Nebius Group (NASDAQ:NBIS) Stock Rating Upgraded by Freedom Capital

Key Points

• Freedom Capital upgraded Nebius Group from hold to strong-buy, adding to a generally positive analyst backdrop for the stock.
• The company reported better-than-expected quarterly results, including EPS of -$0.23 versus estimates of -$0.81 and revenue of $399 million, while revenue jumped 684% year over year.
• Despite the upbeat analyst calls, insider selling has been significant, with executives recently selling large blocks of shares and insiders offloading 668,405 shares worth about $140.4 million over the last three months.

Nebius Group (NASDAQ:NBIS - Get Free Report) was upgraded by equities research analysts at Freedom Capital from a "hold" rating to a "strong-buy" rating in a research note issued on Monday,Zacks.com reports.

A number of other brokerages have also issued reports on NBIS. Wall Street Zen upgraded shares of Nebius Group from a "strong sell" rating to a "sell" rating in a report on Saturday, May 16th. Wolfe Research started coverage on shares of Nebius Group in a report on Thursday, April 16th. They set a "peer perform" rating on the stock. Weiss Ratings raised shares of Nebius Group from a "hold (c-)" rating to a "hold (c)" rating in a research note on Wednesday, May 20th. Northland Securities raised their target price on Nebius Group from $248.00 to $410.00 and gave the stock an "outperform" rating in a research report on Monday. Finally, DA Davidson lowered Nebius Group from a "buy" rating to a "neutral" rating and upped their price target for the company from $200.00 to $250.00 in a research report on Monday, May 18th. Two investment analysts have rated the stock with a Strong Buy rating, nine have issued a Buy rating and five have assigned a Hold rating to the company's stock. According to data from MarketBeat, the company currently has an average rating of "Moderate Buy" and an average price target of $219.83.

Nebius Group Trading Up 2.8%

Shares of Nebius Group stock opened at $182.62 on Monday. The firm has a market capitalization of $46.21 billion, a PE ratio of 58.91 and a beta of 4.10. The company has a current ratio of 8.33, a quick ratio of 8.33 and a debt-to-equity ratio of 1.16. The firm's 50 day moving average is $227.96 and its 200 day moving average is $154.07. Nebius Group has a 1 year low of $49.00 and a 1 year high of $299.86.

Nebius Group (NASDAQ:NBIS - Get Free Report) last posted its earnings results on Thursday, May 14th. The company reported ($0.23) earnings per share for the quarter, topping analysts' consensus estimates of ($0.81) by $0.58. The firm had revenue of $399.00 million for 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%. The company's revenue was up 684.0% on a year-over-year basis. Equities research analysts forecast that Nebius Group will post -1.91 earnings per share for the current fiscal year.

Insider Activity

In related news, CRO Marc Boroditsky sold 10,776 shares of the business's stock in a transaction dated Tuesday, June 2nd. The stock was sold at an average price of $276.20, for a total value of $2,976,331.20. Following the sale, the executive directly owned 26,886 shares in the company, valued at approximately $7,425,913.20. The trade was a 28.61% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Also, insider Andrey Korolenko sold 500,000 shares of the stock in a transaction dated Wednesday, May 13th. The stock was sold at an average price of $203.24, for a total transaction of $101,620,000.00. Following the transaction, the insider owned 585,209 shares of the company's stock, valued at $118,937,877.16. This represents a 46.07% decrease in their position. The SEC filing for this sale provides additional information. Over the last three months, insiders have sold 668,405 shares of company stock worth $140,422,170.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently bought and sold shares of the business. Allied Private Wealth LLC purchased a new stake in shares of Nebius Group during the second quarter worth $25,000. Parkside Financial Bank & Trust purchased a new stake in Nebius Group during the 4th quarter worth about $25,000. Root Financial Partners LLC purchased a new stake in Nebius Group during the 4th quarter worth about $26,000. SHP Wealth Management bought a new position in Nebius Group in the 4th quarter worth about $26,000. Finally, Sound Income Strategies LLC grew its holdings in Nebius Group by 62.5% during the 1st quarter. Sound Income Strategies LLC now owns 260 shares of the company's stock valued at $27,000 after buying an additional 100 shares in the last quarter. 21.90% of the stock is owned by institutional investors.

More Nebius Group News

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

• Positive Sentiment: Northland Securities raised its price target on Nebius Group to $410 from $248 and kept an Outperform rating, signaling significant upside potential. Benzinga source article
• Positive Sentiment: Freedom Capital upgraded Nebius from Hold to Buy and raised its target to $200 from $159, saying much of the risk has already been priced in. Stocktwits source article
• Positive Sentiment: Zacks added NBIS to its Rank #1 (Strong Buy) momentum list, which may attract additional momentum-driven buyers. Zacks source article
• Neutral Sentiment: Analysts and commentators are debating Nebius versus other AI growth names and whether the recent drop makes the stock more attractive, reflecting a broader re-rating rather than a new fundamental catalyst. Zacks source article
• Neutral Sentiment: Some articles frame Nebius as a potential “buy-the-dip” opportunity after a more than 40% decline, but they also note ongoing cash burn and financing needs as the company scales its AI cloud infrastructure. Seeking Alpha source article

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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