Based on the latest quarterly report and current stock prices it is (arguably) safe to invest in Nutanix Inc (NASDAQ:NTNX) stock. Although nothing is guaranteed in the stock market as prices can loosely swing either way in a short or no notice at all, it is only fair to note that Nutanix is reasonably sound to trade in.
The company recently reported outstanding first quarter earnings for the 2019 fiscal year. The company generated revenue of $313.3 million surpassing analysts’ projection of $305.3 million representing a 13.7% rise from previous revenue.
As of the Wednesday Dec 26, the company’s stock closed at $38.92 from a 52-week high of $62.71 and an all time 52-week low of $30.34.
Taking a closer analysis, in the past twelve weeks the stock moved -7.04%. In the recent 4 weeks, the shares moved 22.34% and -4.0% over the previous 5 trading sessions.
The stock has experienced a remarkable trading volume of over 1.5 million shares. Several analysts covering Nutanix’s stock have given it either a strong buy or buy with a recommendation of 1.94.
The recommendation is based on a 1-5 numerical scale with 1.0 denoting a strong buy and 5.0 representing a strong sell. Nutanix’s stock stands at almost 2.0 representing a Buy rating which is not bad at all. Besides giving the company’s stock an impressive approval rating, the analysts have also projected an average price target of $58.86 for the stock. This indicates that they believe that the company’s stock will appreciate in value by the next quarter.
Looking into other indicators, based on results from the company’s Q3 2019 reports the stock’s Earnings per share is -0.25 against a -0.13 reported for the same period last year.
Stock-wise Nutanix is looking bright in the eyes of investors, now let us examine whether the company can manage its debts and continue operating. Well, the company boosts a market valuation Eight billion Us Dollars. According to its books of accounts, the company accrued a $437 million debt over the past one year against its cash reserves and short-term investments of about $965 million.
Over the 12 months period, the company yielded a $132 million operating cash representing 30% cash to debt ratio. These numbers indicate that indeed, Nutanix can comfortably manage its debt given that its assets are valued way more than outstanding debts.
Spicing up product line
Making good profit and managing to remain sustainable in a highly competitive tech industry is never easy. However, Nutanix has beaten all odds to achieve these desirables managing to keep its stock appealing to both short-term and long term investors.
Examining the company’s innovative product line and strategic plans for future growths justifies its current sound financial grounds. The company has been focused in enhancing customer-satisfaction with innovative products and services.
Notably, the company is working on ways of bettering its Cloud Computing services and becoming industry’s leader in the sector. This product alone generated about 51% of the total revenue for the company from the previous 20%. The company realizes this and is already planning to make it even better. At the London ExCel conference and exhibition centre the company’s CEO Dheeraj Pandey revealed that, “We have made enterprise computing hardware and software into white noise that ranges from the mainframe to wearables, and on to IoT, and to the edge where palm-sized servers will be the key to the distributed data centre. The next target is now the cloud itself and bringing cloud computing to everybody.”
Sunil Potti, Nutanix’s Chief product and development Officer on his part speaking on the same subject matter stated that the company is focused in developing hyper-converge the clouds now that they already have the hyper-converged the infrastructure. The new features will make the company able to provide an array of services to their clientele in regards to secure data storage.