Nebius Group (NASDAQ:NBIS) Trading Down 8.7% - Time to Sell?

Key Points

• Nebius Group shares fell 8.7% on Friday, trading as low as $199.72 after closing at $220.97 the prior day, on volume well below normal. The drop came despite recent bullish attention around the stock.
• Nvidia’s 9.3% ownership disclosure and Nebius’s validation of its first Vera Rubin NVL72 rack in Finland have strengthened sentiment, reinforcing its position as an AI infrastructure player. Analysts have also grown more constructive, with several raising price targets and the consensus rating sitting at Moderate Buy.
• Recent fundamentals remain strong, including first-quarter revenue of $399 million, up 684% year over year and above estimates, though the company still posted a loss. Insider selling by the CEO and CTO was notable, with insiders selling 668,405 shares over the last quarter.

Nebius Group N.V. (NASDAQ:NBIS - Get Free Report) shares traded down 8.7% during mid-day trading on Friday . The stock traded as low as $199.72 and last traded at $201.7160. 3,001,622 shares were traded during trading, a decline of 82% from the average session volume of 16,473,441 shares. The stock had previously closed at $220.97.

Nebius Group News Roundup

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

• Positive Sentiment: Nvidia’s 9.3% ownership disclosure has boosted sentiment by validating Nebius as a key AI infrastructure player and suggesting potential strategic advantages from the relationship. Nebius Group (NBIS) Draws Nvidia Backing, Is It Still Below Fair Value?
• Positive Sentiment: Nebius said it validated the first Vera Rubin NVL72 rack in Finland, highlighting early access to next-generation NVIDIA hardware and strengthening the company’s AI cloud credibility. Nebius validates first Vera Rubin NVL72 rack in Finland days after NVDA stake
• Positive Sentiment: Analysts have become more constructive, with upgrades from Robert W. Baird and Freedom Capital adding to the bullish momentum around the stock. Zacks.com
• Positive Sentiment: Commentary comparing Nebius with IREN framed Nebius as one of the leading neocloud names after strong quarterly results, keeping attention on its growth profile. IREN Vs Nebius: Which Neocloud Should You Buy and Why?

Wall Street Analysts Forecast Growth

Several research analysts have weighed in on the company. Bank of America upped their price target on Nebius Group from $240.00 to $280.00 and gave the stock a "buy" rating in a research note on Monday, June 8th. Weiss Ratings raised shares of Nebius Group from a "hold (c-)" rating to a "hold (c)" rating in a report on Wednesday, May 20th. DA Davidson lowered shares of Nebius Group from a "buy" rating to a "neutral" rating and upped their target price for the stock from $200.00 to $250.00 in a research report on Monday, May 18th. Citigroup raised their target price on shares of Nebius Group from $169.00 to $287.00 and gave the company a "buy" rating in a research note on Friday, May 15th. Finally, Wall Street Zen upgraded shares of Nebius Group from a "strong sell" rating to a "sell" rating in a report on Saturday, May 16th. Three equities research analysts have rated the stock with a Strong Buy rating, nine have assigned a Buy rating and five have issued a Hold rating to the stock. Based on data from MarketBeat, Nebius Group has a consensus rating of "Moderate Buy" and a consensus target price of $222.15.

Nebius Group Price 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 firm has a fifty day simple moving average of $228.94 and a two-hundred day simple moving average of $156.87. The firm has a market cap of $51.29 billion, a PE ratio of 66.45 and a beta of 4.10.

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

Insider Activity at Nebius Group

In other Nebius Group news, CTO Danila Shtan sold 16,937 shares of the stock in a transaction on Wednesday, July 1st. The shares were sold at an average price of $235.45, for a total transaction of $3,987,816.65. Following the completion of the transaction, the chief technology officer owned 274,763 shares in the company, valued at $64,692,948.35. This trade represents a 5.81% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, CEO Arkadiy Volozh sold 46,627 shares of Nebius Group stock in a transaction on Wednesday, July 1st. The stock was sold at an average price of $235.45, for a total transaction of $10,978,327.15. Following the completion of the transaction, the chief executive officer directly owned 821,662 shares of the company's stock, valued at $193,460,317.90. The trade was a 5.37% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 668,405 shares of company stock valued at $140,422,170 over the last quarter.

Institutional Inflows and Outflows

Institutional investors have recently made changes to their positions in the business. Royal Bank of Canada purchased a new position in Nebius Group during the first quarter worth $1,628,000. Millennium Management LLC bought a new stake in shares of Nebius Group during the first quarter valued at approximately $11,563,000. NewEdge Advisors LLC purchased a new stake in shares of Nebius Group in the first quarter valued at approximately $40,000. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC purchased a new stake in shares of Nebius Group in the 1st quarter worth $9,084,000. Finally, Daiwa Securities Group Inc. purchased a new stake in Nebius Group in the second quarter worth about $68,000. Institutional investors 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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