Summarizing The Case For Nutanix Inc. (NTNX), Triumph Group Inc. (TGI)

Nutanix Inc. (NASDAQ: NTNX) shares are -8.16% down in the year-to-date (YTD) period and have moved 2.43% or $0.68 higher in the latest trading session. However, stock’s trailing 12-month performance remains nearly +153.85% lower. Comparatively, the stock is -24.17% down YTD and 17.76% over the trailing 3-month period. If we look at the shorter duration, its week performance is 35.30% and 29.38% over the month.

Analyst Recommendations

On August 10, 2020, Northland Capital recommended the NTNX stock is a Outperform, while earlier, Robert W. Baird had Downgrade the stock as a Neutral on August 28, 2020. 18 analysts offering the recommendations for the stock have a consensus rating of 2.50 to suggest that the NTNX stock is a “Moderate Buy. 2 of the 18 analysts rate the stock as a “Sell”, while 0 has rated it as “Underweight”. 8 recommend buying, with 0 rating it as an Overweight.

The stock currently trades at $28.71 and analysts tracking its performance over the next 12 months have a consensus estimate price target of $28.71. The forecasts give the Nutanix Inc. stock a price target range of $45.00 on the higher side while at least one analyst think the stock could plunge to a low of $16.00. The two limits represent an upside potential of 36.2% or -79.44%.

Earnings Forecast

Analysts estimate the earnings to increase 41.80% in the current quarter to -$0.55, up from the -$0.71 reported in the same quarter a year ago. For the current year, earnings should grow to an average of -$2.09, up 2.80% from -$2.39 reported last year. Analysts also offered guidance for the next financial quarter, with their average projected EPS at between -$0.68 and -$0.35. Wall Street estimates earnings per share to be at an average of -$1.82 for the next year.

Insider Transactions Summary

According to SEC data, total insider shares purchases at the company stands at 59 over the last 12 months, while SEC filings reveal that there have been 22 insider sales over the same period. Insiders have purchases 566,709 shares while those sold by company executives and officers stand at 435,149. The last 3 months have seen insiders trade a total of 131,609 and 48,785 in purchases and sales respectively.

Sangster David, a Chief Operating Officer at the company, sold 9,716 shares worth $0.22 million at $23.12 per share on Jun 16. The CEO and Chairman had earlier sold another 6,576 NTNX shares valued at $0.15 million on Jun 16. The shares were sold at $23.12 per share. Wall Tyler (Chief Legal Officer) sold 8,219 shares at $23.12 per share on Jun 16 for a total of $0.19 million while Boynton Aaron, (Chief Accounting Officer) sold 2,020 shares on Jun 16 for $46698.0 with each share fetching $23.12.

Triumph Group Inc. (NYSE:TGI), on the other hand, is trading around $7.23 with a market cap of $363.89M and analyst research firms have a negative stance on its shares. Analysts predict that the stock will reach $7.45 and spell out a more modest performance – a 2.95% return. Some analysts are even forecasting -$0.47 per share in earnings this year on a short term (1 year) basis.

Let us briefly look at the Triumph Group Inc. (TGI) financials, with a focus on its operating details as indicated in its earnings report for the last quarter.

Company balance sheet and cash flow

TGI’s operating margin was negative on the trailing 12 months basis, remaining steady at -8.60%, while the operating expenses over the recent quarter were at $354.47 million. This represented a 28.4% of the company’s total revenues which amounted $495.08 million. With this in place, we can see that the company’s diluted EPS declined -$5.35 on the year-over-year period, growing to $0.36 as given in the last earnings report.

In terms of the balance sheet & cash flow as of (Sep 2020), the total assets figure advanced to $2.27 billion from $2.98 billion over the previous quarter. The cash flow from operating activities totaled -$197.53 million, significantly lower than the $5.02 million reported in the year-ago quarter. The company’s free cash flow for the quarter was -$205.26 million.

Insider activity

Insiders have transacted a total of 42 times at Triumph Group Inc. over the last 6 months, with insider purchases undertaken 29 times and accounting for 228,043 shares. Insider sales totaled 29,911 shares over the same period, with these deals completed in 13 transactions. Looking at these numbers, we realize that net purchases over that period are 16.0 shares. Insiders now hold a total of 771.2k shares after the latest sales, with 42.00% net shares purchased.

Major holders

Insiders own 1.30% of the company shares, while shares held by institutions stand at 86.90% with a share float percentage of 51.21M. Investors are also buoyed by the number of investors in a company, with Triumph Group Inc. having a total of 243 institutions that hold shares in the company. The top two institutional holders are Blackrock Inc. with over 7.33 million shares worth more than $66.05 million. As of Jun 29, 2020, Blackrock Inc. held 14.08% of shares outstanding.

The other major institutional holder is Price (T.Rowe) Associates Inc, with the investment firm holding over 7.19 million shares as of Jun 29, 2020. The firm’s total holdings are worth over $64.76 million and represent 13.80% of shares outstanding.