Nebius Group (NASDAQ:NBIS) Shares Gap Up on Analyst Upgrade

Key Points

• Nebius Group shares gapped up after Northland Securities raised its price target sharply from $248 to $410 and kept an outperform rating. The stock opened at $186.97 versus a prior close of $177.71.
• Analyst sentiment remains broadly positive, with nine Buy ratings and six Hold ratings, giving Nebius a consensus Moderate Buy and an average price target of $219.83. Several other firms recently initiated or raised targets as well.
• The company’s latest earnings topped expectations, with EPS of -$0.23 versus an expected -$0.81 and revenue of $399 million, up 684% year over year. However, insiders have been selling shares, including the CEO and another executive on July 1.

Nebius Group N.V. (NASDAQ:NBIS - Get Free Report)'s share price gapped up before the market opened on Monday after Northland Securities raised their price target on the stock from $248.00 to $410.00. The stock had previously closed at $177.71, but opened at $186.97. Northland Securities currently has an outperform rating on the stock. Nebius Group shares last traded at $186.8930, with a volume of 3,363,405 shares.

Several other equities research analysts also recently weighed in on NBIS. Cantor Fitzgerald started coverage on Nebius Group in a research report on Thursday, April 9th. They set an "overweight" rating and a $129.00 price target on the stock. Citizens Jmp boosted their price objective on Nebius Group from $175.00 to $270.00 and gave the company a "market outperform" rating in a report on Thursday, May 14th. Wolfe Research initiated coverage on Nebius Group in a research note on Thursday, April 16th. They issued a "peer perform" rating on the stock. BNP Paribas Exane initiated coverage on Nebius Group in a report on Tuesday, June 2nd. They set a "neutral" rating and a $255.00 target price on the stock. Finally, Weiss Ratings upgraded Nebius Group from a "hold (c-)" rating to a "hold (c)" rating in a research report on Wednesday, May 20th. Nine research analysts have rated the stock with a Buy rating and six have given a Hold rating to the company. According to data from MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and an average price target of $219.83.

Insider Buying and Selling

In related news, insider Andrey Korolenko sold 33,871 shares of the business's stock in a transaction on Wednesday, July 1st. The shares were sold at an average price of $235.45, for a total value of $7,974,926.95. Following the completion of the sale, the insider owned 551,338 shares of the company's stock, valued at approximately $129,812,532.10. The trade was a 5.79% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, CEO Arkadiy Volozh sold 46,627 shares of the company's stock in a transaction 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 transaction, the chief executive officer owned 821,662 shares of the company's stock, valued at $193,460,317.90. This represents a 5.37% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold 668,405 shares of company stock valued at $140,422,170 in the last 90 days.

Institutional Trading of Nebius Group

A number of institutional investors and hedge funds have recently modified their holdings of NBIS. Allied Private Wealth LLC purchased a new position in Nebius Group in the 2nd quarter valued at about $25,000. Parkside Financial Bank & Trust acquired a new position in Nebius Group in the 4th quarter valued at $25,000. Root Financial Partners LLC acquired a new position in Nebius Group in the 4th quarter valued at $26,000. SHP Wealth Management purchased a new position in Nebius Group in the 4th quarter valued at $26,000. Finally, Sound Income Strategies LLC lifted its holdings in Nebius Group by 62.5% in the 1st quarter. Sound Income Strategies LLC now owns 260 shares of the company's stock valued at $27,000 after purchasing an additional 100 shares in the last quarter. Hedge funds and other institutional investors own 21.90% of the company's stock.

Nebius Group Stock Performance

The company has a debt-to-equity ratio of 1.16, a quick ratio of 8.33 and a current ratio of 8.33. The firm's 50 day simple moving average is $228.03 and its 200-day simple moving average is $153.38. The company has a market cap of $45.91 billion, a price-to-earnings ratio of 58.48 and a beta of 4.10.

Nebius Group (NASDAQ:NBIS - Get Free Report) last issued its earnings results on Thursday, May 14th. The company reported ($0.23) EPS for the quarter, beating analysts' consensus estimates of ($0.81) by $0.58. The business had revenue of $399.00 million during the quarter, compared to analysts' expectations of $375.13 million. Nebius Group had a net margin of 95.27% and a negative return on equity of 9.11%. Nebius Group's revenue for the quarter was up 684.0% compared to the same quarter last year. On average, sell-side analysts predict that Nebius Group N.V. will post -1.91 EPS for the current year.

About Nebius Group

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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