Nebius Group (NASDAQ:NBIS) Shares Down 2.1% on Analyst Downgrade

Nebius Group N.V. (NASDAQ:NBIS)’s share price dropped 2.1% during mid-day trading on Monday after DA Davidson lowered their price target on the stock from $250.00 to $175.00. DA Davidson currently has a neutral rating on the stock. Nebius Group traded as low as $183.11 and last traded at $184.11. 15,886,716 shares traded hands during mid-day trading, a decline of 8% from the average session volume of 17,313,877 shares. The stock had previously closed at $187.97.

NBIS has been the subject of several other reports. Bank of America raised their target price on shares of Nebius Group from $240.00 to $280.00 and gave the company a “buy” rating in a research note on Monday, June 8th. Morgan Stanley increased their price objective on Nebius Group from $126.00 to $144.00 and gave the company an “equal weight” rating in a report on Thursday, May 14th. Citizens Jmp raised their price objective on Nebius Group from $175.00 to $270.00 and gave the stock a “market outperform” rating in a research report on Thursday, May 14th. BNP Paribas Exane began coverage on Nebius Group in a research note on Tuesday, June 2nd. They set a “neutral” rating and a $255.00 target price on the stock. Finally, Piper Sandler assumed coverage on Nebius Group in a research report on Monday, August 3rd. They set a “neutral” rating and a $224.00 target price on the stock. Two research analysts have rated the stock with a Strong Buy rating, nine have assigned a Buy rating and seven have assigned a Hold rating to the company. According to data from MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and an average price target of $216.29.

Insider Activity at Nebius Group

In other Nebius Group news, Director John Wilson Iv Boynton sold 5,812 shares of the company’s stock in a transaction that occurred on Monday, June 15th. The shares were sold at an average price of $253.29, for a total transaction of $1,472,121.48. Following the transaction, the director owned 378,665 shares in the company, valued at approximately $95,912,057.85. This represents a 1.51% decrease in their position. The sale was disclosed in a document filed with the SEC, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CTO Danila Shtan sold 16,937 shares of the firm’s stock in a transaction on Wednesday, July 1st. The stock was sold at an average price of $235.45, for a total transaction of $3,987,816.65. Following the completion of the transaction, the chief technology officer directly owned 274,763 shares of the company’s stock, valued at approximately $64,692,948.35. This represents a 5.81% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 651,704 shares of company stock worth $137,422,230 in the last 90 days.

Trending Headlines about Nebius Group

Here are the key news stories impacting Nebius Group this week:

• Positive Sentiment: Demand for AI infrastructure remains a major bullish factor. Nebius reportedly has strong AI contracts, a growing backlog, improved pricing and access to capital, supporting expectations for continued revenue growth. AI Data Centers Are Splitting Winners From Pretenders in Infrastructure Stocks
• Positive Sentiment: The upcoming Q2 report could provide a catalyst if capacity expansion translates into stronger revenue and confirms that pricing gains are keeping pace with demand. Analysts and investors are focusing on the company’s ability to convert its backlog into results. Should You Buy, Hold or Sell Nebius Stock Before Q2 Earnings Release?
• Neutral Sentiment: Sentiment is unusually divided before earnings. The report is viewed as a key test of demand, capacity timing, margins and cash usage, while the stock’s valuation leaves limited room for disappointing execution. Should You Buy, Hold or Sell Nebius Stock Before Q2 Earnings Release?
• Negative Sentiment: Michael Burry’s disclosed short position has intensified selling and raised concerns about Nebius’s valuation, high cash burn and ability to finance rapid expansion. Shares have fallen sharply from their one-year high, increasing volatility ahead of the results. Michael Burry Shorts Nebius Stock
• Negative Sentiment: DA Davidson lowered its price target from $250 to $175 and moved to a neutral rating, implying downside from the reported trading level. The downgrade reflects caution about valuation and execution risk. DA Davidson Price Target Update
• Negative Sentiment: Expansion requires heavy investment, which could pressure near-term margins and profitability even if revenue growth remains strong. Investors are therefore watching capital expenditures, cash burn and the timing of new capacity closely. Nebius Q2 Earnings Preview

Institutional Trading of Nebius Group

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the company. Confluence Investment Management LLC raised its holdings in Nebius Group by 2.0% in the 2nd quarter. Confluence Investment Management LLC now owns 2,475 shares of the company’s stock worth $684,000 after purchasing an additional 48 shares during the period. N.E.W. Advisory Services LLC grew its holdings in Nebius Group by 76.0% in the second quarter. N.E.W. Advisory Services LLC now owns 176 shares of the company’s stock valued at $49,000 after purchasing an additional 76 shares during the period. Empirical Financial Services LLC d.b.a. Empirical Wealth Management grew its holdings in Nebius Group by 2.7% in the first quarter. Empirical Financial Services LLC d.b.a. Empirical Wealth Management now owns 2,977 shares of the company’s stock valued at $309,000 after purchasing an additional 79 shares during the period. Wealth Alliance LLC grew its holdings in Nebius Group by 1.6% in the first quarter. Wealth Alliance LLC now owns 5,008 shares of the company’s stock valued at $520,000 after purchasing an additional 80 shares during the period. Finally, Aspen Grove Capital LLC increased its position in shares of Nebius Group by 3.7% in the first quarter. Aspen Grove Capital LLC now owns 2,522 shares of the company’s stock valued at $262,000 after buying an additional 89 shares in the last quarter. Institutional investors and hedge funds own 21.90% of the company’s stock.

Nebius Group Price Performance

The company has a quick ratio of 8.33, a current ratio of 8.33 and a debt-to-equity ratio of 1.16. The firm has a market capitalization of $46.58 billion, a PE ratio of 59.39 and a beta of 4.23. The stock has a 50-day moving average price of $224.43 and a 200 day moving average price of $163.82.

Nebius Group (NASDAQ:NBIS) last announced its earnings results on Thursday, May 14th. The company reported ($0.23) earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of ($0.81) by $0.58. The firm had revenue of $399.00 million for the quarter, compared to analyst estimates of $375.13 million. Nebius Group had a negative return on equity of 9.11% and a net margin of 95.27%.The company’s revenue for the quarter was up 684.0% compared to the same quarter last year. Equities analysts forecast that Nebius Group N.V. will post -1.57 EPS for the current fiscal year.

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.