Rajiv Ramaswami, the President and CEO of Nutanix, Inc. (NASDAQ:NTNX), has sold 95,852 shares of the company’s Class A common stock. The sale, which took place on February 4, was executed at a price of $70 per share, totaling approximately $6.7 million. The transaction occurs as Nutanix trades near its 52-week high, with the stock showing impressive momentum, gaining over 52% in the past six months. This transaction was conducted automatically as part of a pre-established Rule 10b5-1 trading plan that Ramaswami adopted on September 9, 2024. Following this sale, Ramaswami retains ownership of 540,463 shares in the company. The sale comes as analysts maintain a bullish outlook, with price targets ranging from $73 to $90. According to InvestingPro, Nutanix boasts impressive gross profit margins of 85% and is expected to achieve profitability this year. For deeper insights into insider trading patterns and comprehensive analysis, InvestingPro subscribers can access the detailed Pro Research Report, available for over 1,400 US stocks.
In other recent news, Nutanix, a leader in cloud software and hyperconverged infrastructure solutions, has seen a flurry of activity. The company recently disclosed plans to secure a new revolving credit facility estimated at $500 million to bolster its financial flexibility for general corporate purposes. Additionally, UBS initiated coverage on Nutanix shares with a Buy rating and a price target of $81.00, citing a potential annual recurring revenue (ARR) estimate of $3.1 billion by FY27.
On the other hand, Piper Sandler maintained an Overweight rating on Nutanix and increased the price target to $83 from $77, following the company’s robust fiscal first-quarter revenue and free cash flow performance. In contrast, Needham raised the price target for Nutanix to $90.00, up from the previous $80.00, while maintaining its Buy rating. The firm cited Nutanix’s strong operating margin and the ability to continue its investments aimed at growth as reasons for the adjustment.
Meanwhile, Piper Sandler also reported heightened investor interest in Cloudflare (NYSE:NET) and ServiceNow (NYSE:NOW) following a recent Infrastructure Software (ETR:SOWGn) Bus Tour. The tour included visits to 13 technology companies, with discussions highlighting the potential bottoming out of macro headwinds, a possible increase in IT budgets, and opportunities in AI. These developments indicate an optimistic outlook for these companies in the near future.
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