Nutanix (NASDAQ:NTNX) Downgraded to “Hold” Rating by Zacks Research

Zacks Research cut shares of Nutanix (NASDAQ:NTNX) from a strong-buy rating to a hold rating in a report issued on Monday,Zacks reports.

Several other equities analysts also recently weighed in on NTNX. Needham & Company LLC increased their price target on Nutanix from $60.00 to $85.00 and gave the company a “buy” rating in a report on Thursday, August 27th. UBS Group set a $85.00 price target on Nutanix in a research note on Thursday, August 27th. Keefe, Bruyette & Woods restated a “market perform” rating on shares of Nutanix in a report on Tuesday, August 25th. KeyCorp boosted their price objective on Nutanix from $65.00 to $75.00 and gave the stock an “overweight” rating in a research report on Monday, August 24th. Finally, The Goldman Sachs Group restated a “buy” rating on shares of Nutanix in a research report on Thursday, May 28th. Nine investment analysts have rated the stock with a Buy rating and nine have assigned a Hold rating to the company’s stock. Based on data from MarketBeat, Nutanix has an average rating of “Moderate Buy” and an average target price of $72.71.

Nutanix Trading Down 2.7%

Shares of NASDAQ:NTNX opened at $66.69 on Monday. The company has a quick ratio of 1.78, a current ratio of 1.80 and a debt-to-equity ratio of 1.92. The firm has a market capitalization of $18.03 billion, a P/E ratio of 12.92, a price-to-earnings-growth ratio of 3.90 and a beta of 0.62. Nutanix has a 12-month low of $34.01 and a 12-month high of $82.42. The firm has a fifty day moving average of $58.97 and a two-hundred day moving average of $48.63.

Nutanix (NASDAQ:NTNX) last announced its earnings results 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 company had revenue of $757.08 million for the quarter, compared to analysts’ expectations of $738.27 million. During the same quarter in the prior year, the business earned $0.37 earnings per share. The business’s revenue for the quarter was up 15.9% on a year-over-year basis. On average, equities analysts expect that Nutanix will post 1.02 EPS for the current fiscal year.

Institutional Inflows and Outflows

Large investors have recently made changes to their positions in the company. Katamaran Capital LLP boosted its position in Nutanix by 270.0% during the fourth quarter. Katamaran Capital LLP now owns 86,094 shares of the technology company’s stock worth $4,450,000 after purchasing an additional 62,825 shares during the period. Generali Asset Management SPA SGR purchased a new stake in shares of Nutanix in the 4th quarter valued at $1,800,000. Arrowstreet Capital Limited Partnership increased its stake in Nutanix by 628.8% in the 1st quarter. Arrowstreet Capital Limited Partnership now owns 1,185,120 shares of the technology company’s stock worth $45,046,000 after purchasing an additional 1,022,516 shares during the period. BW Gestao de Investimentos Ltda. increased its holdings in Nutanix by 19.1% during the 4th quarter. BW Gestao de Investimentos Ltda. now owns 663,074 shares of the technology company’s stock valued at $34,274,000 after purchasing an additional 106,420 shares during the period. Finally, Nomura Asset Management Co. Ltd. raised its holdings in Nutanix by 40.5% in the 4th quarter. Nomura Asset Management Co. Ltd. now owns 112,306 shares of the technology company’s stock worth $5,805,000 after purchasing an additional 32,366 shares in the last quarter. 85.25% of the stock is owned by institutional investors.

Key Headlines Impacting Nutanix

Here are the key news stories impacting Nutanix this week:

• Positive Sentiment: Nutanix highlighted capabilities that allow organizations to deploy production “agentic AI” applications on their preferred infrastructure, potentially supporting demand for its hybrid-cloud platform. Nutanix Empowers Organizations to Run Production Agentic AI Their Way
• Positive Sentiment: Northland Securities raised its Nutanix Q1 fiscal 2027 EPS forecast to $0.29 from $0.24 and projects fiscal 2028 EPS of $1.05, above the current full-year consensus of approximately $0.97. These estimates indicate expectations for continued earnings growth over the longer term.
• Neutral Sentiment: Northland maintained forecasts of $0.32 EPS for fiscal Q2 2027 and $0.18 for Q3 2027, while setting fiscal 2027 EPS at $1.01. The adjustments are mixed rather than signaling a broad change in the earnings outlook.
• Negative Sentiment: Zacks Research downgraded NTNX from “strong buy” to “hold.” The rating change may encourage profit-taking after the stock’s substantial rise above its 50-day and 200-day moving averages.
• Negative Sentiment: Northland cut its fiscal Q2 2027 EPS estimate to $0.32 from $0.35, Q3 2027 to $0.18 from $0.22, and fiscal 2027 to $1.01 from $1.03. The reductions suggest some pressure on near-term earnings expectations.
• Negative Sentiment: Broadcom is expanding VMware’s artificial-intelligence capabilities to compete more directly with Nutanix and Microsoft. A stronger VMware offering could increase competitive pressure on Nutanix’s virtualization and hybrid-cloud business. Broadcom Boosts VMware AI Push to Challenge Nutanix and Microsoft

Nutanix Company Profile

Nutanix, Inc is an enterprise cloud computing company that develops software to simplify the deployment and management of datacenter infrastructure. Founded in 2009 and headquartered in San Jose, California, Nutanix is best known for pioneering hyperconverged infrastructure (HCI), an approach that integrates compute, storage and virtualization into a single software-defined platform aimed at reducing complexity and operational overhead in private and hybrid cloud environments.

The company’s product portfolio centers on the Nutanix Cloud Platform, which includes its core AOS software for HCI, Prism for infrastructure management and automation, and a suite of additional services such as Calm for application automation, Files and Volumes for file and block services, Karbon for Kubernetes orchestration, and Era for database management.