Zacks Research Downgrades Nutanix (NASDAQ:NTNX) to Hold

Nutanix (NASDAQ:NTNX) was downgraded by research analysts at Zacks Research from a “strong-buy” rating to a “hold” rating in a note issued to investors on Monday, Zacks reports.

NTNX has been the topic of a number of other reports. Rosenblatt Securities raised their price objective on shares of Nutanix from $60.00 to $75.00 and gave the company a “buy” rating in a research note on Tuesday, August 25th. Keefe, Bruyette & Woods reissued a “market perform” rating on shares of Nutanix in a research note on Tuesday, August 25th. JPMorgan Chase & Co. increased their price target on Nutanix from $44.00 to $50.00 and gave the company a “neutral” rating in a research note on Thursday, May 28th. KeyCorp raised their price target on Nutanix from $65.00 to $75.00 and gave the stock an “overweight” rating in a research report on Monday, August 24th. Finally, Weiss Ratings reaffirmed a “hold (c)” rating on shares of Nutanix in a research note on Wednesday, June 24th. Nine research analysts have rated the stock with a Buy rating and nine have given a Hold rating to the company’s stock. According to data from MarketBeat, Nutanix currently has a consensus rating of “Moderate Buy” and an average price target of $72.71.

Nutanix Stock Performance

Nutanix stock opened at $66.69 on Monday. The company has a market cap of $18.03 billion, a PE ratio of 12.92, a PEG ratio of 3.90 and a beta of 0.62. The company has a current ratio of 1.80, a quick ratio of 1.78 and a debt-to-equity ratio of 1.92. Nutanix has a 1 year low of $34.01 and a 1 year high of $82.42. The company’s 50-day moving average is $58.97 and its two-hundred day moving average is $48.63.

Nutanix (NASDAQ:NTNX) last issued its quarterly 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. The company had revenue of $757.08 million during the quarter, compared to analysts’ expectations of $738.27 million. Nutanix had a net margin of 52.81% and a negative return on equity of 90.13%. Nutanix’s revenue was up 15.9% on a year-over-year basis. During the same quarter in the previous year, the company earned $0.37 EPS. Equities analysts anticipate that Nutanix will post 1.02 earnings per share for the current year.

Institutional Inflows and Outflows

Institutional investors have recently bought and sold shares of the company. CW Advisors LLC bought a new stake in Nutanix in the second quarter valued at approximately $273,000. Cerity Partners LLC raised its holdings in Nutanix by 15.2% in the second quarter. Cerity Partners LLC now owns 83,073 shares of the technology company’s stock worth $6,350,000 after purchasing an additional 10,967 shares during the period. Bank of Nova Scotia raised its holdings in Nutanix by 296.5% in the second quarter. Bank of Nova Scotia now owns 41,616 shares of the technology company’s stock worth $3,181,000 after purchasing an additional 31,119 shares during the period. Daiwa Securities Group Inc. boosted its position in shares of Nutanix by 94.7% during the second quarter. Daiwa Securities Group Inc. now owns 48,263 shares of the technology company’s stock worth $3,690,000 after purchasing an additional 23,479 shares in the last quarter. Finally, NewEdge Advisors LLC boosted its position in shares of Nutanix by 164.4% during the second quarter. NewEdge Advisors LLC now owns 8,622 shares of the technology company’s stock worth $659,000 after purchasing an additional 5,361 shares in the last quarter. Institutional investors and hedge funds own 85.25% of the company’s stock.

Nutanix News Summary

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.