5,204 Shares in Nebius Group N.V. $NBIS Bought by Kirtland Hills Capital Management LLC

Key Points

• Kirtland Hills Capital Management initiated a 5,204-share position in Nebius Group during the second quarter, valued at approximately $1.44 million. Institutional investors and hedge funds collectively own 21.9% of NBIS.
• Nebius reported a strong quarter, with revenue rising 454% year over year to $582.3 million and adjusted EPS of negative $0.12, beating estimates. Analysts maintain a “Moderate Buy” consensus rating with an average price target of $226.
• The company’s AI-cloud expansion is attracting investor interest, but its upsized $5 billion convertible-note offering and recent insider sales raise dilution and selling-pressure concerns.

Kirtland Hills Capital Management LLC bought a new stake in Nebius Group N.V. (NASDAQ:NBIS - Free Report) in the second quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission (SEC). The firm bought 5,204 shares of the company's stock, valued at approximately $1,437,000.

Several other hedge funds and other institutional investors have also recently added to or reduced their stakes in NBIS. Royal Bank of Canada bought a new stake in Nebius Group during the 1st quarter worth about $1,628,000. Millennium Management LLC acquired a new position in shares of Nebius Group during the 1st quarter worth about $11,563,000. NewEdge Advisors LLC bought a new position in shares of Nebius Group in the 1st quarter valued at about $40,000. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC bought a new position in shares of Nebius Group in the 1st quarter valued at about $9,084,000. Finally, Daiwa Securities Group Inc. bought a new position in shares of Nebius Group in the 2nd quarter valued at about $68,000. 21.90% of the stock is currently owned by institutional investors and hedge funds.

Key Headlines Impacting Nebius Group

Here are the key news stories impacting Nebius Group this week:

• Positive Sentiment: Nebius reportedly raised its convertible-note offering to $5 billion to fund additional AI cloud capacity. The company’s strong revenue growth, customer demand and recent earnings beat support management’s expansion strategy. Nebius Group announces pricing of upsized private offering
• Positive Sentiment: Wolfe Research sees Nebius’ annual recurring revenue potentially increasing tenfold over the next four years, offering a bullish long-term view if AI compute demand and customer contracts continue to scale. Wall Street Says Nebius Group ARR Can 10X in 4 Years
• Positive Sentiment: Reports that Nebius is in discussions involving Decart AI have generated interest because Decart’s technology could materially improve GPU inference efficiency. The company is also benefiting from a broader shortage of AI computing capacity. Nebius targets Decart AI
• Neutral Sentiment: Analyst commentary remains divided: some investors highlight rapid growth, customer prepayments and long-term contracts, while comparisons with Super Micro favor the latter on valuation and earnings visibility. Nebius: The Market Is Arguing About The Wrong Number
• Negative Sentiment: The enlarged convertible financing has intensified dilution concerns. The deal includes $3 billion of 0.50% notes due 2030 and $2 billion of 4.50% notes due 2034; conversion into shares could reduce existing investors’ ownership and pressure the stock. Nebius prices upsized convertible debt offering
• Negative Sentiment: Reports of insider selling have added to near-term selling pressure and raised concern after the stock’s substantial advance. Nebius stock price after insider selling
• Negative Sentiment: BCA Research and Michael Burry warned that heavily financed “neocloud” companies could face commoditized pricing, excessive leverage and poor returns on capital if AI infrastructure supply outpaces profitable demand. BCA Research warning on Nebius

Nebius Group Stock Down 0.4%

Shares of NBIS stock opened at $219.13 on Friday. The company has a debt-to-equity ratio of 0.82, a quick ratio of 4.03 and a current ratio of 4.03. The firm's 50-day moving average is $224.05 and its 200-day moving average is $173.10. The stock has a market cap of $55.44 billion, a price-to-earnings ratio of -7,301.90 and a beta of 4.23. Nebius Group N.V. has a 52-week low of $63.26 and a 52-week high of $299.86.

Nebius Group (NASDAQ:NBIS - Get Free Report) last issued its earnings results on Thursday, August 13th. The company reported ($0.12) earnings per share (EPS) for the quarter, beating the consensus estimate of ($0.67) by $0.55. The business had revenue of $582.30 million during the quarter, compared to the consensus estimate of $567.91 million. Nebius Group had a net margin of 4.55% and a negative return on equity of 6.03%. Nebius Group's revenue was up 454% on a year-over-year basis. During the same period last year, the business posted $2.38 EPS. Sell-side analysts predict that Nebius Group N.V. will post -4.24 EPS for the current year.

Analyst Upgrades and Downgrades

Several research analysts recently commented on NBIS shares. Zacks Research cut Nebius Group from a "strong-buy" rating to a "hold" rating in a research report on Friday, July 31st. Bank of America boosted their price target on Nebius Group from $240.00 to $280.00 and gave the stock a "buy" rating in a research report on Monday, June 8th. Citizens Jmp upped their price objective on Nebius Group from $175.00 to $270.00 and gave the stock a "market outperform" rating in a research note on Thursday, May 14th. Piper Sandler began coverage on Nebius Group in a research note on Monday, August 3rd. They set a "neutral" rating and a $224.00 price objective on the stock. Finally, BNP Paribas Exane initiated coverage on Nebius Group in a report on Tuesday, June 2nd. They issued a "neutral" rating and a $255.00 price objective for the company. One investment analyst has rated the stock with a Strong Buy rating, ten have issued a Buy rating and seven have given a Hold rating to the company's stock. According to MarketBeat, the company currently has a consensus rating of "Moderate Buy" and a consensus target price of $226.00.

Insider Buying and Selling

In other news, CEO Arkadiy Volozh sold 46,627 shares of Nebius Group stock in a transaction that occurred on Wednesday, July 1st. The stock was sold at an average price of $235.45, for a total transaction of $10,978,327.15. Following the completion of the transaction, the chief executive officer directly owned 821,662 shares in the company, valued at approximately $193,460,317.90. The trade was a 5.37% decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, Director Charles E. Ryan sold 50,000 shares of Nebius Group stock in a transaction that occurred on Friday, August 14th. The stock was sold at an average price of $265.53, for a total value of $13,276,500.00. Following the transaction, the director owned 272,533 shares of the company's stock, valued at $72,365,687.49. This 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. Over the last 90 days, insiders sold 186,506 shares of company stock valued at $46,264,387.

Nebius Group Company Profile

Nebius Group N.V., a technology company, builds intelligent products and services powered by machine learning and other technologies to help consumers and businesses navigate the online and offline world. The company's services include Nebius AI, an AI-centric cloud platform that offers infrastructure and computing capability for AI deployment and machine-learning oriented solutions; and Toloka AI that offers generative AI (GenAI) solutions at every stage of the GenAI lifecycle, such as data annotation and generation, model training and fine-tuning, and quality assessment of large language model for accuracy and reliability.

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