Nebius Group (NASDAQ:NBIS) Trading Down 9.1% on Insider Selling

Key Points

• Nebius Group shares fell 9.1% after insider selling, with trading volume rising above average as the stock slid from a prior close of $219.94 to as low as $190.08.
• Insider Andrey Korolenko sold 500,000 shares for about $101.6 million, while Director Elena Bunina sold 10,894 shares under a pre-arranged Rule 10b5-1 plan, adding to near-term selling pressure.
• Despite the pullback, analysts remain largely constructive: Citigroup and Citizens JMP both raised price targets sharply, and Nebius recently beat quarterly earnings and revenue expectations with revenue up 684% year over year.

Shares of Nebius Group N.V. (NASDAQ:NBIS - Get Free Report) traded down 9.1% during trading on Monday following insider selling activity. The stock traded as low as $190.08 and last traded at $199.86. 20,966,692 shares traded hands during trading, an increase of 32% from the average session volume of 15,929,315 shares. The stock had previously closed at $219.94.

Specifically, insider Andrey Korolenko sold 500,000 shares of the firm's stock in a transaction that occurred on Wednesday, May 13th. The shares were 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 in the company, valued at $118,937,877.16. This trade represents a 46.07% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, Director Elena Bunina sold 10,894 shares of Nebius Group stock in a transaction that occurred on Wednesday, May 13th. The stock was sold at an average price of $206.87, for a total transaction of $2,253,641.78. Following the completion of the transaction, the director owned 10,772 shares in the company, valued at approximately $2,228,403.64. This trade represents a 50.28% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Wall Street Analysts Forecast Growth

Several research analysts have issued reports on the stock. Citigroup lifted their price target on shares of Nebius Group from $169.00 to $287.00 and gave the stock a "buy" rating in a research report on Friday. Wall Street Zen upgraded shares of Nebius Group from a "strong sell" rating to a "sell" rating in a research report on Saturday. Wolfe Research assumed coverage on shares of Nebius Group in a research report on Thursday, April 16th. They issued a "peer perform" rating on the stock. Cantor Fitzgerald assumed coverage on shares of Nebius Group in a research report on Thursday, April 9th. They issued an "overweight" rating and a $129.00 price target on the stock. Finally, Citizens Jmp lifted their price target on shares of Nebius Group from $175.00 to $270.00 and gave the stock a "market outperform" rating in a research report on Thursday. One equities research analyst has rated the stock with a Strong Buy rating, nine have issued a Buy rating and five have given a Hold rating to the stock. According to MarketBeat, the stock currently has an average rating of "Moderate Buy" and an average target price of $182.75.

Key Stories Impacting Nebius Group

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

• Positive Sentiment: Nebius is expanding its AI infrastructure footprint, securing up to 1.2 GW of power and land in Pennsylvania for a second U.S. gigawatt-scale AI site, reinforcing its growth story. Nebius Adds Second US Gigawatt AI Site As Valuation Stays Elevated
• Positive Sentiment: The company continues to draw favorable attention as an AI cloud winner, with commentary highlighting its rapid growth and positioning alongside other Nvidia-backed neocloud names. These 2 Nvidia-Backed Stocks Look Like Genius Investments
• Neutral Sentiment: DA Davidson downgraded Nebius from buy to neutral, but raised its price target to $250, suggesting continued upside even as the firm becomes more cautious. Nebius Group was downgraded by DA Davidson from buy to neutral
• Neutral Sentiment: Some analysts remain constructive after Q1 results, arguing Nebius has a strong AI moat and is executing on a major infrastructure buildout, though the investment case hinges on hitting very large capex goals. Nebius: Massive AI Moat Meets A $25B CapEx Test
• Negative Sentiment: A bearish Seeking Alpha note warned that the stock may be trading in “peak AI euphoria,” arguing valuation has run far ahead of fundamentals and leaves little room for execution misses. Nebius: You're Holding Into Peak Euphoria
• Negative Sentiment: Investor concern is also rising around Nebius CEO Arkady Volozh’s aggressive capex plans, with commentary focusing on the company’s willingness to spend heavily to build out capacity. Nebius CEO doubles down on capex spending
• Negative Sentiment: Recent insider share sales, including transactions by Elena Bunina and Andrey Korolenko, may add to near-term selling pressure. Elena Bunina Sells 10,894 Shares of Nebius Group NASDAQ: NBIS Stock

Nebius Group Stock Performance

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 stock has a market capitalization of $50.57 billion, a PE ratio of 64.47 and a beta of 4.03. The firm's 50-day simple moving average is $138.08 and its two-hundred day simple moving average is $110.98.

Nebius Group (NASDAQ:NBIS - Get Free Report) last posted its quarterly earnings data on Thursday, May 14th. The company reported ($0.23) earnings per share for the quarter, topping the consensus estimate of ($0.77) by $0.54. 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. Nebius Group's revenue was up 684.0% on a year-over-year basis. On average, equities research analysts expect that Nebius Group N.V. will post -2.33 earnings per share for the current fiscal year.

Hedge Funds Weigh In On Nebius Group

Institutional investors and hedge funds have recently added to or reduced their stakes in the company. Parkside Financial Bank & Trust acquired a new stake in shares of Nebius Group during the 4th quarter valued at $25,000. Root Financial Partners LLC acquired a new stake in shares of Nebius Group during the 4th quarter valued at $26,000. SHP Wealth Management acquired a new stake in shares of Nebius Group during the 4th quarter valued at $26,000. Sound Income Strategies LLC boosted its stake in shares of 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 during the period. Finally, Blue Trust Inc. boosted its stake in shares of Nebius Group by 73.8% during the 4th quarter. Blue Trust Inc. now owns 332 shares of the company's stock valued at $28,000 after buying an additional 141 shares during the period. 21.90% of the stock is currently owned by hedge funds and other institutional investors.

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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