Cerebras Systems (NASDAQ:CBRS) Raised to "Strong-Buy" at Freedom Capital

Key Points

• Freedom Capital upgraded Cerebras Systems to “strong buy” from “hold,” while the broader analyst consensus remains “moderate buy” with a $299.90 price target.
• Shares opened at $166.43, down 1.8%, after the company reported a quarterly loss of $2.98 per share—far worse than the $0.21 consensus estimate—despite 74.3% year-over-year revenue growth to $209.87 million.
• Insider selling remains a concern: company insiders sold 1.86 million shares worth approximately $387.7 million over the past 90 days, including substantial sales by the CEO and a director.

Cerebras Systems (NASDAQ:CBRS - Get Free Report) was upgraded by stock analysts at Freedom Capital from a "hold" rating to a "strong-buy" rating in a research note issued to investors on Friday, Zacks reports.

Several other research firms have also commented on CBRS. Zacks Research raised shares of Cerebras Systems to a "hold" rating in a research note on Tuesday, June 9th. Morgan Stanley upped their price target on Cerebras Systems from $273.00 to $279.00 and gave the company an "overweight" rating in a report on Thursday, August 13th. Mizuho cut their price objective on Cerebras Systems from $310.00 to $300.00 and set an "outperform" rating for the company in a research report on Thursday, August 13th. Rosenblatt Securities reiterated a "buy" rating and set a $300.00 price objective on shares of Cerebras Systems in a research report on Wednesday, August 19th. Finally, Craig Hallum initiated coverage on Cerebras Systems in a research note on Monday, June 8th. They set a "buy" rating and a $325.00 price objective for the company. Two equities research analysts have rated the stock with a Strong Buy rating, nine have assigned a Buy rating, one has assigned a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat, the company has a consensus rating of "Moderate Buy" and a consensus price target of $299.90.

Cerebras Systems Stock Down 1.8%

Shares of CBRS stock opened at $166.43 on Friday. The company has a debt-to-equity ratio of 0.02, a current ratio of 5.82 and a quick ratio of 5.80. The company's 50-day moving average price is $201.27. Cerebras Systems has a fifty-two week low of $160.81 and a fifty-two week high of $386.34. The company has a market capitalization of $39.54 billion and a PE ratio of -2,080.38.

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 for the quarter, missing analysts' consensus estimates of ($0.21) by ($2.77). The business had revenue of $209.87 million for the quarter. Cerebras Systems's revenue for the quarter was up 74.3% compared to the same quarter last year. On average, sell-side analysts anticipate that Cerebras Systems will post -0.52 earnings per share for the current year.

Insider Transactions at Cerebras Systems

In other news, CEO Andrew D. Feldman sold 237,559 shares of Cerebras Systems stock in a transaction on Friday, August 21st. The stock was sold at an average price of $199.27, for a total transaction of $47,338,381.93. Following the transaction, the chief executive officer owned 16,853 shares in the company, valued at approximately $3,358,297.31. The trade was a 93.38% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, Director Steven Vassallo sold 50,000 shares of the company'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 transaction, the director directly owned 171,977 shares in the company, valued at $36,166,763.10. The trade was a 22.52% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last ninety days, insiders have sold 1,864,452 shares of company stock worth $387,680,754.

Institutional Investors Weigh In On Cerebras Systems

Several hedge funds have recently bought and sold shares of the business. Silicon Valley Capital Partners purchased a new position in Cerebras Systems during the 2nd quarter valued at about $44,000. IFP Advisors Inc purchased a new stake in shares of Cerebras Systems in the second quarter worth approximately $169,000. Integrated Wealth Concepts LLC purchased a new stake in shares of Cerebras Systems in the second quarter worth approximately $197,000. Corient Private Wealth LP acquired a new stake in shares of Cerebras Systems during the second quarter worth approximately $205,000. Finally, Tiger Pacific Capital LP acquired a new stake in shares of Cerebras Systems during the second quarter worth approximately $221,000.

More Cerebras Systems News

Here are the key news stories impacting Cerebras Systems this week:

• Positive Sentiment: Analyst pushes back on OpenAI concerns: A recent analyst argued that fears of OpenAI moving its AI workloads away from Cerebras are overblown and described competition from NVIDIA as exaggerated. The bullish view helped support the stock after its recent selloff. Cerebras Systems Stock Rises After Analyst Calls OpenAI Fears Overblown
• Positive Sentiment: Long-term AI demand remains a support: Cerebras continues to benefit from an attractive AI-inference market opportunity, while analysts have generally maintained positive ratings and price targets well above the current trading level. However, the company’s most recent quarterly loss significantly exceeded consensus expectations despite strong revenue growth.
• Neutral Sentiment: Valuation remains difficult to assess: Cerebras is valued on expected AI growth, backlog and technology advantages rather than current earnings. Analysts remain broadly constructive, but investors are debating whether its performance advantages will translate into durable market share and profitability. Cerebras Systems This Is Not a Golden Buying Opportunity
• Negative Sentiment: Multiple executives sold shares: COO Dhiraj Mallick sold 396,000 shares worth about $80.8 million, CFO Robert Patrick Jr. Komin sold 32,500 shares worth roughly $6.6 million, and CAO Yagnesh Patel sold 1,320 shares. The transactions were made under pre-arranged Rule 10b5-1 plans, but their scale—particularly the COO’s sale—has increased investor concern and selling pressure. Cerebras Executive Insider Sale
• Negative Sentiment: Competitive and customer risks persist: Reports that OpenAI may be shifting some of its fastest AI models toward NVIDIA hardware have raised concerns about Cerebras’ anchor-customer relationship and future growth. The stock also slipped below its IPO price as insider-sale filings added to the negative narrative. Cerebras Slipped Below Its IPO Price as Insiders Filed to Sell

Cerebras Systems Company Profile

Cerebras Systems is an artificial intelligence computing company that develops specialized hardware and software for training and deploying large AI models. The company's technology is designed to address the computational demands of generative AI, deep learning and other data-intensive workloads.

Its core products include the Wafer-Scale Engine, a purpose-built AI processor produced on a single silicon wafer, and the CS-3 AI supercomputer, which incorporates that processor into an integrated computing system.

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