Nebius Group (NASDAQ:NBIS) Shares Down 6.7% Following Analyst Downgrade

Shares of Nebius Group N.V. (NASDAQ:NBIS) dropped 6.7% on Wednesday after Citigroup lowered their price target on the stock from $324.00 to $265.00. Citigroup currently has a buy rating on the stock. Nebius Group traded as low as $140.02 and last traded at $141.52. Approximately 22,569,650 shares changed hands during trading, an increase of 24% from the average session volume of 18,162,902 shares. The stock had previously closed at $151.64.

Several other brokerages have also weighed in on NBIS. BNP Paribas Exane raised shares of Nebius Group from a “neutral” rating to an “outperform” rating and increased their target price for the stock from $260.00 to $399.00 in a research note on Thursday, September 24th. 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. Rosenblatt Securities assumed coverage on Nebius Group in a research report on Thursday, October 8th. They set a “buy” rating and a $304.00 target price on the stock. Freedom Capital upgraded shares of Nebius Group from a “hold” rating to a “strong-buy” rating in a research note on Monday, July 20th. Finally, Rothschild & Co Redburn began coverage on Nebius Group in a research note on Monday, September 21st. They issued a “sell” rating and a $84.00 price objective for the company. Four research analysts have rated the stock with a Strong Buy rating, twelve have assigned a Buy rating, four have given a Hold rating and two have issued a Sell rating to the company. According to data from MarketBeat, the company currently has a consensus rating of “Moderate Buy” and an average price target of $239.56.

Insider Activity

In other news, CRO Marc Boroditsky sold 7,000 shares of the business’s stock in a transaction that occurred on Monday, October 12th. The stock was sold at an average price of $211.23, for a total transaction of $1,478,610.00. Following the sale, the executive owned 7,000 shares of the company’s stock, valued at $1,478,610. The trade was a 50.00% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Wilson Boynton sold 333 shares of the firm’s stock in a transaction that occurred on Thursday, October 29th. The shares were sold at an average price of $173.07, for a total value of $57,632.31. Following the completion of the transaction, the director directly owned 403,189 shares of the company’s stock, valued at $69,779,920.23. The trade was a 0.08% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last three months, insiders purchased 1,718 shares of company stock worth $280,207 and sold 158,823 shares worth $38,168,832.

Nebius Group News Summary

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

• Positive Sentiment: Nebius introduced live GPU spot pricing, capacity-reservation auctions and rebates for committed usage, while expanding grants and founder support for European AI startups. These efforts could improve customer visibility and help attract AI developers. Article: Nebius Group Unveils Live GPU Pricing And Builder Grants In Europe
• Neutral Sentiment: A director’s reported sale of 333 shares was made under a pre-arranged Rule 10b5-1 plan and reduced his holdings by just 0.08%, making it a limited signal about the company’s outlook. Article: Nebius Group Director Sells Shares
• Negative Sentiment: Democratic election victories in Texas have raised investor concerns about tighter oversight or a possible moratorium on data-center development. Texas represents a significant share of planned U.S. data-center power capacity, so restrictions could complicate industry expansion. The concern weighed on Nebius and other AI infrastructure stocks. Article: Texas Election and Planned Data Center Power
• Negative Sentiment: Investors are also questioning whether Nebius can deliver on its ambitious $9 billion annual recurring revenue goal. Rapid capacity expansion requires substantial investment, successful delivery and continued access to financing, raising execution and funding risks. Article: Nebius’s $9 Billion ARR Goal

Institutional Inflows and Outflows

Institutional investors have recently modified their holdings of the stock. BlackRock Inc. raised its stake in Nebius Group by 16.0% during the second quarter. BlackRock Inc. now owns 11,531,270 shares of the company’s stock valued at $3,184,591,000 after buying an additional 1,593,684 shares in the last quarter. Situational Awareness LP bought a new position in shares of Nebius Group in the 2nd quarter worth about $1,232,895,000. State Street Corp boosted its holdings in shares of Nebius Group by 16.2% in the 2nd 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 during the period. Jennison Associates LLC raised its stake in Nebius Group by 134.3% during the second quarter. Jennison Associates LLC now owns 3,983,899 shares of the company’s stock worth $1,100,233,000 after acquiring an additional 2,283,676 shares during the period. Finally, Accel Leaders 4 Associates L.P. bought a new position in shares of Nebius Group during the second quarter valued at approximately $1,012,097,322. 21.90% of the stock is currently owned by institutional investors and hedge funds.

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 company has a fifty day moving average price of $206.96 and a 200 day moving average price of $177.30. The company has a market capitalization of $35.81 billion, a P/E ratio of -4,715.76 and a beta of 4.63.

Nebius Group (NASDAQ:NBIS) last released its quarterly earnings data 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 business had revenue of $582.30 million during the quarter, compared to analyst estimates of $567.91 million. Nebius Group had a negative return on equity of 6.03% and a net margin of 4.55%. The business’s revenue for the quarter was up 454% compared to the same quarter last year. During the same quarter in the previous year, the firm posted $2.38 EPS. On average, sell-side analysts forecast that Nebius Group N.V. will post -3.19 EPS for the current fiscal year.

About Nebius Group

Nebius Group N.V. is a technology company focused on providing cloud infrastructure and services for artificial intelligence and machine learning applications. Through its Nebius AI division, the company offers access to high-performance computing, graphics processing units (GPUs), storage, networking, and related tools designed to help businesses and developers train, deploy, and operate AI models.

The company also operates or supports other technology businesses, including Toloka, an AI data and evaluation platform; TripleTen, an online education provider focused on technology careers; and Avride, a developer of autonomous driving and delivery technologies.