Nutanix Inc (NTNX) Stock Down After Price Target Increase at RBC Capital Markets

Nutanix Inc (NASDAQ: NTNX) shares were down on Wednesday Nov 30 with lower trade volume than normal after a number of analysts weighed in on the investing value of the stock, increasing the price target of stock.

Meanwhile, the Dow Jones Industrial Average hit an intraday record after opening higher Wednesday, led by the energy sector as hopes rose that the world’s major oil producers are near a deal on limiting output.

The benchmark S&P 500 and Dow were on track to post their largest monthly gains since March.

The S&P 500 SPX, +0.22% gained 5 points, or 0.2%, to 2,209. The Dow Jones Industrial Average DJIA, +0.41% added 62 points, or 0.3%, to 19,184, trading in record territory. The Nasdaq Composite COMP, -0.08% was 7 points, or 0.1%, higher at 5,386.

Nutanix Inc (NASDAQ: NTNX) had its price target boosted by equities researchers at RBC Capital Markets from $36.00 to $38.00. The company currently has a rating of Outperform on the stock. As a means of comparison, a number of other analysts have commented on the stock in recent days, and the company has secured a consensus one-year price target of $32.25, less than the opening price of $34.44, a difference of 9.78 percent. Nutanix Inc stock has a 52-week high of $46.78.

Shares of Nutanix Inc (NASDAQ: NTNX) opened at $34.44 on Tuesday and has traded in a range between, $32.17 and $34.60, and last traded at $32.96, a drop of $1.13 per share or -3.31% over the previous closing price.

Nutanix Inc (NASDAQ: NTNX) currently has a market cap of 1.52B.

Nutanix Inc (NASDAQ: NTNX) Average Daily Trading Volume

793,605 shares crossed the trading desk yesterday, lower than normal, out of a total float 4,991,000. Swing traders often use increases in trading volume to identify large volume accumulation or distribution by institutional investors, so trading volume is likely to increase in the next few days.

While higher trading for short periods will not mean much, however, a trend of heavy trading volume on the buy side over a period of days or weeks delivers a positive cue to market traders that institutions may be moving in, so institutional sponsorship is critical.

Institutional sponsorship commonly refers to ownership of a stock by mutual funds, banks, pension funds and other large institutions.

Institutional investors such as these retain substantial teams of analysts researching thousands of stocks. So watching their interests is a good way to ensure you are buying the right stocks.

Nutanix Inc (NASDAQ: NTNX) Moving Averages

A moving average can also act as support or resistance. In an uptrend a 50-day, 100-day or 200-day moving average may act as a support level, as shown in the figure below.

This is because the average acts like a floor (support), so the price bounces up off of it.

In a downtrend a moving average may act as resistance; like a ceiling, the price hits it and then starts to drop again.

By identifying trends, moving averages allow investors to make those trends work in their favor and increase the number of successful trades.

Trades for Nutanix Inc (NASDAQ: NTNX) have ranged from $23.11 – 46.78, and the stock now has a 50-day MA of $29.71 and 200-day MA of $30.98. Today’s last price is 29.54%% below the 52 week high of $46.78.

Earnings growth is a crucial factor to look at when investing in stocks and investors seek companies that have grown their earnings by at least 25% for the past 3 years.

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