Nebius Group (NASDAQ:NBIS) Stock Price Up 18.8% After Analyst Upgrade

Key Points

• Nebius Group shares jumped 18.8% after Zacks Research upgraded the stock from hold to strong-buy, with trading volume running well above average.
• Other analysts have also turned more constructive on the name, and MarketBeat data now shows a Moderate Buy consensus with a $219.83 average price target.
• The company has seen notable institutional interest and strong AI-related catalysts, including a reported Nvidia 9.3% passive stake and a $775 million debt facility to support expansion.

Nebius Group N.V. (NASDAQ:NBIS - Get Free Report)'s share price rose 18.8% during trading on Tuesday after Zacks Research upgraded the stock from a hold rating to a strong-buy rating. The company traded as high as $217.62 and last traded at $216.92. 25,302,585 shares changed hands during mid-day trading, an increase of 53% from the average daily volume of 16,552,365 shares. The stock had previously closed at $182.62.

Several other research analysts also recently issued reports on the stock. Weiss Ratings raised shares of Nebius Group from a "hold (c-)" rating to a "hold (c)" rating in a research report on Wednesday, May 20th. Morgan Stanley upped their target price on shares of Nebius Group from $126.00 to $144.00 and gave the company an "equal weight" rating in a report on Thursday, May 14th. Cantor Fitzgerald started coverage on shares of Nebius Group in a research note on Thursday, April 9th. They set an "overweight" rating and a $129.00 target price for the company. DA Davidson lowered Nebius Group from a "buy" rating to a "neutral" rating and raised their price target for the stock from $200.00 to $250.00 in a report on Monday, May 18th. Finally, Freedom Capital raised Nebius Group from a "hold" rating to a "strong-buy" rating in a research note on Monday. Two research analysts have rated the stock with a Strong Buy rating, nine have assigned a Buy rating and five have assigned a Hold rating to the company. According to data from MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and a consensus price target of $219.83.

Insider Activity

In related news, CRO Marc Boroditsky sold 10,776 shares of the firm's stock in a transaction dated Tuesday, June 2nd. The shares were sold at an average price of $276.20, for a total value of $2,976,331.20. Following the completion of the sale, the executive owned 26,886 shares in the company, valued at $7,425,913.20. This trade represents a 28.61% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, insider Andrey Korolenko sold 500,000 shares of Nebius Group stock in a transaction that occurred on Wednesday, May 13th. The shares were sold at an average price of $203.24, for a total value of $101,620,000.00. Following the completion of the sale, the insider directly owned 585,209 shares in the company, valued at $118,937,877.16. This represents a 46.07% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold a total of 668,405 shares of company stock valued at $140,422,170 over the last ninety days.

More Nebius Group News

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

• Positive Sentiment: Nvidia disclosed a 9.3% passive stake in Nebius, boosting confidence that the AI infrastructure company has a major strategic backer and deepening industry ties. Nebius stock surges as Nvidia discloses 9.3% stake in neocloud
• Positive Sentiment: Nebius also secured a $775 million debt facility backed by AI infrastructure assets and contracted cash flows, which should help fund expansion while limiting dilution risk. Can Nebius' $775M Debt Facility Accelerate Its Global AI Expansion?
• Positive Sentiment: Several analysts turned more bullish, including a Freedom Capital upgrade to strong-buy and price-target increases, reinforcing the view that the stock still has room to run. Zacks.com
• Neutral Sentiment: Chairman John Boynton sold about $1.4 million of Nebius shares, a routine insider transaction that may draw attention but does not by itself change the company’s operating outlook. Nebius Chairman Sells Company Shares Worth $1.4 Million. Here's a Closer Look at the Transaction.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently bought and sold shares of the business. State Street Corp increased its holdings in shares of Nebius Group by 2,391.3% in the 4th quarter. State Street Corp now owns 3,219,326 shares of the company's stock valued at $269,474,000 after purchasing an additional 3,090,103 shares in the last quarter. Capital Research Global Investors acquired a new stake in shares of Nebius Group during the 4th quarter valued at approximately $231,635,000. Accel Leaders 3 Associates L.P. acquired a new stake in shares of Nebius Group during the 4th quarter valued at approximately $188,496,000. Qube Research & Technologies Ltd purchased a new stake in shares of Nebius Group during the 3rd quarter worth approximately $238,511,000. Finally, Orbis Allan Gray Ltd boosted its stake in shares of 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 in the last quarter. Institutional investors and hedge funds own 21.90% of the company's stock.

Nebius Group Trading Up 18.8%

The firm has a market cap of $54.89 billion, a price-to-earnings ratio of 69.97 and a beta of 4.10. 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 business has a fifty day moving average of $227.96 and a two-hundred day moving average of $154.07.

Nebius Group (NASDAQ:NBIS - Get Free Report) last released its quarterly earnings data on Thursday, May 14th. The company reported ($0.23) earnings per share for the quarter, beating the consensus estimate of ($0.81) by $0.58. The firm had revenue of $399.00 million during the quarter, compared to the consensus estimate of $375.13 million. Nebius Group had a negative return on equity of 9.11% and a net margin of 95.27%.The firm's revenue was up 684.0% compared to the same quarter last year. As a group, equities analysts expect that Nebius Group N.V. will post -1.91 earnings per share for the current fiscal year.

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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