Nebius Group (NASDAQ:NBIS) Shares Up 8.7% - Should You Buy?

Key Points

• Nebius Group shares surged 8.7% on Monday, trading as high as $263.80 after closing at $240.30, with heavy volume of 14.2 million shares.
• Analyst sentiment is mixed but generally positive: the stock has a Moderate Buy rating overall, with nine Buy ratings and six Hold ratings, and an average price target of $203.25.
• The company recently posted a smaller-than-expected loss of $0.23 per share and revenue of $399 million, well above estimates, while quarterly revenue jumped 684% year over year.

Nebius Group N.V. (NASDAQ:NBIS - Get Free Report) rose 8.7% during trading on Monday . The stock traded as high as $263.80 and last traded at $261.15. 14,235,268 shares traded hands during mid-day trading, a decline of 12% from the average session volume of 16,261,326 shares. The stock had previously closed at $240.30.

Analyst Upgrades and Downgrades

A number of analysts have recently weighed in on NBIS shares. BNP Paribas Exane assumed coverage on Nebius Group in a research report on Tuesday, June 2nd. They set a "neutral" rating and a $255.00 price target on the stock. Weiss Ratings upgraded Nebius Group from a "hold (c-)" rating to a "hold (c)" rating in a research report on Wednesday, May 20th. Freedom Capital downgraded Nebius Group from a "strong-buy" rating to a "hold" rating in a research note on Monday, April 13th. Wolfe Research started coverage on shares of Nebius Group in a report on Thursday, April 16th. They set a "peer perform" rating for the company. Finally, Morgan Stanley upped their price target on shares of Nebius Group from $126.00 to $144.00 and gave the stock an "equal weight" rating in a research report on Thursday, May 14th. Nine research analysts have rated the stock with a Buy rating and six have given a Hold rating to the stock. According to MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and an average target price of $203.25.

Nebius Group Trading Up 8.7%

The company has a debt-to-equity ratio of 1.16, a current ratio of 8.33 and a quick ratio of 8.33. The business has a fifty day moving average of $211.62 and a 200-day moving average of $140.03. The stock has a market capitalization of $66.08 billion, a price-to-earnings ratio of 84.24 and a beta of 4.03.

Nebius Group (NASDAQ:NBIS - Get Free Report) last posted its quarterly earnings results on Thursday, May 14th. The company reported ($0.23) earnings per share (EPS) for the quarter, beating the consensus estimate of ($0.77) by $0.54. The company had revenue of $399.00 million for the quarter, compared to analysts' expectations of $375.13 million. Nebius Group had a negative return on equity of 9.11% and a net margin of 95.27%.The business's quarterly revenue was up 684.0% compared to the same quarter last year. On average, equities analysts anticipate that Nebius Group N.V. will post -1.91 earnings per share for the current fiscal year.

Insider Buying and Selling at Nebius Group

In other Nebius Group news, CFO Sanchez Maria Del Dado Alonso sold 1,509 shares of the firm's stock in a transaction that occurred on Tuesday, June 2nd. The stock was sold at an average price of $276.20, for a total value of $416,785.80. Following the sale, the chief financial officer owned 12,672 shares of the company's stock, valued at $3,500,006.40. This trade represents a 10.64% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available through this link. Also, CTO Danila Shtan sold 15,678 shares of the business's stock in a transaction dated Thursday, June 4th. The shares were sold at an average price of $238.96, for a total value of $3,746,414.88. Following the transaction, the chief technology officer owned 291,700 shares in the company, valued at $69,704,632. This represents a 5.10% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 700,710 shares of company stock valued at $132,153,501 in the last quarter.

Hedge Funds Weigh In On Nebius Group

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

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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