1832 Asset Management Cuts Nutanix Stake by 89.8% to $2.16 Million

1832 Asset Management L.P. has significantly reduced its investment in Nutanix (NASDAQ: NTNX), cutting its stake by 89.8% during the second quarter of 2023. According to a recent Form 13F filing with the U.S. Securities and Exchange Commission, the institutional investor now holds 28,282 shares of the technology company, valued at approximately $2.16 million after divesting 248,318 shares in the quarter.

This reduction highlights a broader trend among institutional investors. Notably, Twin Tree Management LP acquired a new stake valued at $29,000 in the first quarter, while SouthState Corp also entered the market with an investment of about $32,000. Additionally, Farther Finance Advisors LLC increased its holdings by 42.6% during the same period, now owning 502 shares worth $38,000. Other investors, like V Square Quantitative Management LLC and Banque Transatlantique SA, similarly added to their positions, indicating a growing interest in Nutanix despite the recent sell-off.

Analyst Ratings and Market Performance

In light of these developments, analysts have reacted to Nutanix’s performance. On November 26, 2023, Bank of America revised its target price for Nutanix from $93.00 to $75.00, maintaining a “buy” rating. Similarly, Piper Sandler reissued an “overweight” rating with a new price objective of $72.00, down from $88.00. Other firms, including Barclays and KeyCorp, also adjusted their ratings, with target prices ranging from $64.00 to $65.00. A total of thirteen analysts have assigned a Buy rating, while six have rated it as Hold, leading to a consensus rating of “Moderate Buy” with a price target of $75.13.

As of November 25, 2023, Nutanix reported earnings of $0.41 per share, meeting analysts’ expectations. The company’s revenue for the quarter reached $670.58 million, though it fell short of the anticipated $677.23 million. In comparison to the same period last year, Nutanix saw a revenue increase of 13.5%, reflecting its resilience in the competitive technology sector.

Insider Transactions and Stock Performance

Recent insider trading has also garnered attention. On October 2, 2023, Director Teresa Gayle Sheppard sold 3,500 shares at an average price of $76.48, totaling $267,680. After this transaction, she retained 22,400 shares, valued at $1,713,152, marking a 13.51% decrease in her ownership. Additionally, Rukmini Sivaraman, the Chief Financial Officer, sold 11,391 shares on September 16, 2023, for $892,370.94, reducing her ownership by 4.28%.

The stock has shown volatility, opening at $47.32 on November 25, 2023. The company has a market capitalization of $12.72 billion and recent performance indicates a fifty-day moving average of $65.15 and a two-hundred-day average of $70.96. Nutanix’s stock has fluctuated between a one-year low of $46.12 and a high of $83.36, reflecting the challenges and opportunities within the technology market.

As Nutanix continues to navigate these changes, the company remains focused on delivering cloud solutions and enterprise infrastructure services to a global clientele, operating across diverse geographic segments including the United States, Europe, and Asia Pacific.