Nebius Group (NASDAQ:NBIS) Shares Climb 15.4% - Still a Buy?

Key Points

• Nebius shares surged 15.4% to $154.69 in Wednesday trading, with volume more than double the average.
• The latest reported quarter beat estimates, with revenue of $582.3 million—up 454% year over year—and a smaller-than-expected loss; analysts also anticipate strong sales growth ahead.
• Analyst sentiment is broadly positive, with a “Moderate Buy” consensus and $246 average price target, but risks include heavy investment and financing needs, execution challenges, and substantial insider selling.

Shares of Nebius Group N.V. (NASDAQ:NBIS - Get Free Report) traded up 15.4% on Wednesday. The stock traded as high as $160.21 and last traded at $154.69. 38,176,253 shares traded hands during mid-day trading, an increase of 107% from the average session volume of 18,449,467 shares. The stock had previously closed at $134.00.

Nebius Group News Roundup

Investors following NBIS have been watching these news items:

• Positive Sentiment: Analysts expect sharp year-over-year sales growth in the upcoming quarter, while Nebius’s major customer contracts could provide revenue visibility if the company can deliver on its expansion plans. Article: NBIS stock jumps on CoreWeave boost
• Neutral Sentiment: The earnings report is likely to determine whether the rebound holds. Investors will be watching compute demand, contract execution, capital spending and financing plans. Article: Nebius Q3 Preview
• Negative Sentiment: NBIS has been under pressure amid a broader neocloud selloff, and concerns about heavy investment needs and funding could weigh on the stock if results or guidance disappoint. Recent reports also show substantially more insider sales than purchases, a potential sentiment headwind. Article: Nebius Group Slides as AI Infrastructure Jitters Persist Ahead of Earnings

Analyst Ratings Changes

Several equities research analysts have issued reports on NBIS shares. Rothschild & Co Redburn started coverage on shares of Nebius Group in a research note on Monday, September 21st. They set a "sell" rating and a $84.00 price target on the stock. Rosenblatt Securities started coverage on shares of Nebius Group in a research report on Thursday, October 8th. They issued a "buy" rating and a $304.00 price objective for the company. BNP Paribas Exane raised shares of Nebius Group from a "neutral" rating to an "outperform" rating and upped their price objective for the company from $260.00 to $399.00 in a research note on Thursday, September 24th. Weiss Ratings lowered shares of Nebius Group from a "sell (d+)" rating to a "sell (d)" rating in a research report on Friday, October 30th. Finally, DA Davidson reaffirmed a "neutral" rating and issued a $175.00 target price on shares of Nebius Group in a research note on Thursday, August 13th. Four investment analysts have rated the stock with a Strong Buy rating, eleven have given a Buy rating, four have given a Hold rating and two have assigned a Sell rating to the stock. Based on data from MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and an average price target of $246.00.

Nebius Group Stock Performance

The stock has a market cap of $39.14 billion, a PE ratio of -5,154.62 and a beta of 4.63. The company has a debt-to-equity ratio of 0.82, a current ratio of 4.03 and a quick ratio of 4.03. The stock has a 50-day simple moving average of $198.90 and a 200-day simple moving average of $178.10.

Nebius Group (NASDAQ:NBIS - Get Free Report) last released its quarterly earnings data on Thursday, August 13th. The company reported ($0.12) EPS for the quarter, topping analysts' consensus estimates of ($0.67) by $0.55. Nebius Group had a negative return on equity of 6.03% and a net margin of 4.55%. The company had revenue of $582.30 million for the quarter, compared to the consensus estimate of $567.91 million. During the same period last year, the business posted $2.38 EPS. The company's quarterly revenue was up 454% compared to the same quarter last year. Equities analysts predict that Nebius Group N.V. will post -3.19 earnings per share for the current fiscal year.

Insider Transactions at Nebius Group

In related news, Director Wilson Boynton sold 333 shares of Nebius Group stock in a transaction on Thursday, October 29th. The shares were sold at an average price of $173.07, for a total transaction of $57,632.31. Following the transaction, the director owned 403,189 shares in the company, valued at approximately $69,779,920.23. The trade was a 0.08% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CRO Marc Boroditsky sold 7,000 shares of the business's stock in a transaction dated Monday, October 12th. The stock was sold at an average price of $211.23, for a total value of $1,478,610.00. Following the transaction, the executive owned 7,000 shares in the company, valued at approximately $1,478,610. This represents a 50.00% 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. Over the last 90 days, insiders acquired 1,718 shares of company stock valued at $280,207 and sold 158,823 shares valued at $38,168,832.

Hedge Funds Weigh In On Nebius Group

Institutional investors have recently made changes to their positions in the business. Confluence Investment Management LLC grew its position in shares of 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 buying an additional 48 shares in the last quarter. Eastern Bank increased its stake in shares of Nebius Group by 66.3% in the third quarter. Eastern Bank now owns 158 shares of the company's stock worth $37,000 after buying an additional 63 shares during the last quarter. Hilton Head Capital Partners LLC raised its holdings in Nebius Group by 56.0% in the third quarter. Hilton Head Capital Partners LLC now owns 195 shares of the company's stock valued at $46,000 after acquiring an additional 70 shares in the last quarter. Jasper Ridge Partners L.P. raised its holdings in Nebius Group by 0.5% in the second quarter. Jasper Ridge Partners L.P. now owns 16,132 shares of the company's stock valued at $4,455,000 after acquiring an additional 74 shares in the last quarter. Finally, Ancora Advisors LLC boosted its stake in Nebius Group by 18.8% during the 2nd quarter. Ancora Advisors LLC now owns 475 shares of the company's stock valued at $131,000 after acquiring an additional 75 shares during the last quarter. 21.90% of the stock is owned by institutional investors and hedge funds.

About Nebius Group

Nebius Group is a technology company focused on building infrastructure for artificial intelligence. Its core business, Nebius, offers cloud computing services and access to accelerated computing resources designed to help developers and organizations train and run AI models. The company also has businesses in areas including data services for AI, autonomous mobility and online education. Based in Amsterdam, Nebius serves customers internationally and is developing data center and computing capacity to support its AI cloud services.

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