Wall Street Zen Downgrades Nebius Group (NASDAQ:NBIS) to Strong Sell

Nebius Group (NASDAQ:NBIS) was downgraded by stock analysts at Wall Street Zen from a “sell” rating to a “strong sell” rating in a research report issued to clients and investors on Saturday.

A number of other equities research analysts have also recently weighed in on NBIS. Piper Sandler initiated coverage on shares of Nebius Group in a research note on Monday, August 3rd. They set a “neutral” rating and a $224.00 price objective on the stock. Robert W. Baird initiated coverage on shares of Nebius Group in a research report on Wednesday, July 22nd. They issued an “outperform” rating and a $250.00 target price for the company. Citigroup lowered their target price on shares of Nebius Group from $287.00 to $278.00 and set a “buy” rating on the stock in a research note on Wednesday, August 5th. DA Davidson downgraded shares of Nebius Group from a “buy” rating to a “neutral” rating and boosted their price target for the stock from $200.00 to $250.00 in a research report on Monday, May 18th. Finally, Citizens Jmp upped their price target on shares of Nebius Group from $175.00 to $270.00 and gave the stock a “market outperform” rating in a research note on Thursday, May 14th. Two equities research analysts have rated the stock with a Strong Buy rating, nine have assigned a Buy rating and seven have given a Hold rating to the company. Based on data from MarketBeat, Nebius Group presently has a consensus rating of “Moderate Buy” and an average target price of $221.64.

Nebius Group Stock Performance

Shares of NBIS stock opened at $187.97 on Friday. The company has a debt-to-equity ratio of 1.16, a quick ratio of 8.33 and a current ratio of 8.33. Nebius Group has a one year low of $62.01 and a one year high of $299.86. The company’s 50-day simple moving average is $224.43 and its 200-day simple moving average is $163.82. The stock has a market capitalization of $47.56 billion, a price-to-earnings ratio of 60.64 and a beta of 4.23.

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

Insider Transactions at Nebius Group

In other news, CFO Sanchez Maria Del Dado Alonso sold 1,509 shares of Nebius Group stock in a transaction dated Tuesday, June 2nd. The stock was sold at an average price of $276.20, for a total transaction of $416,785.80. Following the completion of the sale, the chief financial officer directly owned 12,672 shares in the company, valued at $3,500,006.40. The trade was a 10.64% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Also, insider Andrey Korolenko sold 33,871 shares of the business’s stock in a transaction that occurred on Wednesday, July 1st. The stock was sold at an average price of $235.45, for a total transaction of $7,974,926.95. Following the completion of the sale, the insider directly owned 551,338 shares of the company’s stock, valued at $129,812,532.10. This represents a 5.79% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last 90 days, insiders sold 651,704 shares of company stock worth $137,422,230.

Institutional Investors Weigh In On Nebius Group

Institutional investors and hedge funds have recently modified their holdings of the business. Orbis Allan Gray Ltd increased its position in Nebius Group by 12.4% during the second quarter. Orbis Allan Gray Ltd now owns 17,651,930 shares of the company’s stock worth $976,681,000 after buying an additional 1,949,708 shares during the last quarter. BlackRock Inc. lifted its position in shares of 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 buying an additional 1,593,684 shares during the last quarter. Jennison Associates LLC lifted its position 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 worth $1,100,233,000 after buying an additional 2,283,676 shares during the last quarter. Morgan Stanley boosted its stake in shares of Nebius Group by 35.2% during the 4th quarter. Morgan Stanley now owns 3,704,659 shares of the company’s stock worth $310,099,000 after acquiring an additional 964,984 shares in the last quarter. Finally, Clear Street Group Inc. boosted its stake in shares of Nebius Group by 95.0% during the 4th quarter. Clear Street Group Inc. now owns 3,511,656 shares of the company’s stock worth $293,943,000 after acquiring an additional 1,710,924 shares in the last quarter. Institutional investors and hedge funds own 21.90% of the company’s stock.

Nebius Group News Roundup

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

• Positive Sentiment: Citigroup assigned Nebius a new $278 price target, while the broader analyst consensus remains “Moderate Buy,” indicating that some Wall Street analysts still see substantial upside. Nebius Given New $278 Price Target at Citigroup Nebius Receives Moderate Buy Recommendation
• Positive Sentiment: Investor interest remains supported by Nebius’ AI data-center expansion and strong underlying demand. The company’s most recent quarterly results exceeded revenue and EPS expectations, although the upcoming report will be important in determining whether capacity investments are translating into profitable growth.
• Neutral Sentiment: Options-market positioning implies heightened volatility around next week’s earnings announcement. Investors are watching revenue growth, data-center deployment costs, capital spending and the pace at which new capacity generates sales. Nebius Stock and Options Market Ahead of Earnings
• Negative Sentiment: Famed investor Michael Burry disclosed a short position in Nebius, arguing that AI-related companies look overvalued and vulnerable. His comments have intensified scrutiny of Nebius’ premium valuation, debt-funded growth and data-center plans. Michael Burry Says He Is Shorting Nebius
• Negative Sentiment: Analyst downgrading and profit-taking have added to the selling pressure after the shares’ substantial advance over the past year. A Nebius director also sold approximately $1.5 million of stock, a relatively small disposal compared with his remaining holdings but another potential sentiment headwind. Nebius Shares Following Analyst Downgrade Nebius Director Stock Sale

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.