Nutanix Inc (NTNX) continues to reel from recent record-high levels
Wall Street newcomer
Nutanix Inc (NASDAQ:NTNX) has taken a step back this morning, after Summit Redstone Partners weighed in bearishly. Specifically, the brokerage firm initiated coverage on the stock with a "sell" rating and a $16 price target -- a 53% discount to current levels. "We think the competitive threat to Nutanix is real and cannot be overlooked," explained Summit Redstone in a note, adding that "the euphoria ... may not last."
As alluded to, shares of the enterprise cloud concern are getting hitting hard, down 1.7% at $34.12. Since hitting a record high of $46.78 on its second day of trading, less than two weeks ago, NTNX has plunged 27%.
Today's losses could leave bullish options bettors kicking rocks. In terms of open interest, Nutanix Inc's (NASDAQ:NTNX) most popular strike has been the deep out-of-the-money October 40 call. Based on data from
Trade-Alert, a sizable portion of these positions were bought to open, hinting at
expectations for an extended run beyond the round-number level. But with the stock diving, delta on the option has sunk to just 0.13, or 13%.
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