Nebius Group (NASDAQ:NBIS) Trading Down 3% After Analyst Downgrade

Key Points

• Nebius Group shares fell 3% after Citigroup cut its price target from $287 to $278, while maintaining a Buy rating. The stock traded near $219, below the revised target and its $225.74 prior close.
• Analyst sentiment remains broadly positive, with a consensus rating of Moderate Buy and an average price target of $221.64, although ratings range from Strong Buy to Hold.
• Insiders have sold 651,704 shares worth approximately $137.4 million over the past three months, including a 500,000-share sale by insider Andrey Korolenko. Despite the selling, the company reported 684% year-over-year revenue growth in its latest quarter.

Nebius Group N.V. (NASDAQ:NBIS - Get Free Report)'s stock price fell 3% during trading on Wednesday after Citigroup lowered their price target on the stock from $287.00 to $278.00. Citigroup currently has a buy rating on the stock. Nebius Group traded as low as $214.74 and last traded at $218.99. Approximately 15,535,643 shares were traded during mid-day trading, a decline of 10% from the average session volume of 17,215,875 shares. The stock had previously closed at $225.74.

Other equities research analysts have also recently issued research reports about the company. Northland Securities boosted their price objective on Nebius Group from $248.00 to $410.00 and gave the stock an "outperform" rating in a report on Monday, July 20th. Zacks Research cut Nebius Group from a "strong-buy" rating to a "hold" rating in a report on Friday, July 31st. Bank of America boosted their price target on Nebius Group from $240.00 to $280.00 and gave the company a "buy" rating in a research note on Monday, June 8th. BNP Paribas Exane started coverage on Nebius Group in a report on Tuesday, June 2nd. They issued a "neutral" rating and a $255.00 price objective on the stock. Finally, Wolfe Research began coverage on Nebius Group in a research report on Thursday, April 16th. They set a "peer perform" rating on the stock. Two analysts have rated the stock with a Strong Buy rating, nine have given a Buy rating and seven have given a Hold rating to the stock. According to data from MarketBeat, Nebius Group currently has a consensus rating of "Moderate Buy" and an average target price of $221.64.

Insider Activity at Nebius Group

In related news, insider Andrey Korolenko sold 500,000 shares of the stock in a transaction that occurred on 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 sale, 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 ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through the SEC website. Also, CRO Marc Boroditsky sold 10,776 shares of the firm's stock in a transaction on 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 transaction, the executive owned 26,886 shares in the company, valued at approximately $7,425,913.20. This trade represents a 28.61% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last three months, insiders sold 651,704 shares of company stock valued at $137,422,230.

Nebius Group News Summary

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

• Positive Sentiment: Citigroup maintained a Buy rating on Nebius Group while lowering its price target from $287 to $278. The revised target still implies approximately 24% upside from the cited share price, providing continued Wall Street support. Benzinga analyst update
• Positive Sentiment: Nebius appointed Lindsey Irvine as chief marketing officer. Her experience scaling go-to-market operations at Square, Benchling and MuleSoft could support the company’s global expansion and customer acquisition in the competitive AI-cloud market. Nebius appoints Lindsey Irvine as Chief Marketing Officer
• Neutral Sentiment: Investor coverage increasingly frames Nebius as a fast-growing “neocloud” provider with vertically integrated infrastructure, NVIDIA ties and major AI-infrastructure agreements. However, comparisons with CoreWeave highlight Nebius’ smaller scale and less-established contracted-revenue visibility. Better Neocloud Stock: CoreWeave vs. Nebius
• Neutral Sentiment: A recent trading alert identified strong “power inflow,” suggesting bullish order-flow activity from institutional and retail participants, though such technical signals do not change the company’s fundamentals. Nebius Shares Rise After Key Trading Signal
• Negative Sentiment: Analysts expect a decline in upcoming earnings, and Zacks says Nebius lacks the combination of estimate revisions and earnings-surprise momentum typically associated with a likely beat. Rising spending, financing needs and potential margin pressure also weigh on the outlook. Analysts Estimate Nebius Group to Report a Decline in Earnings
• Negative Sentiment: Piper Sandler initiated coverage with a Neutral rating and a $224 price target, while naming rival CoreWeave its preferred AI-cloud investment. That relative downgrade may encourage investors to favor competitors as AI-infrastructure spending accelerates. Piper Sandler Initiates Coverage on Nebius Group

Institutional Inflows and Outflows

Hedge funds have recently modified their holdings of the stock. Confluence Investment Management LLC lifted its position in Nebius Group by 2.0% during the second quarter. Confluence Investment Management LLC now owns 2,475 shares of the company's stock worth $684,000 after purchasing an additional 48 shares during the period. Empirical Financial Services LLC d.b.a. Empirical Wealth Management increased its holdings in Nebius Group by 2.7% in the 1st quarter. Empirical Financial Services LLC d.b.a. Empirical Wealth Management now owns 2,977 shares of the company's stock valued at $309,000 after buying an additional 79 shares during the period. Wealth Alliance LLC raised its position in shares of Nebius Group by 1.6% in the 1st quarter. Wealth Alliance LLC now owns 5,008 shares of the company's stock valued at $520,000 after buying an additional 80 shares in the last quarter. Aspen Grove Capital LLC raised its position in shares of Nebius Group by 3.7% in the 1st quarter. Aspen Grove Capital LLC now owns 2,522 shares of the company's stock valued at $262,000 after buying an additional 89 shares in the last quarter. Finally, Allied Private Wealth LLC bought a new stake in shares of Nebius Group during the 2nd quarter worth approximately $25,000. Institutional investors own 21.90% of the company's stock.

Nebius Group Stock Performance

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 company has a market cap of $55.41 billion, a P/E ratio of 70.64 and a beta of 4.23. The stock's fifty day moving average price is $225.81 and its two-hundred day moving average price is $161.88.

Nebius Group (NASDAQ:NBIS - Get Free Report) last announced its quarterly earnings data on Thursday, May 14th. The company reported ($0.23) earnings per share (EPS) for the quarter, beating analysts' consensus estimates 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 business had revenue of $399.00 million for the quarter, compared to analysts' expectations of $375.13 million. Nebius Group's revenue for the quarter was up 684.0% compared to the same quarter last year. As a group, equities analysts predict that Nebius Group N.V. will post -1.91 earnings per share for the current 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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