Nutanix Story

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NTNX -- USA Stock  

USD 21.39  0.25  1.16%

Nutanix Revenue to Assets are fairly stable at the moment as compared to the past year. Nutanix reported Revenue to Assets of 0.80 in 2019. Asset Turnover is likely to rise to 0.78 in 2020, whereas Net Income Per Employee is likely to drop (113 K) in 2020. This short post will break down Nutanix as a possible investment alternative for your portfolios. We will provide a perspective on Nutanix future direction.
Published over three weeks ago
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Are Nutanix (NASDAQ:NTNX) investors starting to hold back?
The company has a beta of 0.4626. Let's try to break down what Nutanix's beta means in this case. As the market goes up, the company is expected to outperform it. However, if the market returns are negative, Nutanix will likely underperform. The beta indicator helps investors understand whether Nutanix moves in the same direction as the rest of the market, and how volatile (i.e., risky) it is compared to the market (i.e., selected benchmark). In other words, if Nutanix deviates very little from the market, it does not add much risk to the portfolio, but it also doesn't increase the expected returns.
There are currently many different techniques concerning forecasting the market as a whole as well as predicting future values of individual securities such as Nutanix. Regardless of method or technology, to accurately forecast the stock market is more a matter of luck rather than a particular technique. Nevertheless, trying to predict the stock market accurately is still an essential part of the overall investment decision process. Using different forecasting techniques and comparing the results might improve your chances of accuracy even though unexpected events may often change the market sentiment and impact your forecasting results.

Predictive Modules for Nutanix

How important is Nutanix's Liquidity

Nutanix financial leverage refers to using borrowed capital as a funding source to finance Nutanix ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Nutanix financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Please check the breakdown between Nutanix's total debt and its cash.

What do experts say?

Stock analysis is a method for investors and traders to make buying and selling decisions. By studying and evaluating past and current data, investors and traders attempt to gain an edge in the markets by making informed decisions. It is good to see analyst projects for Nutanix, but it might be worth checking our own buy vs. sell analysis

Exercise or conversion by Aaron Boynton of 1562 shares of Nutanix subject to Rule 16b-3

Legal trades by Nutanix insiders are very common, as founders, directors, or employees of any publicly traded firm often have stock or stock options. These trades are made public in the United States through the filing of Form 4 of the Securities and Exchange Commission. Below entry was recorded recently and is publicly available as an insider trade:
Nutanix insider trading alert for exercise of restricted stock units by Aaron Boynton, Chief Accounting Officer, on 16th of September 2020. This event was filed by Nutanix Inc with SEC on 2020-09-16. Statement of changes in beneficial ownership - SEC Form 4. Aaron Boynton currently serves as vice president corporate controller of Nutanix [view details]   
Note, although insider trading is legal, in the United States, Canada, Australia, and Germany, for mandatory reporting purposes, corporate insiders are defined as a company's officers, directors, and any beneficial owners of more than 10% of a class of the company's equity securities.

Breaking it down a bit more

Nutanix shows above-average downside volatility for the selected time horizon. We advise investors to inspect Nutanix further and ensure that all market timing and asset allocation strategies are consistent with the estimation of Nutanix future alpha.

Returns Breakdown

Return on Investment(82.83)
Return on Assets(0.43)
Return on Equity(1.84)
Return Capital(0.74)
Return on Sales(0.62)

Will Nutanix current rise continue?

Mean deviation is down to 2.75. It may suggest a possible volatility slide. Nutanix shows above-average downside volatility for the selected time horizon. We advise investors to inspect Nutanix further and ensure that all market timing and asset allocation strategies are consistent with the estimation of Nutanix future alpha.

The Bottom Line

While some other companies within the software?infrastructure industry are still a little expensive, even after the recent corrections, Nutanix may offer a potential longer-term growth to investors. Taking everything into account, as of the 30th of August 2020, our current 30 days Buy-Hold-Sell recommendation on the company is Hold. We believe Nutanix is currently overvalued with quite high chance of financial distress for the next two years.

About Contributor

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Achuva Shats do not own shares of Nutanix. Please refer to our Terms of Use for any information regarding our disclosure principles.

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