Cerebras Systems (NASDAQ:CBRS) Given New $200.00 Price Target at Needham & Company LLC

Key Points

• Needham cut its price target on Cerebras from $300 to $200 but maintained a Buy rating; the new target implies 104.6% upside from the prior close. Analysts’ consensus rating is Moderate Buy, with an average target of $251.80.
• Cerebras reported quarterly EPS of $0.13, beating estimates that called for a $0.13 loss, and revenue of $230.87 million.
• Company insiders sold about 1.87 million shares worth $383.7 million over the past three months, including substantial sales by the CEO and CFO.

Cerebras Systems (NASDAQ:CBRS - Get Free Report) had its price target lowered by stock analysts at Needham & Company LLC from $300.00 to $200.00 in a research report issued on Friday, Benzinga reports. The brokerage presently has a "buy" rating on the stock. Needham & Company LLC's price target would suggest a potential upside of 104.60% from the company's previous close.

Several other brokerages have also weighed in on CBRS. Rosenblatt Securities reissued a "buy" rating and issued a $300.00 price objective on shares of Cerebras Systems in a report on Wednesday, August 19th. Mizuho decreased their price target on shares of Cerebras Systems from $310.00 to $300.00 and set an "outperform" rating for the company in a report on Thursday, August 13th. Jefferies Financial Group raised shares of Cerebras Systems to an "outperform" rating in a research report on Monday, October 5th. UBS Group dropped their price objective on shares of Cerebras Systems from $330.00 to $250.00 and set a "buy" rating on the stock in a research note on Monday, November 2nd. Finally, Freedom Capital raised shares of Cerebras Systems from a "hold" rating to a "strong-buy" rating in a report on Friday, October 2nd. Two investment analysts have rated the stock with a Strong Buy rating, ten have given a Buy rating, one has assigned a Hold rating and one has assigned a Sell rating to the company's stock. Based on data from MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and an average price target of $251.80.

Cerebras Systems Stock Performance

CBRS stock opened at $97.75 on Friday. The business's 50 day simple moving average is $152.65. Cerebras Systems has a 52-week low of $77.84 and a 52-week high of $386.34. The company has a current ratio of 5.82, a quick ratio of 5.80 and a debt-to-equity ratio of 0.02.

Cerebras Systems (NASDAQ:CBRS - Get Free Report) last released its quarterly earnings results on Thursday, November 12th. The company reported $0.13 earnings per share for the quarter, topping analysts' consensus estimates of ($0.13) by $0.26. The company had revenue of $230.87 million for the quarter. As a group, equities research analysts predict that Cerebras Systems will post -0.52 EPS for the current fiscal year.

Insider Buying and Selling

In other news, CEO Andrew D. Feldman sold 37,441 shares of the company's stock in a transaction dated Friday, September 4th. The shares were sold at an average price of $210.46, for a total transaction of $7,879,832.86. Following the completion of the transaction, the chief executive officer owned 16,853 shares in the company, valued at approximately $3,546,882.38. This represents a 68.96% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CFO Robert Patrick Jr. Komin sold 32,500 shares of the company's stock in a transaction dated Tuesday, September 29th. The stock was sold at an average price of $203.53, for a total transaction of $6,614,725.00. Following the transaction, the chief financial officer owned 30,670 shares of the company's stock, valued at $6,242,265.10. This represents a 51.45% 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 a total of 1,874,452 shares of company stock valued at $383,719,154 in the last three months.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently bought and sold shares of the company. Washington University grew its stake in shares of Cerebras Systems by 175.3% in the third quarter. Washington University now owns 1,517,400 shares of the company's stock worth $269,566,000 after purchasing an additional 966,314 shares in the last quarter. Value Aligned Research Advisors LLC acquired a new stake in Cerebras Systems in the second quarter worth about $241,934,000. Wellington Management Group LLP bought a new position in Cerebras Systems in the 2nd quarter valued at about $194,853,000. Lunate Capital Ltd acquired a new position in Cerebras Systems during the 3rd quarter valued at about $115,351,000. Finally, State Street Corp increased its stake in Cerebras Systems by 15.2% during the 3rd quarter. State Street Corp now owns 549,086 shares of the company's stock valued at $97,545,000 after buying an additional 72,423 shares during the period.

Cerebras Systems News Roundup

Investors following CBRS have been watching these news items:

• Positive Sentiment: Q3 results topped expectations: Cerebras reported $0.13 in earnings per share versus analysts’ expected loss of $0.13, and $230.9 million in Core revenue. The company also reported $210.8 million in GAAP revenue. Q3 results and outlook
• Positive Sentiment: Cloud growth is a major driver: Core cloud revenue rose 272% year over year to $144.9 million. Cerebras also disclosed a Microsoft deal, two new hyperscaler wins, and 700 megawatts of data-center capacity under contract—signals of expanding demand for its AI infrastructure. CNBC report on results and Microsoft deal
• Negative Sentiment: Cerebras reportedly delayed delivery of AI capacity for OpenAI because of data-center buildout delays, which could defer expected revenue. Direct sales of AI chips also fell, leaving the company more reliant on growing cloud revenue. Report on OpenAI delivery delay

Cerebras Systems Company Profile

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.

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