Nebius Group (NASDAQ:NBIS) Shares Gap Up - Still a Buy?

Key Points

• Nebius Group shares gapped up to open at $230.38 after closing at $208.37, reflecting a sharp premarket move and heavy trading volume.
• Recent analyst action has been mixed but generally positive: several firms have initiated or raised ratings, and the stock currently carries a Moderate Buy consensus with a $182.75 average price target.
• The company posted a strong latest quarter, with revenue up 684% year over year and EPS of -$0.23, beating estimates; however, insiders have been selling shares and the stock trades at a high valuation.

Nebius Group N.V. (NASDAQ:NBIS - Get Free Report)'s stock price gapped up before the market opened on Thursday . The stock had previously closed at $208.37, but opened at $230.38. Nebius Group shares last traded at $220.6190, with a volume of 5,956,080 shares trading hands.

Analyst Ratings Changes

Several research analysts recently weighed in on NBIS shares. Wolfe Research started coverage on Nebius Group in a research report on Thursday, April 16th. They set a "peer perform" rating on the stock. Compass Point started coverage on Nebius Group in a research report on Wednesday, February 18th. They set a "buy" rating and a $150.00 price target on the stock. Weiss Ratings raised Nebius Group from a "hold (c-)" rating to a "hold (c)" rating in a research report on Wednesday, May 20th. Bank of America increased their price objective on Nebius Group from $175.00 to $205.00 and gave the stock a "buy" rating in a report on Monday, May 11th. Finally, Cantor Fitzgerald began coverage on Nebius Group in a report on Thursday, April 9th. They set an "overweight" rating and a $129.00 price objective for the company. One equities research analyst has rated the stock with a Strong Buy rating, nine have issued a Buy rating and five have given a Hold rating to the company's stock. According to MarketBeat, Nebius Group presently has a consensus rating of "Moderate Buy" and a consensus price target of $182.75.

Nebius Group Stock Performance

The company has a market cap of $57.47 billion, a P/E ratio of 72.78 and a beta of 4.03. The firm has a 50 day moving average price of $154.40 and a 200-day moving average price of $115.88. The company has a debt-to-equity ratio of 1.16, a quick ratio of 8.33 and a current ratio of 8.33.

Nebius Group (NASDAQ:NBIS - Get Free Report) last announced its earnings results on Thursday, May 14th. The company reported ($0.23) earnings per share for the quarter, beating the consensus estimate of ($0.77) by $0.54. Nebius Group had a negative return on equity of 9.11% and a net margin of 95.27%.The firm had revenue of $399.00 million during the quarter, compared to the consensus estimate of $375.13 million. The business's revenue was up 684.0% on a year-over-year basis. On average, research analysts predict that Nebius Group N.V. will post -2.33 EPS for the current year.

Insider Buying and Selling

In other Nebius Group news, CRO Marc Boroditsky sold 4,500 shares of Nebius Group stock in a transaction that occurred on Friday, May 15th. The stock was sold at an average price of $217.55, for a total transaction of $978,975.00. Following the sale, the executive directly owned 37,662 shares of the company's stock, valued at approximately $8,193,368.10. The trade was a 10.67% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Elena Bunina sold 10,894 shares of the firm's stock in a transaction that occurred on Wednesday, May 13th. The stock was sold at an average price of $206.87, for a total value of $2,253,641.78. Following the transaction, the director owned 10,772 shares of the company's stock, valued at $2,228,403.64. This trade represents a 50.28% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 666,935 shares of company stock valued at $123,541,848 over the last ninety days.

Hedge Funds Weigh In On Nebius Group

Several hedge funds and other institutional investors have recently modified their holdings of NBIS. Orbis Allan Gray Ltd raised its position in Nebius Group by 12.4% in the 2nd quarter. Orbis Allan Gray Ltd now owns 17,651,930 shares of the company's stock valued at $976,681,000 after purchasing an additional 1,949,708 shares during the last quarter. Fred Alger Management LLC raised its position in Nebius Group by 33.4% in the 3rd quarter. Fred Alger Management LLC now owns 10,132,279 shares of the company's stock valued at $1,137,551,000 after purchasing an additional 2,536,832 shares during the last quarter. Jericho Capital Asset Management L.P. raised its position in Nebius Group by 55.7% in the 3rd quarter. Jericho Capital Asset Management L.P. now owns 4,607,497 shares of the company's stock worth $517,284,000 after purchasing an additional 1,648,497 shares during the last quarter. Morgan Stanley raised its position in Nebius Group by 35.2% in the 4th quarter. Morgan Stanley now owns 3,704,659 shares of the company's stock worth $310,099,000 after purchasing an additional 964,984 shares during the last quarter. Finally, Clear Street Group Inc. raised its position in Nebius Group by 95.0% in the 4th quarter. Clear Street Group Inc. now owns 3,511,656 shares of the company's stock worth $293,943,000 after purchasing an additional 1,710,924 shares during the last quarter. Institutional investors own 21.90% of the company's stock.

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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