Nebius Group (NASDAQ:NBIS) Now Covered by Rothschild & Co Redburn

Key Points

• Rothschild & Co Redburn initiated coverage of Nebius Group with a “sell” rating and an $84 price target, implying 62.42% downside from the stock’s current price.
• Analyst opinion remains mixed: despite the new bearish call, Nebius has a consensus “Moderate Buy” rating and an average price target of $232.20.
• Nebius reported quarterly revenue of $582.3 million, up 454% year over year, and an adjusted loss of $0.12 per share that beat expectations; insiders have sold 160,201 shares worth $39.2 million over the past 90 days.

Equities researchers at Rothschild & Co Redburn began coverage on shares of Nebius Group (NASDAQ:NBIS - Get Free Report) in a note issued to investors on Monday, Benzinga reports. The brokerage set a "sell" rating and a $84.00 price target on the stock. Rothschild & Co Redburn's target price suggests a potential downside of 62.42% from the stock's current price.

NBIS has been the subject of a number of other research reports. Bank of America boosted their price objective on Nebius Group from $240.00 to $280.00 and gave the company a "buy" rating in a research note on Monday, June 8th. DA Davidson reaffirmed a "neutral" rating and issued a $175.00 target price on shares of Nebius Group in a report on Thursday, August 13th. Weiss Ratings downgraded Nebius Group from a "hold (c-)" rating to a "sell (d+)" rating in a research note on Wednesday, September 9th. Wall Street Zen upgraded Nebius Group from a "strong sell" rating to a "sell" rating in a research note on Sunday, August 16th. Finally, Piper Sandler began coverage on shares of Nebius Group in a research note on Monday, August 3rd. They issued a "neutral" rating and a $224.00 target price for the company. Two investment analysts have rated the stock with a Strong Buy rating, nine have issued a Buy rating, six have given a Hold rating and two have issued a Sell rating to the stock. According to MarketBeat, the company currently has a consensus rating of "Moderate Buy" and an average price target of $232.20.

Nebius Group Price Performance

Shares of NASDAQ:NBIS opened at $223.54 on Monday. The firm has a 50 day simple moving average of $212.09 and a 200-day simple moving average of $191.04. Nebius Group has a twelve month low of $73.52 and a twelve month high of $299.86. The company has a current ratio of 4.03, a quick ratio of 4.03 and a debt-to-equity ratio of 0.82. The company has a market capitalization of $56.56 billion, a PE ratio of -7,448.85 and a beta of 4.23.

Nebius Group (NASDAQ:NBIS - Get Free Report) last announced its quarterly earnings results on Thursday, August 13th. The company reported ($0.12) earnings per share for the quarter, beating analysts' consensus estimates of ($0.67) by $0.55. Nebius Group had a net margin of 4.55% and a negative return on equity of 6.03%. The firm had revenue of $582.30 million during the quarter, compared to analysts' expectations of $567.91 million. During the same period in the previous year, the company earned $2.38 earnings per share. Nebius Group's quarterly revenue was up 454% compared to the same quarter last year. On average, equities analysts predict that Nebius Group will post -3.76 EPS for the current fiscal year.

Insider Activity at Nebius Group

In other news, CRO Marc Boroditsky sold 7,000 shares of the company's stock in a transaction on Monday, September 14th. The shares were sold at an average price of $209.08, for a total transaction of $1,463,560.00. Following the transaction, the executive directly owned 5,000 shares of the company's stock, valued at $1,045,400. This represents a 58.33% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Charles Ryan sold 50,000 shares of the company's stock in a transaction on Friday, August 14th. The stock was sold at an average price of $265.53, for a total transaction of $13,276,500.00. Following the transaction, the director directly owned 272,533 shares in the company, valued at approximately $72,365,687.49. This trade represents a 15.50% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last ninety days, insiders sold 160,201 shares of company stock worth $39,208,414.

Institutional Investors Weigh In On Nebius Group

A number of hedge funds and other institutional investors have recently modified their holdings of the stock. IKE Capital LLC purchased a new position in Nebius Group in the 2nd quarter valued at approximately $394,000. Revere Asset Management Inc purchased a new stake in shares of Nebius Group in the second quarter valued at $2,476,000. Tortoise Investment Management LLC purchased a new position in shares of Nebius Group during the second quarter valued at approximately $529,000. Sequoia Financial Advisors LLC lifted its stake in shares of Nebius Group by 11.9% during the 2nd quarter. Sequoia Financial Advisors LLC now owns 6,623 shares of the company's stock worth $1,829,000 after purchasing an additional 702 shares during the period. Finally, Van Hulzen Asset Management LLC purchased a new position in Nebius Group during the second quarter worth about $220,000. 21.90% of the stock is currently owned by institutional investors and hedge funds.

Nebius Group Company Profile

Nebius Group N.V. NASDAQ: NBIS is a technology company focused on artificial intelligence infrastructure and related services. Its principal business is Nebius AI, a cloud platform that provides computing, storage, networking and managed infrastructure designed to support the development and deployment of AI applications, including access to accelerated computing resources.

The company also operates or develops businesses in adjacent technology markets. These include Toloka, which provides data and evaluation services for machine-learning systems; TripleTen, an online education platform offering technology-focused training; and Avride, a developer of autonomous driving and delivery technologies.

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