Nutanix gains amid bullish options trades, positive Cleveland Research note (update)
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Update 3:46pm: Adds some details from positive Cleveland Research note.
Nutanix (NASDAQ:NTNX) rose 7.1% amid some bullish options trading for the cloud platform provider as well as positive note from Cleveland Research.
Trading of Nutanix (NTNX) options jumped to more than 12x the 20-day daily average, Bloomberg highlighted. The most active contracts, include Jan. 20, 2023 $25 calls, with 7,550 trades.
Near-term demand is suggesting Q4 revenue decline may be less than company's updated guidance, Cleveland Research wrote in a note earlier on Thursday. There's also an expectation that Nutanix (NTNX) will likely gain share from VMWare (VMW), which is in a pending deal to be acquired by Broadcom (AVGO).
The Nutanix (NTNX) move comes after some takeover speculation in late May after the company eliminated its dual-class structure. Nutanix shares have plunged 45% YTD before Thursday a6d the stock dipped 23% on May 26 when the company guided Q4 below consensus.
Recall in August 2020, private equity firm Bain agreed to invest $750 million in Nutanix.
Nutanix (NTNX) short interest is 3.8%.
In late June Barclays started coverage on Nutanix (NTNX) with an overweight rating and highlighted its "attractive" valuation and strong financials.
Nutanix (NTNX) is set to report Q4 results on Aug. 31.