Nebius Group (NASDAQ:NBIS) Trading Down 12.7% - Here's Why

Key Points

• Nebius Group shares fell 12.7% to $148.22, with trading volume reaching 38.5 million shares—128% above the average session volume.
• Despite the selloff, analysts maintain a generally positive outlook: the stock has a consensus “Moderate Buy” rating and an average price target of $222.15, well above its current price.
• The company reported quarterly revenue of $399 million, up 684% year over year, and beat analysts’ loss-per-share estimate. However, insiders sold 668,405 shares worth approximately $140.4 million over the past three months.

Nebius Group N.V. (NASDAQ:NBIS - Get Free Report) shares dropped 12.7% on Wednesday . The stock traded as low as $145.80 and last traded at $148.22. 38,549,205 shares traded hands during mid-day trading, an increase of 128% from the average session volume of 16,886,768 shares. The stock had previously closed at $169.69.

Analyst Ratings Changes

NBIS has been the topic of a number of recent analyst reports. Wall Street Zen raised Nebius Group from a "strong sell" rating to a "sell" rating in a report on Saturday, May 16th. Wolfe Research assumed coverage on Nebius Group in a research note on Thursday, April 16th. They set a "peer perform" rating for the company. Citigroup increased their price target on Nebius Group from $169.00 to $287.00 and gave the stock a "buy" rating in a research report on Friday, May 15th. Robert W. Baird initiated coverage on Nebius Group in a research report on Wednesday, July 22nd. They set an "outperform" rating and a $250.00 price objective on the stock. Finally, Citizens Jmp upped their price target on shares of Nebius Group from $175.00 to $270.00 and gave the company a "market outperform" rating in a research note on Thursday, May 14th. Three equities research analysts have rated the stock with a Strong Buy rating, nine have given a Buy rating and five have assigned a Hold rating to the stock. According to data from MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and a consensus price target of $222.15.

Nebius Group Price Performance

The company has a quick ratio of 8.33, a current ratio of 8.33 and a debt-to-equity ratio of 1.16. The stock's 50-day moving average price is $227.49 and its 200 day moving average price is $158.68. The firm has a market capitalization of $37.50 billion, a price-to-earnings ratio of 47.81 and a beta of 4.10.

Nebius Group (NASDAQ:NBIS - Get Free Report) last announced its quarterly earnings results 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. Nebius Group had a net margin of 95.27% and a negative return on equity of 9.11%. The firm had revenue of $399.00 million for the quarter, compared to analysts' expectations of $375.13 million. The company's revenue was up 684.0% on a year-over-year basis. Equities research analysts expect that Nebius Group N.V. will post -1.91 earnings per share for the current fiscal year.

Insiders Place Their Bets

In other news, insider Andrey Korolenko sold 33,871 shares of Nebius Group 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 transaction, the insider directly owned 551,338 shares of the company's stock, valued at $129,812,532.10. The trade was a 5.79% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available through this link. Also, CEO Arkadiy Volozh sold 46,627 shares of the business's stock in a transaction dated Wednesday, July 1st. The shares were sold at an average price of $235.45, for a total value of $10,978,327.15. Following the completion of the transaction, the chief executive officer owned 821,662 shares in the company, valued at $193,460,317.90. This trade represents a 5.37% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last three months, insiders sold 668,405 shares of company stock worth $140,422,170.

Hedge Funds Weigh In On Nebius Group

Hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Royal Bank of Canada acquired a new stake in shares of Nebius Group during the 1st quarter worth about $1,628,000. Millennium Management LLC purchased a new stake in shares of Nebius Group during the 1st quarter worth about $11,563,000. NewEdge Advisors LLC acquired a new stake in shares of Nebius Group in the first quarter worth $40,000. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC acquired a new stake in Nebius Group in the 1st quarter valued at $9,084,000. Finally, Daiwa Securities Group Inc. purchased a new stake in shares of Nebius Group during the 2nd quarter valued at about $68,000. 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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