Nebius Group (NASDAQ:NBIS) Stock Falls 2.3% - Should You Sell?

Key Points

• Nebius shares fell 2.3% to $231.88, while trading volume was 28% below the average. The stock remains above its 50-day and 200-day moving averages.
• Analyst sentiment is broadly positive, with a consensus “Moderate Buy” rating and an average price target of $241.80; several firms recently raised targets as high as $410.
• The company beat quarterly expectations, reporting a loss of $0.12 per share versus the expected $0.67 loss and revenue of $582.3 million, up 454% year over year. However, insiders sold $43.6 million of stock during the last quarter, a potential cautionary signal.

Shares of Nebius Group N.V. (NASDAQ:NBIS - Get Free Report) fell 2.3% on Monday. The stock traded as low as $228.38 and last traded at $231.88. Approximately 12,683,452 shares traded hands during mid-day trading, a decline of 28% from the average daily volume of 17,734,711 shares. The stock had previously closed at $237.33.

Wall Street Analyst Weigh In

NBIS has been the topic of a number of recent analyst reports. Northland Securities boosted their price objective on Nebius Group from $248.00 to $410.00 and gave the company an "outperform" rating in a research note on Monday, July 20th. BNP Paribas Exane raised Nebius Group from a "neutral" rating to an "outperform" rating and raised their target price for the stock from $260.00 to $399.00 in a research note on Thursday. DA Davidson reiterated a "neutral" rating and issued a $175.00 target price on shares of Nebius Group in a report on Thursday, August 13th. Freedom Capital raised Nebius Group from a "hold" rating to a "strong-buy" rating in a research note on Monday, July 20th. Finally, Robert W. Baird boosted their price target on Nebius Group from $250.00 to $340.00 and gave the company an "outperform" rating in a research note on Thursday, August 13th. Two investment analysts have rated the stock with a Strong Buy rating, ten have assigned a Buy rating, six have issued a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat, the company has an average rating of "Moderate Buy" and a consensus price target of $241.80.

Nebius Group Price Performance

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 market capitalization of $58.67 billion, a price-to-earnings ratio of -7,726.76 and a beta of 4.23. The business's fifty day simple moving average is $216.55 and its 200 day simple moving average is $196.05.

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

Insider Buying and Selling at Nebius Group

In other Nebius Group news, insider Andrey Korolenko sold 33,871 shares of the stock in a transaction that occurred on Wednesday, July 1st. The stock was sold at an average price of $235.45, for a total value of $7,974,926.95. Following the transaction, the insider 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 sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, Director Charles Ryan sold 50,000 shares of the firm's stock in a transaction that occurred on 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 completion of the sale, the director directly owned 272,533 shares of the company's stock, valued at $72,365,687.49. This trade represents a 15.50% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 182,587 shares of company stock worth $43,618,456 in the last quarter.

Hedge Funds Weigh In On Nebius Group

Large investors have recently modified their holdings of the company. BlackRock Inc. increased its stake in Nebius Group by 16.0% during the 2nd quarter. BlackRock Inc. now owns 11,531,270 shares of the company's stock valued at $3,184,591,000 after purchasing an additional 1,593,684 shares in the last quarter. Situational Awareness LP acquired a new position in Nebius Group during the second quarter worth $1,232,895,000. State Street Corp lifted its stake in shares of Nebius Group by 16.2% in the second quarter. State Street Corp now owns 4,069,875 shares of the company's stock valued at $1,123,977,000 after buying an additional 568,415 shares in the last quarter. Jennison Associates LLC lifted 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. acquired a new position in shares of Nebius Group during the second quarter valued at about $1,012,097,322. 21.90% of the stock is currently owned by institutional investors.

About Nebius Group

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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