Nebius Group (NASDAQ:NBIS) Shares Gap Down - Here's What Happened

Key Points

• Nebius Group shares fell 4.1%, opening at $211.96 versus the prior close of $218.48 and last trading near $210.35.
• Analyst sentiment remains positive overall, with a consensus “Moderate Buy” rating and an average price target of $226.00, despite targets ranging from $175 to $280.
• Nebius exceeded quarterly expectations, reporting an adjusted loss of $0.12 per share versus the expected $0.67 loss and revenue of $582.3 million, up 454% year over year. Insiders have sold 186,506 shares worth approximately $46.3 million over the past 90 days.

Nebius Group N.V. (NASDAQ:NBIS - Get Free Report)'s share price gapped down before the market opened on Friday . The stock had previously closed at $218.48, but opened at $211.96. Nebius Group shares last traded at $210.35, with a volume of 2,185,537 shares traded.

Analyst Upgrades and Downgrades

A number of research firms recently weighed in on NBIS. Citizens Jmp boosted their target price on Nebius Group from $175.00 to $270.00 and gave the stock a "market outperform" rating in a report on Thursday, May 14th. BNP Paribas Exane assumed coverage on Nebius Group in a report on Tuesday, June 2nd. They set a "neutral" rating and a $255.00 price target for the company. Bank of America lifted their price objective on shares of Nebius Group from $240.00 to $280.00 and gave the stock a "buy" rating in a research report on Monday, June 8th. Wall Street Zen upgraded shares of Nebius Group from a "strong sell" rating to a "sell" rating in a report on Sunday, August 16th. Finally, DA Davidson reissued a "neutral" rating and issued a $175.00 price objective on shares of Nebius Group in a research report on Thursday, August 13th. One research analyst has rated the stock with a Strong Buy rating, ten have issued a Buy rating and seven have issued a Hold rating to the company's stock. According to data from MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and an average price target of $226.00.

Nebius Group Stock Down 4.1%

The company has a market cap of $53.03 billion, a price-to-earnings ratio of -6,984.34 and a beta of 4.23. 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 firm has a 50-day moving average price of $219.50 and a 200 day moving average price of $177.45.

Nebius Group (NASDAQ:NBIS - Get Free Report) last released its quarterly earnings results on Thursday, August 13th. The company reported ($0.12) earnings per share for the quarter, topping the consensus estimate 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 business had revenue of $582.30 million during the quarter, compared to analysts' expectations of $567.91 million. During the same period last year, the firm posted $2.38 EPS. The firm's revenue for the quarter was up 454% compared to the same quarter last year. Sell-side analysts predict that Nebius Group N.V. will post -3.76 EPS for the current year.

Insider Activity at Nebius Group

In related news, Director Charles E. Ryan sold 50,000 shares of the company's stock in a transaction dated Friday, August 14th. The shares were sold at an average price of $265.53, for a total value of $13,276,500.00. Following the transaction, the director directly owned 272,533 shares in the company, valued at approximately $72,365,687.49. This represents a 15.50% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Andrey Korolenko sold 33,871 shares of the firm's stock in a transaction dated Wednesday, July 1st. The stock was sold at an average price of $235.45, for a total transaction of $7,974,926.95. Following the transaction, the insider directly owned 551,338 shares in the company, valued at approximately $129,812,532.10. This represents a 5.79% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last ninety days, insiders have sold 186,506 shares of company stock valued at $46,264,387.

Institutional Inflows and Outflows

Several hedge funds have recently made changes to their positions in NBIS. Lombard Odier Asset Management Switzerland SA acquired a new position in Nebius Group in the first quarter valued at about $1,087,000. Geode Capital Management LLC grew its stake in Nebius Group by 1,095.7% during the fourth quarter. Geode Capital Management LLC now owns 2,046,799 shares of the company's stock worth $169,840,000 after buying an additional 1,875,612 shares in the last quarter. HB Wealth Management LLC bought a new position in Nebius Group in the 1st quarter valued at about $735,000. Amundi increased its holdings in Nebius Group by 10.6% in the 1st quarter. Amundi now owns 1,343,954 shares of the company's stock valued at $139,449,000 after buying an additional 128,380 shares during the period. Finally, State of New Jersey Common Pension Fund D acquired a new position in shares of Nebius Group in the 4th quarter valued at approximately $8,111,000. 21.90% of the stock is owned by 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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