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

Key Points

• Nebius Group shares gapped down from a prior close of $224.55 to open at $204.98, later trading near $215 on volume of roughly 4.1 million shares.
• Analyst sentiment remains broadly positive: the stock has a “Moderate Buy” consensus rating and an average price target of $234.60, though Weiss Ratings downgraded it to “sell.”
• Recent results exceeded expectations, with quarterly revenue of $582.3 million—up 454% year over year—and an adjusted EPS loss of $0.12 versus the expected $0.67 loss; insiders have nevertheless sold about $37.7 million of stock over the past quarter.

Nebius Group N.V. (NASDAQ:NBIS - Get Free Report) gapped down prior to trading on Monday . The stock had previously closed at $224.55, but opened at $204.98. Nebius Group shares last traded at $215.0490, with a volume of 4,126,104 shares traded.

Wall Street Analysts Forecast Growth

Several research analysts recently issued reports on the stock. Freedom Capital raised shares of Nebius Group from a "hold" rating to a "strong-buy" rating in a research note on Monday, July 20th. Citigroup lifted their price objective on shares of Nebius Group from $278.00 to $324.00 and gave the company a "buy" rating in a report on Friday, August 14th. Truist Financial raised shares of Nebius Group to a "strong-buy" rating in a research report on Thursday. Weiss Ratings lowered shares of Nebius Group from a "hold (c-)" rating to a "sell (d+)" rating in a report on Wednesday. Finally, Robert W. Baird boosted their price objective on Nebius Group from $250.00 to $340.00 and gave the stock an "outperform" rating in a report on Thursday, August 13th. Two equities research analysts have rated the stock with a Strong Buy rating, ten have issued a Buy rating, six have given a Hold rating and one has given a Sell rating to the company. According to MarketBeat.com, Nebius Group currently has an average rating of "Moderate Buy" and an average target price of $234.60.

Nebius Group Price Performance

The stock has a market cap of $53.74 billion, a PE ratio of -7,094.84 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's 50 day moving average price is $211.89 and its two-hundred day moving average price is $186.99.

Nebius Group (NASDAQ:NBIS - Get Free Report) last announced its quarterly earnings results on Thursday, August 13th. The company reported ($0.12) EPS for the quarter, beating analysts' consensus estimates of ($0.67) by $0.55. Nebius Group had a net margin of 4.55% and a negative return on equity of 6.03%. The company had revenue of $582.30 million for the quarter, compared to analysts' expectations of $567.91 million. During the same period in the prior year, the company posted $2.38 EPS. Nebius Group's revenue was up 454% compared to the same quarter last year. On average, research analysts expect that Nebius Group N.V. will post -3.76 earnings per share for the current year.

Insider Activity

In other news, Director John Wilson Iv Boynton sold 5,296 shares of the firm's stock in a transaction on Friday, August 14th. The stock was sold at an average price of $270.99, for a total value of $1,435,163.04. Following the completion of the transaction, the director directly owned 415,844 shares of the company's stock, valued at $112,689,565.56. This trade represents a 1.26% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Sanchez Maria Del Dado Alonso sold 470 shares of Nebius Group stock in a transaction on Tuesday, September 1st. The shares were sold at an average price of $196.00, for a total value of $92,120.00. Following the completion of the transaction, the chief financial officer owned 12,202 shares of the company's stock, valued at approximately $2,391,592. This trade represents a 3.71% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last quarter, insiders have sold 153,201 shares of company stock valued at $37,744,854.

Institutional Inflows and Outflows

Large investors have recently added to or reduced their stakes in the stock. Confluence Investment Management LLC increased its stake 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 valued at $684,000 after purchasing an additional 48 shares in the last quarter. Jasper Ridge Partners L.P. boosted its position in shares of Nebius Group by 0.5% in the 2nd quarter. Jasper Ridge Partners L.P. now owns 16,132 shares of the company's stock worth $4,455,000 after purchasing an additional 74 shares in the last quarter. Ancora Advisors LLC boosted its position in shares of Nebius Group by 18.8% in the 2nd quarter. Ancora Advisors LLC now owns 475 shares of the company's stock worth $131,000 after purchasing an additional 75 shares in the last quarter. N.E.W. Advisory Services LLC grew its stake in shares of Nebius Group by 76.0% in the 2nd quarter. N.E.W. Advisory Services LLC now owns 176 shares of the company's stock worth $49,000 after buying an additional 76 shares during the last quarter. Finally, Empirical Financial Services LLC d.b.a. Empirical Wealth Management grew its stake in shares of 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 worth $309,000 after buying an additional 79 shares during the last quarter. Institutional investors own 21.90% of the company's stock.

Nebius Group Company Profile

Nebius Group N.V. NASDAQ: NBIS is a technology company focused on artificial intelligence infrastructure and related services. Its principal business is Nebius AI, a cloud platform that provides computing, storage, networking and managed infrastructure designed to support the development and deployment of AI applications, including access to accelerated computing resources.

The company also operates or develops businesses in adjacent technology markets. These include Toloka, which provides data and evaluation services for machine-learning systems; TripleTen, an online education platform offering technology-focused training; and Avride, a developer of autonomous driving and delivery technologies.

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