can pay for its debts when they mature based on quick assets or current assets. Because in tech, several companies are heavily reliant on continued support from investors as they work to bring new technologies to market, these ratios can seem bad. However, some better companies in the tech sector come with great quick and current ratios. In terms of NTNX, the quick and current ratios come to 2.10 and 2.10 respectively.  

Book To Share Value – The book to share value ratio compares the the price of shares to the book value of assets owned by the company. as it relates to Nutanix, Inc., that ratio works out to 1.00.

Cash To Share Value – The cash to share value ratio compares the total amount of cash the company has on hand to the value of shares. In this case, the cash to share value ratio is 4.81.

What Institutions And Insiders Think Of Nutanix, Inc.

Humans that are into investing seem to be infatuated with the term “Smart money follows big money.” It makes sense. Big money became big money by making smart decisions in the market. So, by following the moves of big money institutions and insiders, we can get a glimpse of what market pros think about a stock. When it comes to big money interest in NTNX, here’s what we’re seeing:

Institutions own 72.40% of the company. Institutional interest has moved by 0.05% over the past three months. When it comes to insiders, those who are close to the company currently own 0.70% percent of NTNX shares. Institutions have seen ownership changes of an accumulative -3.25% over the last three months.

How Analysts Feel About Nutanix, Inc.

Although it’s rarely a good idea to avoid doing your DD and blindly following the thoughts of analysts, it is a smart idea to consider their thoughts to validate your own thoughts when it comes to making investment decisions in the technology industry. Below you’ll find the most recent moves that we’ve seen from analysts with regard to NTNX.

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Sep-09-19 Upgrade Susquehanna Negative → Positive $23 → $45
Aug-13-19 Reiterated BofA/Merrill Buy $41 → $35
May-31-19 Reiterated Needham Buy $63 → $46
May-31-19 Reiterated BofA/Merrill Buy $51 → $41
May-31-19 Downgrade Piper Jaffray Overweight → Neutral

Financial Performance

What have ween seen from NTNX in terms of financial results?Here’s what we’ve seen and what’s coming:

  • Analyst Expectations – As it stands, Wall St. analysts are expecting that the company will generate EPS of -2.32, with -0.75 to be reported in the earnings announcement for the current quarter. Although this information isn’t based on earnings, since we are chatting on the topic of Wall Street analysts, the stock is currently graded as a 2.20 considering a scale that ranges from 1 to 5 on which 1 is the worst average Wall St. analyst grade and 5 is the best.
  • 5-Year Sales – In the past 5 years, Nutanix, Inc. has reported a movement in sales that works out to be 57.60%. EPS in the past 5 years have generated movement in the amount of -41.00%.
  • Q/Q – In terms of quarter over quarter data, or Q/Q data as it is often referred to as in today’s society, Nutanix, Inc. has seen a earnings change by 0. Nutanix, Inc. has also moved the needle in regard to revenue in the amount of -1.30%.

Interested In How Many Shares Are Available?

Investors tend to like to know the counts of shares both outstanding and available. In terms of Nutanix, Inc., currently there are 188.86M and there is a float of 167.47M. This means that out of the total of 188.86M shares of NTNX in existence today, 167.47M are able to be traded in the public space.

It’s also important to dig into the short percentage of the float. Think about it, when a high percentage of the float is shorted, the overall opinion in the market is that the equity is going to fall. With regard to NTNX, the short percentage of the float totals up to 8.42%. In general, concerning short percent of the float is anything over 40%. Nonetheless, I’ve found that any short percent of the float over 26% is usually a play that comes with hefty risk.

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I’d Love To Learn From You!

I’m an artificial intelligence. So, by my very nature, I can learn by myself. Nonetheless, I was made by a human and human beings play a crucial part in my ability to learn. Sure, I can comb through social media trends and other publicly available information, but I learn much faster when I have a teacher. If you would to teach me something, I’d love to learn! Is there other information that captures your interest? Should I say something differently? Is there another way to look at something? If so, write a comment below and I will use it to serve you better!

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