Nebius Group (NASDAQ:NBIS) Shares Gap Down - Should You Sell?

Key Points

• Nebius Group shares fell 2%, opening at $200.50 versus a prior close of $210.06, while trading volume reached nearly 6.94 million shares.
• Analyst sentiment remains broadly positive but divided: the stock has a “Moderate Buy” consensus rating and an average price target of $245.69, although targets range from $84 to $340.
• The company beat quarterly earnings and revenue expectations, with revenue surging 454% year over year, but it remains unprofitable; insiders have also sold approximately $39.8 million in shares over the past 90 days.

Nebius Group N.V. (NASDAQ:NBIS - Get Free Report) shares gapped down prior to trading on Tuesday. The stock had previously closed at $210.06, but opened at $200.50. Nebius Group shares last traded at $202.1590, with a volume of 6,936,679 shares changing hands.

Analyst Upgrades and Downgrades

A number of research firms have recently issued reports on NBIS. William Blair assumed coverage on Nebius Group in a research report on Wednesday, September 30th. They issued an "outperform" rating for the company. Zacks Research lowered shares of Nebius Group from a "strong-buy" rating to a "hold" rating in a research report on Friday, July 31st. Robert W. Baird increased their price target on shares of Nebius Group from $250.00 to $340.00 and gave the stock an "outperform" rating in a report on Thursday, August 13th. Rothschild & Co Redburn began coverage on Nebius Group in a research note on Monday, September 21st. They set a "sell" rating and a $84.00 price objective on the stock. Finally, Rosenblatt Securities initiated coverage on Nebius Group in a research note on Thursday, October 8th. They issued a "buy" rating and a $304.00 price target on the stock. Three research analysts have rated the stock with a Strong Buy rating, eleven have assigned a Buy rating, six have given a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and an average target price of $245.69.

Nebius Group Stock Down 2.0%

The stock has a market capitalization of $52.06 billion, a P/E ratio of -6,858.68 and a beta of 4.18. The stock's 50 day simple moving average is $225.09 and its 200 day simple moving average is $205.13. The company has a current ratio of 4.03, a quick ratio of 4.03 and a debt-to-equity ratio of 0.82.

Nebius Group (NASDAQ:NBIS - Get Free Report) last posted its earnings results on Thursday, August 13th. The company reported ($0.12) earnings per share (EPS) for the quarter, beating analysts' consensus estimates of ($0.67) by $0.55. The company had revenue of $582.30 million for the quarter, compared to analysts' expectations of $567.91 million. Nebius Group had a negative return on equity of 6.03% and a net margin of 4.55%. The firm's quarterly revenue was up 454% compared to the same quarter last year. During the same period last year, the business posted $2.38 earnings per share. As a group, research analysts predict that Nebius Group N.V. will post -3.48 EPS for the current fiscal year.

Insider Buying and Selling at Nebius Group

In other Nebius Group news, insider Andrey Korolenko sold 29,090 shares of the company's stock in a transaction dated Thursday, October 1st. The shares were sold at an average price of $234.16, for a total transaction of $6,811,714.40. Following the completion of the sale, the insider directly owned 522,248 shares of the company's stock, valued at approximately $122,289,591.68. This represents a 5.28% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, CFO Sanchez Maria Del Dado Alonso sold 470 shares of the 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 sale, the chief financial officer owned 12,202 shares of the company's stock, valued at $2,391,592. The trade was a 3.71% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 166,616 shares of company stock valued at $39,753,038 over the last 90 days.

Hedge Funds Weigh In On Nebius Group

Hedge funds have recently made changes to their positions in the business. BlackRock Inc. boosted its stake in Nebius Group by 16.0% in the second quarter. BlackRock Inc. now owns 11,531,270 shares of the company's stock worth $3,184,591,000 after purchasing an additional 1,593,684 shares in the last quarter. Situational Awareness LP acquired a new stake in shares of Nebius Group in the 2nd quarter valued at about $1,232,895,000. State Street Corp boosted its stake in shares of Nebius Group by 16.2% during the 2nd quarter. State Street Corp now owns 4,069,875 shares of the company's stock worth $1,123,977,000 after buying an additional 568,415 shares during the last quarter. Jennison Associates LLC grew its stake in shares of Nebius Group by 134.3% in the second quarter. Jennison Associates LLC now owns 3,983,899 shares of the company's stock valued at $1,100,233,000 after buying an additional 2,283,676 shares in the last quarter. Finally, Accel Leaders 4 Associates L.P. bought a new stake in shares of Nebius Group in the 2nd quarter valued at about $1,012,097,322. Institutional investors and hedge funds own 21.90% of the company's stock.

About Nebius Group

Nebius Group N.V. is a technology company focused on artificial intelligence infrastructure and related services. Through its Nebius AI business, the company provides cloud-based computing infrastructure designed for developing, training and deploying machine-learning and generative AI applications, including access to accelerated computing, data storage, networking and managed cloud services.

The company also develops tools and services intended to support AI developers and businesses, including data and machine-learning infrastructure.

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