Cerebras Systems (NASDAQ:CBRS) Given New $178.00 Price Target at Morgan Stanley

Key Points

• Morgan Stanley cut Cerebras Systems’ price target from $279 to $178 but maintained an “overweight” rating; the new target implies 88.6% upside from the prior close.
• Analyst sentiment remains broadly positive: MarketBeat reports a “Moderate Buy” consensus and an average target of $261.80, despite recent target cuts from Morgan Stanley and Wedbush.
• Cerebras reported quarterly revenue of $209.87 million, up 74.3% year over year, but missed the consensus EPS estimate. Insiders sold about $394.6 million worth of shares over the past 90 days.

Cerebras Systems (NASDAQ:CBRS - Get Free Report) had its price target dropped by investment analysts at Morgan Stanley from $279.00 to $178.00 in a research report issued to clients and investors on Monday, Benzinga reports. The firm presently has an "overweight" rating on the stock. Morgan Stanley's target price would suggest a potential upside of 88.61% from the stock's previous close.

Several other analysts also recently issued reports on the company. Freedom Capital raised Cerebras Systems from a "hold" rating to a "strong-buy" rating in a research note on Friday, October 2nd. Jefferies Financial Group upgraded Cerebras Systems to an "outperform" rating in a research note on Monday, October 5th. Wedbush cut their price objective on shares of Cerebras Systems from $290.00 to $190.00 and set an "outperform" rating for the company in a report on Monday. Rosenblatt Securities reissued a "buy" rating and issued a $300.00 target price on shares of Cerebras Systems in a report on Wednesday, August 19th. Finally, Wall Street Zen upgraded shares of Cerebras Systems from a "sell" rating to a "hold" rating in a research note on Saturday, August 15th. Two research analysts have rated the stock with a Strong Buy rating, ten have given a Buy rating, one has given a Hold rating and one has issued a Sell rating to the company's stock. According to data from MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and a consensus target price of $261.80.

Cerebras Systems Trading Up 5.2%

Shares of CBRS traded up $4.70 during trading hours on Monday, reaching $94.38. 4,066,057 shares of the stock traded hands, compared to its average volume of 7,913,480. The company has a market capitalization of $22.42 billion and a P/E ratio of -1,178.10. The company has a debt-to-equity ratio of 0.02, a quick ratio of 5.80 and a current ratio of 5.82. The company's 50-day simple moving average is $159.28. Cerebras Systems has a 52-week low of $77.84 and a 52-week high of $386.34.

Cerebras Systems (NASDAQ:CBRS - Get Free Report) last issued its quarterly earnings results on Wednesday, August 12th. The company reported ($2.98) earnings per share (EPS) for the quarter, missing analysts' consensus estimates of ($0.21) by ($2.77). The business had revenue of $209.87 million during the quarter. The firm's revenue was up 74.3% on a year-over-year basis. On average, research analysts forecast that Cerebras Systems will post -0.52 EPS for the current year.

Insider Activity

In related news, Director Steven Vassallo sold 50,000 shares of the firm's stock in a transaction on Friday, September 4th. The shares were sold at an average price of $210.30, for a total value of $10,515,000.00. Following the completion of the transaction, the director directly owned 171,977 shares of the company's stock, valued at approximately $36,166,763.10. This trade represents a 22.52% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, COO Dhiraj Mallick sold 396,000 shares of the firm's stock in a transaction on Tuesday, September 29th. The shares were sold at an average price of $204.04, for a total transaction of $80,799,840.00. Following the completion of the transaction, the chief operating officer directly owned 396,000 shares of the company's stock, valued at approximately $80,799,840. This trade represents a 50.00% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last ninety days, insiders sold 1,924,452 shares of company stock worth $394,628,154.

Institutional Trading of Cerebras Systems

A number of large investors have recently made changes to their positions in CBRS. Washington University lifted its holdings in shares of Cerebras Systems by 175.3% in the 3rd quarter. Washington University now owns 1,517,400 shares of the company's stock valued at $269,566,000 after acquiring an additional 966,314 shares during the last quarter. Value Aligned Research Advisors LLC purchased a new position in Cerebras Systems during the second quarter worth $241,934,000. Wellington Management Group LLP purchased a new position in Cerebras Systems during the second quarter worth $194,853,000. Lunate Capital Ltd bought a new position in Cerebras Systems during the third quarter valued at $115,351,000. Finally, State Street Corp bought a new stake in shares of Cerebras Systems in the 2nd quarter worth about $105,343,000.

About Cerebras Systems

Cerebras Systems develops computing systems and software designed for artificial intelligence and other compute-intensive workloads. Its products are built around the Wafer-Scale Engine, a large processor designed to support AI model training and inference, and include the CS-3 system and related software.

The company also offers cloud-based access to its AI computing infrastructure, giving customers a way to run AI workloads without deploying its systems on site. Its offerings are aimed at organizations developing and operating large AI models, including businesses, research institutions and public-sector customers.

Founded in 2015, Cerebras is headquartered in Sunnyvale, California.

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